The Loudoun County Supervisory Board asked county staff early Wednesday morning to prepare the proposed budget for fiscal year 2023 around a scenario of a property tax rate of $ 0.94, which is a rate equalized estimated at $ 0.89.
The current property tax rate is $ 0.980.
At the rate of $ 0.94 per $ 100 of appraised value, the average homeowner’s bill would increase from $ 291 for homeowners to $ 5,732, according to county staff.
Additionally, the motion called for starting at the personal property tax rate of $ 4.20 per $ 100 of assessed value for tax year 2022 and $ 4.15 for tax year 2023, and for staff to come up with options that would keep the personal property tax rate of $ 4.20 unchanged for the 2023 tax year.
The county administrator was also ordered to schedule half a percent of the property tax rate as a dedicated revenue stream for affordable housing needs – estimated at $ 5.6 million – before splitting the new local tax funding between county government and school system budgets. .
President Phyllis Randall (D-At Large) said the board has generally reduced the tax rate every year for the past decade to the equalized rate. She said that in the process, the action helped fund an aggressive capital budget and increased county government and school division operating budgets through growth in real estate and personal portfolios. One example is the unprecedented growth of the data center industry resulting in rapid spike in revenue growth, according to an Oct. 12 staff report.
But while the board’s tax policy provided consistent property tax bills to taxpayers, a report from county staff said Loudoun’s budget had not benefited from the sharp reassessment of its property portfolio.
“There are a lot of reasons we’re in this fix right now – t,” Randall said. The funny thing is, no matter how much we put it at the equal or lower tax rate, we are always accused of raising taxes.
According to the guidelines, the property tax rate would increase, while lowering taxes on personal property, which include items such as vehicles and computer equipment in data centers, and other taxable property, including vehicles for fiscal year 2023.
Supervisor Kristen Umstattd (D-Leesburg) urged the board to be careful not to impose additional tax burdens on the working, middle and lower classes.
“I think we need to be aware that the recommended property tax rate is a significant drop from what it is now, even though it is higher than the equalized rate, but I think we still need to be mindful of all of us. these factors as we go along., “she said.
The finance committee of the board of trustees also asked county staff to maintain that at least 51.5% of total General Fund taxes are generated from the property tax rate by lowering personal property tax. if necessary.
Residential property values have continued to strengthen, according to county staff, but the value of computer equipment, which the county has relied on for its income, has become unpredictable.
Randall said valuation information is preliminary and subject to change next month. The board will vote on the final budget in April.
She said she hopes to have the tax rates as low as possible while maintaining county services.
Supervisor Matt Letourneau (R-Dulles), who chairs the finance committee, said the county had seen enough revenue growth to cover the increases until last year. He pointed out that the staff report said residential development has slowed down, but expects an increase over the next two years with development projects approved.
However, he said the county would eventually run out of available land.
Letourneau said he would not be supporting the motion, instead preferring other tax rate scenarios and their impact on board policies, which the board has done for the past six to seven years.
“I’m not saying that I wouldn’t support the [staff] advice that is being put out tonight, but what I want to know is what are the top five things the administrator would take away, if he had to, ”Létourneau said.