Higher Tax On Data Center Equipment In Approved Prince William County Budget

PRINCE WILLIAM COUNTY, VA — A higher tax on data center and other business equipment and lower real estate tax is in the county budget passed by the Prince William Board of County Supervisors Tuesday.

"This Board is committed to working together to serve the residents of our community and the adopted budget reflects that commitment," said Chair Deshundra Jefferson in a statement. "We were able to lower the tax rate while providing additional funding for critical investments in our schools and in our infrastructure."

The fiscal year budget for 2025, which begins on July 1, 2024, includes an increase from $2.15 to $3.70 per $100 of assessed value on business tangible computer equipment and peripherals. That affects data centers and other businesses. Under state law, the county cannot raise the tax on business equipment above the personal property tax rate, which is $3.70 for vehicles.

Property owners will face a minimal average increase in tax bills due to a decrease in the real estate rate from $0.966 to $0.920 per $100 of assessed value. The average residential real estate tax bill increase would increase by $26, as the lower tax rate offset most of the average assessment increase.

The county's general fund budget totals $1.80 billion, accounting for county staff pay increases and the ratified collective bargaining agreements with police and fire unions. The county is funding an assessment of pay competitiveness and a compensation study for the sheriff's office and adult detention center. A compensation study for police has already been included in the collective bargaining agreement. Along with funding staffing plans for police and fire, the budget funds new sheriff's deputies, four new attorneys and four administrative positions in the Commonwealth’s Attorney, support staff for a new judge in the Juvenile and Domestic Relations Court, and a caseworker for the veteran’s docket.

The largest increase in the budget is $105.1 million for Prince William County Public Schools. The county has a revenue sharing agreement to provide PWCS with 57.23 percent of the county’s general fund revenues. The PWCS budget included an average pay increase for employees, 125 new teacher assistants for students with special needs, 23 kindergarten teacher assistants, 15.5 reading specialists, a stipend for IEP case managers, STEM/robotics coordinator, human trafficking specialist and more.

"I sincerely appreciate the Prince William Board of County Supervisors and our taxpayers
for their support of our PWCS budget for the 2024-25 school year," said Superintendent LaTanya McDade. "Our dedicated team spent countless hours crafting a comprehensive budget tailored to meet the unique needs of our students. This budget will help provide the support needed to meet the goals of our strategic plan."

The county's budget creates an affordable housing office within the Office of Housing and Community Development and provides funding to an affordable housing trust focused on affordable housing construction. The budget will provide $5.5 million in fiscal years 2025 and 2026, then $5 million each in fiscal years 2027, 2028 and 2029.

Another new office being created is the Office of Youth Services to provide outreach and services to disconnected and at-risk youth. A 3 percent increase for existing community partners was allocated as well.

On the transit side, the Board of County Supervisors decided to increase funding by $9.1 million for the Potomac and Rappahannock Transportation Commission, which operates the OmniRide buses and is facing a budget gap. The budget also maintains the subsidy for Virginia Railway Express and funds maintenance for the Neabsco/Potomac Commuter Parking Garage on track to be completed this fall.

The full budget will be shared at www.pwcva.gov/budget.