Higher Real Estate Tax Rate Ruled Out By Fairfax Supervisors

FAIRFAX COUNTY, VA — On Tuesday, the Fairfax County Board of Supervisors set an advertised real estate tax rate of $1.15 per $100 of assessed value, the county's current rate. This is the highest tax rate that could be approved as part of the fiscal year 2022 budget process.

The advertised tax rate is a ceiling, not a final real estate tax rate. The tax rate will be finalized when the Board of Supervisors adopts the budget on May 4.

The board could decide to adopt a lower rate. County Executive Bryan Hill's fiscal year 2022 budget proposal calls for a one-cent reduction, which would make the real estate tax rate $1.14 per $100 of assessed value.

As stated in the Board of Supervisors agenda, "Advertising a real estate tax rate of $1.15 per $100 of assessed value gives the Board of Supervisors an additional revenue option to consider and provides flexibility during their deliberations on the FY 2022 budget. Advertising an increase in the rate does not prevent the Board from lowering any advertised tax rate, but a higher tax rate cannot be imposed without having advertised the higher rate."

Even if the tax rate goes down by one cent, the average annual residential tax bill would go up by $224. That's due to 88 percent of residential properties increasing in value due to market-driven increases, according to 2021 assessments. The assessments are based on 100 percent of fair market value as of Jan. 1, 2021.

Board of Supervisors Chairman Jeff McKay acknowledged the increase many homeowners would see due to assessments.

"We want to give ourselves the flexibility to pass the best budget we can that recognizes the financial constraints many people in our community are feeling but also the need for essential county services in the midst of the pandemic," said McKay.

Springfield District Supervisor Pat Herrity, the lone Republican on the board, said cuts or deferrals of some budget areas are possible to provide a flat tax bill for financially struggling residents. He noted that residential values are increasing while commercial values drop.

Lee District Supervisor Rodney Lusk supported the advertised tax rate so the board has flexibility to act "if unforeseen circumstances arise" before budget adoption. However, Lusk plans to look for opportunities for savings within the budgets, as fixed-income residents in his district face higher assessment values.

"I am also keenly aware of the hardship that this tax rate increase would cause on some homeowners in my district," said Lusk. "As this board is aware, Lee District experienced the highest increased assessment in the county at 6.32 percent...This is primarily due to the fact that Lee District has an affordable housing stock that makes it ripe for sellers to engage in bidding wars, which then leads to higher sales prices, and that ultimately leads to higher assessments."

Mason District Supervisor Penelope Gross noted the budget's impact on residents who use county services.

"While I am always concerned about those who do not perhaps use the services are the ones who quite often want much, much lower taxes, there are so many people who do use our services," said Gross. "So if you have children in the schools, if you use the libraries, if you use the parks, if you use any kind of family services, if you use just about any county-related, that's part of our civilized society, and that's those dues we pay."

Several supervisors reiterated support for tax reform in the Virginia General Assembly that could lower the reliance on real estate tax revenues.

Supervisors have held or will hold town halls on the budget in the coming weeks. The Board of Supervisors will be holding public hearings on the budget proposal April 13-15, followed by a mark-up of the budget on April 27. On May 4, the Board of Supervisors is scheduled to adopt the fiscal year 2022 budget.

For more about the budget proposal and timeline, visit www.fairfaxcounty.gov/budget.