For Immediate Release: March 17, 2017
This news release has been corrected with the year 2017 in the headline.
On March 14, the Alexandria City Council voted 6-1 that it will consider a 2017 calendar year real estate tax rate of up to $1.13 per $100 of assessed value, and that it will not consider any increase in the rate for the personal property tax on vehicles or the rate for the tax on business tangible property. The real estate tax rate City Council eventually adopts could be higher, lower, or the same as the current rate of $1.073, but cannot be higher than $1.13.
If City Council were to adopt a new real estate tax rate of $1.13 per $100 of assessed value, or a 5.7-cent increase over the current rate of $1.073, the average residential tax bill would increase by $356 per year, or 6.3 percent, when compared to 2016. No decision has been made yet on what the adopted rate will be.
A possible real estate tax rate increase gives City Council flexibility to make operating and capital investment budget amendments prior to adopting the Fiscal Year (FY) 2018 budget. In particular, the focus of City Council’s discussion about the tax rate was to potentially apply the $11 million in annual revenue from 3 cents of this rate increase towards additional funding for School and City capital needs. On February 21, the City Manager proposed a real estate tax rate of $1.10 per $100 of assessed value, or 2.7 cents higher than the current rate of $1.073.
A public hearing on the ordinance establishing the real property tax rate will be held on Saturday, April 22, at 9:30 a.m., in City Council Chambers, City Hall, 301 King St. City Council will adopt a final real property tax rate in conjunction with the adoption of the FY 2018 Operating Budget and Capital Improvement Program on May 4.
For more information about the FY 2018 budget process, visit www.alexandriava.gov/Budget