Alexandria City Council to Consider Real Estate Tax Rate Increase of Up to One Cent for 2012
- Alexandria City Council authorized advertising a maximum possible real residential property tax increase to $1.008 per $100 assessed value, an increase of one cent.
On March 13, the Alexandria City Council voted 5-2 to authorize advertisement of the maximum possible real (residential and commercial) property tax rates it will consider for the 2012 calendar year. Based on Council’s actions, the base real estate tax rate could be raised by a maximum of one cent, up to $1.008 per $100 assessed value. City Council could set any rate below the maximum of $1.008. The personal property tax rate on vehicles and business tangible property tax rates would remain unchanged.
The one cent maximum possible property tax rate increase gives the City Council flexibility to make additional budget adjustments prior to budget adoption on May 7. In particular, Council cited the uncertainty caused by the lack of an adopted state budget, as well as federal budget reductions as reasons for needing additional budget flexibility. City Council emphasized that no decision has been made yet on what the adopted rate will be. The public hearing on the ordinance establishing the real property tax rate will be held on Saturday, April 14 at 9:30 a.m., in City Council Chambers, City Hall, 301 King St. The Council will determine and vote on a final real property tax rate when they adopt the Operating Budget and Capital Improvement Program on May 7, 2012.
City Council’s authorization of a potential change to the real property tax rate, if adopted at the maximum rate, would result in the average residential tax bill increasing by up to $98 or 2.2% when compared to 2011 real estate tax rates. The City’s real estate tax rates would still be among the lowest in the Northern Virginia region, even if the maximum tax rate increase is approved.