Real Estate Tax Rate Remains Same In 2024 Alexandria Budget Proposal

ALEXANDRIA, VA — Alexandria's real estate tax rate would remain the same in the budget proposed by City Manager James Parajon Tuesday. But property owners whose assessed property values increased would still see higher tax bills with an unchanged tax rate.

The fiscal year 2024 budget proposal includes a $881.1 million general fund, a 5 percent over the current year's $839.2 million budget. A $2.39 billion 10-year Capital Improvement Program was also proposed for fiscal years 2024 to 2033. The budget would provide a $258.7 million budget transfer to Alexandria City Public Schools, a 4 percent ($9.9 million) increase.

"The Fiscal Year Budget reflects the cautious optimism resulting from our steady recovery from the economic impacts of the pandemic, balanced against the uncertainty surrounding both local and global infationary pressures," Parajon said in his budget proposal message. "Although challenges remain ahead of us, our financial outlook coupled with the City's stellar fiscal policies will allow us to continue to execute on the many key initiatives adopted by the City Council in the past year while strategically investing in some key areas with this budget."

The real estate tax rate would remain $1.11 per $100 of assessed value. One alternative budget proposal calls for a one-cent real estate tax increase.

That proposal comes after assessment data was presented to City Council showing the residential property tax base increasing 5.02 percent. The average single-family home assessed value increased 4.58 percent, while the average value for a residential condominium increased 3.48 percent. The commercial tax base overall increased by 1.97 percent, but changes varied by property types. Multifamily rental properties had an 6.19 percent increase in value.

"With the impacts of average assessment increases included, this means the average single-family homeowner would pay $490 more in 2023 than in 2022," Mayor Justin Wilson shared in his March newsletter. "The average condo owner would pay $101 more in 2023 versus 2022."

The city's stormwater utility fee is proposed to increase for stormwater management as well as mandated Chesapeake Bay water quality cleanup. The stormwater utility rate for a small single-family home would increase from $294 to $308.70. According to the mayor's newsletter, the proposed annual fee would be $86.44 for condos, $129.65 for townhomes, $308.70 for small single-family homes and $515.53 for large single-family homes.

Water, refuse or sanitary sewer fees are not proposed to increase.

The personal property tax on vehicles would remain $5.33 per $100 of vehicle’s value. However, the use of a lower assessment ratio for vehicle values is recommended due to vehicle values increasing due to pandemic-related supply issues. In the last budget, a 78.8 percent assessment tax ratio was used for tax year 2022, which means a vehicle's actual market value was discounted by 21.2 percent for tax bills. In addition, City Council shifted the state's Personal Property Tax Relief funds to lower-value cars, giving a 100 percent car tax subsidy to vehicles priced at $5,000 or less.

Parajon's priorities outlined in the budget proposal included public safety, affordable housing, multilingual community engagement, youth and families, economic development growth, staff retention and recruitment, and climate action. Full budget proposal information is available on the city's website.

The city manager will hold a public budget presentation on March 2 at 7 p.m. at Charles E. Beatley, Jr. Central Library.

On March 14, City Council will set the maximum tax rate it will consider for the budget. Several work sessions and public hearings will be held before City Council will adopt the final fiscal year 2024 budget on May 3.