Tax Rate Reduction OK'd As Final Vienna Budget Approval Nears

Vienna VA

03 May, 2022

6:06 PM

Description

VIENNA, VA — Last week, Vienna Town Council approved the annual budget with a 1.75-cent reduction to the real estate tax rate. Final budget approval That brings the real estate rate to 20.5 cents per $100 of assessed value, which Town of Vienna property owners pay on top of Fairfax County's real estate tax. The town has not increased the real estate tax rate for 10 straight years. During the meeting, Vienna Mayor Linda Colbert noted the impact of higher assessments on town residents. "We wanted to help mitigate the tax burden on property owners stemming from largeincreases in real estate assessments," said Colbert in a statement after the budget approval. "Thanks to conservative budgeting, a strong business and state recovery from the pandemic, and robust real estate development, the Town finance staff determined that Vienna realized enough of a surplus last year to offset a larger tax rate reduction and still maintain a rainy-day fund." Even with a reduction in the real estate tax rates, a property owner's tax bill could still increase depending on how much their property value appreciated in the latest assessment. Councilmember Chuck Anderson estimated a there was a 10 percent assessment increase townwide in the last year. "This [1.75] cent per $100 reduction represents an 8 percent decrease in the tax rate," said Anderson. "Roughly speaking, we're talking about a net 2 percent increase in taxes for all. That is well below the rate of inflation, particularly given the fact that this kicks in for the next fiscal year, and the latest month inflations were running in the 7 to 8 percent range." Tax bills will also depend on Fairfax County's adopted rate. Fairfax County's budget markup reduces the real estate tax rate from $1.14 to $1.11 per $100 of assessed value; the Board of Supervisors' final budget approval is expected on May 10. The town's proposed 2022-2023 budget of $48.7 million covers four operating funds: general, water and sewer, debt service, and stormwater. The proposal adds no new program but funds pay increases for town employees. A 3 percent increase deferred from 2021-2022 draws funding from a surplus, and another 4 percent increase would be funded in the 2022-2023 budget. Town Manager Mercury Payton had originally proposed a one-cent tax rate reduction. He praised town staff for finding a way to lower the rate and not cut service levels. "We look forward to meeting the needs of the residents, as well as being able to meet this need fiscally," said Payton. Town Council's budget adoption is scheduled for the May 16 meting at 8 p.m.