Meals Tax Rate, Others Changes In Budget Approved By Prince William Supervisors

PRINCE WILLIAM COUNTY, VA — For the second year, a tax rate affecting data centers will go up in Prince William County.

On Tuesday, the Prince William Board of County Supervisors approved the county's multi-billion fiscal year 2026 budget with several tax rate changes, including the first car tax rate decrease in decades. The budget includes record funding for Prince William County Public Schools, pay increases for county employees and other funding priorities.

"Prince William County is a growing community, and with that comes increased demand for services and quality of life amenities," said Chair Deshundra Jefferson (D-at large) in a statement. "This is a responsible, balanced budget that meets those needs while aligning with our fiscal policies. I want our county to be known for its quality of life – and that means investing in our schools, public safety, parks and services for our most vulnerable residents."

The board reduced the tax rate from $0.92 to $0.906 per $100 of assessed value. The county's latest estimate said the average residential tax bill would increase by $273 due to property value increases, compared to $353 if the current rate had been kept. Last year, the board lowered the rate from $0.966 to $0.920 per $100 of assessed value.

For the first time since 1990, the board reduced the personal property tax on vehicles from $3.70 to $3.50 per $100 of assessed value. However, the personal property tax on business computer equipment and peripherals increased from $3.70 to $4.15 per $100 of assessed value. That comes after the board approved a major increase last year from $2.15 to $3.70 per $100 of assessed value. The computer equipment and peripherals tax is paid by businesses, including data centers.

The board also approved a meals tax decreased from 4 percent to 3 percent, but the effective date was delayed until Jan. 1, 2026.

As part of the revenue sharing agreement with the school division, the budget provides a record $991.6 million transfer to Prince William County Public Schools. That represents an $80.6 million increase from last year. PWCS said in a statement that the board's approval allows the school division's $1.89 billion budget to move forward with pay increases and increases to student services and classroom support.

The PWCS budget includes implementing the first year of an over $160 million wage agreement through the collective bargaining process. The first year of the agreement provides average pay increases of 7 percent for PWCS staff, and the second year provides an average 6.4 percent increase. Pay scale adjustments and supplements above the regional median are also included to keep the school division competitive with others across the region.

"We are incredibly grateful to the Board of County Supervisors and our community for their support of this budget," said Superintendent LaTanya McDade. "This investment directly supports our strategic priorities and will advance our commitment to ensuring every student has access to a thriving future."

On the public safety side, the county budget works on increasing staffing for fire and rescue, police, public safety communications, sheriff's office, Commonwealth's Attorney, criminal justice services and clerk to the Circuit Court. A statement from the board chair said the county is getting closer to reducing the firefighter work week to 50 hours.

Other areas of the budget include pay increases for employee recruitment and retention, an additional $5.5 million for a Housing Trust Fund to provide relief to residents struggling with high rent payments, continued support for Virginia Railway Express and OmniRide, $13 million to replace cybersecurity and network infrastructure, $5.7 million for the future Crisis Receiving Center's operations while a Medicaid billing waiver is processed, homelessness street outreach services and hypothermia shelter services in the western county, new elections equipment and more. The budget will open the county landfill and compost facility on Sundays and two additional hours on Thursdays starting in January 2026.

The county's updated capital budget includes funding for construction and renovation of fire and rescue stations, park facility improvements, development of Homeless Navigation Centers, roadway and pedestrian improvement projects, and expansion of the Judicial Center and Public Safety Training Center.

Check back on the county's website at a later time for adopted budget documents.