2021 Real Estate Tax Increase Ruled Out By Alexandria Council

ALEXANDRIA, VA — On Tuesday, Alexandria City Council set a real estate tax range up to $1.13 per $100 of assessed value, which means it won't consider a tax increase in the 2021 calendar year.

With this decision, City Council could adopt the current tax rate of $1.13 per $100 of assessed value or a lower rate, but the rate cannot be higher. City Council will also not consider tax increases on personal property (vehicles) or business tangible property taxes.

Even if the tax rate stays the same, property owners with higher property assessment values could see higher tax bills in the 2021 calendar year. The overall residential tax base increased by 6.02 percent, while the overall commercial tax base decreased by 1.96 percent.

According to a city news release, the average residential tax bill would increase by $375 if City Council keeps the current $1.13 per $100 of assessed value rate. If a two-cent decrease is adopted to set the rate at $1.11 per $100 of assessed value, the average residential tax bill would increase by $252.

City Manager Mark Jinks included alternate budget options with different tax rates in his fiscal year 2022 budget proposal. His main $767.6 million operating budget proposal has a two-cent real estate tax cut and funds 100 percent of the Alexandria City Public Schools operating budget request.

The two alternative budgets include $780.6 million budget with an unchanged real estate tax rate and expanded services and investments. The other is a $741.7 million budget with a six-cent real estate tax reduction, which doesn't increase the average residential tax bill but would necessitate service reductions.

By considering a tax rate up to $1.13 per $100 of assessed value, City Council could have flexibility to decide on operating budget and capital investment priorities not included in the city manager's main budget proposal.

The final tax rate will be set when City Council adopts the fiscal year 2022 budget on May 5. Budget work sessions continue in March and April, and a virtual public hearing on the real estate tax rate will be held at 9:30 a.m. on April 17. The budget adoption meeting is scheduled for 7 p.m. on May 5.

For full budget proposal documents and upcoming meetings, visit www.alexandriava.gov/Budget.