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PW board caps tax rate at $1.21
It took three tries but the Prince William Board of County Supervisors overwhelmingly agreed Tuesday to cap the county's real estate tax rate at $1.212 per $100 of assessed value. The tax rate could still be set lower but it will not be higher.Tuesday was the second time the supervisors have worked on the tax rate. Two weeks ago, the board members tried several times to reach an agreement on the tax cap before giving up and putting off a decision until this week.
The hiatus worked; Tuesday's debate was relatively short as most of the supervisors agreed that a compromise was needed.
The supervisors weren't voting to set the tax rate but merely to advertise the proposed rate. The actual tax rate can later be set lower but not higher than advertised. Some supervisors wanted to set a higher rate to give the board flexibility in developing the budget. Other supervisors preferred to keep the advertised rate low so the board has no choice but to lower taxes and cut services.
The $1.212 rate that was adopted was the middle ground and was also what was recommended by County Executive Craig Gerhart.
At that rate, the average residential tax bill will decrease by 12.7 percent – about $435.
But those statistics are misleading, according to two supervisors.
Occoquan Supervisor Mike May (R) pointed out that the people who would get the most tax relief are those in the 22191 and 22193 zip codes – Woodbridge and Dale City. That's because those areas are the ones hardest hit by falling home prices. In other areas, such as May's district, homes have held their value better so a lesser tax cut won't materialize and could actually end up being a tax hike for some homeowners.
But the discrepancy also exists even within zip codes, said Coles Supervisor Marty Nohe (R). Nohe lives in the 22193 zip code that will see the biggest relief from any tax cut – more than the countywide average. But under the $1.212 rate, Nohe said his tax bill will only drop by $26 per year.
“Let me be very clear; it is a tax cut,” he said. “But it's not the $450 average I was hoping to see.”
Neabsco Supervisor John Jenkins (D) suggested a higher rate of $1.294, arguing that under that rate, the supervisors could avoid making cuts to services while still ensuring that the average homeowner sees a $235 tax bill decrease.
“Everybody still gets a healthy refund,” he said.
But as May pointed out, not everyone would get a refund at all under that rate; some homeowners would get a much bigger break and some would pay more, resulting in the $235 countywide average.
Jenkins' motion failed, supported only by himself and Woodbridge Supervisor Frank Principi (D).
Principi then suggested $1.236 but that idea also went down, backed by only the two Democrats.
May was then successful in reaching a compromise at $1.212, the rate suggested by the county staff. Nohe, Chairman Corey Stewart, Gainesville Supervisor John Stirrup, Dumfries Supervisor Maureen Caddigan and Brentsville Supervisor Wally Covington, all Republicans, had all said two weeks ago that they'd prefer a lower rate but all supported May's motion on Tuesday. Principi and Jenkins voted against the proposal.
The proposed budget for the coming year is based on a tax rate of $1.198 per $100 of assessed value so at $1.212, the supervisors have some wiggle room as they finalize a spending plan. They have the option to stick with the higher tax rate and reinstate some of the services they have planned to cut, or to lower the rate and make more cuts in order to provide more tax relief.
Covington said he's inclined to go with the latter option because senior citizens and others on fixed incomes are being taxed off their land. While taxpayer money is well-used in funding programs that provide valuable services to citizens, if taxes get too high, low-income residents will be forced to use those services, he said.
“They're hurting and I'm not anxious to put more of them into these good programs,” he said.
The supervisors will hold a public hearing on the budget at 7:30 p.m. April 6.
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