Northern Virginia Counties and Cities Plan to Raise Real Estate Tax Rates, Two Counties Opt Out

The battle over real estate tax rates is heating up in Northern Virginia, with most counties and cities planning to raise rates, but two counties standing firm against the trend.

Arlington County, Fairfax County, Fauquier County, and the city of Alexandria have all announced plans to increase real estate tax rates, sparking concern among residents. The average increase per home ranges from $390 in Arlington County to $524 in Fairfax County.

In Fairfax County, where a three-day budget hearing is underway, residents have already begun voicing their opposition to the proposed tax hikes. Some argue that they simply cannot afford to pay more in taxes, especially as real estate values continue to rise.

However, in Loudoun and Prince William Counties, a different approach is being taken. Despite the overall increase in home values, these counties have decided not to raise tax rates. Instead, Prince William County is looking to offset the need for a tax increase by raising taxes on data centers, which currently pay less in taxes compared to neighboring jurisdictions.

Board chair Deshundra Jefferson explained, “Data centers are paying far less in Prince William County than in neighboring jurisdictions. That’s why we are gonna raise it and use that to offset what we are charging property owners and homeowners.”

While residents in Loudoun and Prince William Counties will still see an increase in real estate taxes due to rising home values, the increase will be less compared to other areas. The decision to hold off on raising tax rates in these counties showcases a unique approach to balancing the budget while considering the impact on residents.