taxes

Arlington #39 on Highest Property Taxes List

By ARLnow.com

The average Arlington County homeowner paid $4,341 in annual property taxes between 2005 and 2009. That makes Arlington 39th on the list of highest median property taxes in the country, according to a new report by the Tax Foundation, a D.C.-based think tank.

While that figure is relatively high, Arlington’s taxes are relatively low by other measures. Arlington residents paid a median 3.46 percent of their income in property taxes, which is only the 328th highest rate in the country. The percentage of one’s home value paid in property taxes by Arlington residents between 2005 and 2009 was 0.77 percent, the 1523th highest rate in the country.

By contrast, Fairfax County was 37th on the property tax list, with an median property tax bill of $4,371 per year — $30 above Arlington. The difference is a bit more pronounced when considering the tax rate. Fairfax County homeowners paid 0.84 percent of their home’s value and 3.53 percent of their income in property taxes.

Alexandria residents paid less in property taxes — $3,827 per year — but actually paid more as a percentage of home value — 0.78 percent. In terms of income, however, Alexandria residents paid less than Arlington — 3.33 percent of income.

Montgomery County residents paid less than Arlington residents in all three categories. They paid $3,497 in property taxes, which is 0.72 percent of home values and 3.07 percent of income. D.C. residents had the best deal — an average of $1,778 paid in property taxes per year, which is 0.4 percent of home values and 1.9 percent of income.

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Wacky Conventions Stuff County Coffers

By ARLnow.com

In January, the National Mastitis Council brought its annual meeting to Arlington. Approximately 400 people from around the country and around the world gathered for four days and three nights at the Hyatt Regency Crystal City to discuss the latest advances in improving milk quality and maintaining the health of cow udders.

The total estimated economic impact for local businesses: $400,000. Total estimated hotel tax revenue: $11,250.

Each year, dozens of such specialized industry events quietly come to Arlington, spend bundles of money and leave without most residents even knowing they were here. All told — while there’s no official accounting of it — there are likely hundreds of meetings, conventions, tour groups and reunions that stay in Arlington hotels on an annual basis. And there are millions of dollars to be made from those gatherings — by hotels, restaurants, taxi companies and the county government.

The average size of a meeting booked through the Arlington Convention and Visitor’s Service is 175 people, according to Arlington Economic Development spokeswoman Karen Vasquez. The average meeting attendee spends $116 per day in Arlington on things like meals, transportation, shopping and attractions. Meanwhile, the average hotel room in Arlington is just over $165 per night.

Put that together, and you have the average three-day meeting producing about $118,650 worth of spending in Arlington County. Of that spending, the county collects a 4 percent tax on meals and a 5.25 percent tax on the hotel room. Not a bad haul for a random meeting of a group that most people have probably never heard of — like the International Society for Medical Publication Professionals.

(The hotel tax will be going down to 5 percent in 2012 thanks to political wrangling in Richmond. The 0.25 percent that Arlington will lose had been going to fund Arlington’s tourism promotion efforts. In its new budget, the County Board included one-time funding to keep the tourism office open through the middle of 2012.)

After a jump, a list of some of the other meetings that have recently come or will be coming to Arlington.

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‘Flash Mob’ Protests Inside Bank of America on Columbia Pike

By ARLnow.com

(Updated at 2:45 p.m.) Police responded to the Bank of America at the corner of Columbia Pike and Glebe Road this afternoon after a group of protesters paraded around the branch holding signs and shouting slogans.

Demonstrators with Alexandria-based Tenants and Workers United (TWU) chanted “tax the rich, jobs now, homes now” while dancing the “Tax the Rich Shuffle,” as part of a national tax day protest. TWU Interim Executive Director Jennifer Morley said they targeted Bank of America because the giant financial company paid no corporate income tax this year.

“For too long, the government has allowed corporations and the wealthy not to pay their fair share,” Morley said. “Unrestricted greed has led to lay-offs, foreclosures and high rates of unemployment in working class communities.”

Morley said about 50 people participated in the Arlington Bank of America protest. There were no arrests.

“Companies, like Bank of America, are about profits not jobs,” she continued. “The government must make Bank of America and the big corporations pay their fair share. The revenue can be used to create millions of living wage jobs with benefits and invest in our communities.”

Tenants and Workers United and a group called Right to the City are calling for three new federal tax initiatives. They want all corporate tax loopholes to be closed, they want a 0.25 percent tax imposed on the trading of financial products, and they want a 1 percent wealth tax on the top 5 percent of households. Together, the groups argue, those taxes could generate more than $1.2 trillion per year.

Other protests were planned today at banks, offices, city halls and post offices in Miami, New York, Boston, Providence, San Francisco, Oakland and Los Angeles. Video from the Arlington protest will be posted at righttothecity.org later today, Morley said.

Board Approves New $1 Billion FY 2012 Budget

By ARLnow.com

Today the Arlington County Board unanimously approved a new $1 billion budget.

The budget is 5.1 percent higher than its previous budget, but yet contained no tax rate increase. Rising property assessments allowed the board to keep the property tax rate steady at 95.8 cents per $100. The personal and business property taxes will remain the same. Trash and recycling fees will decrease by 5 percent.

“Taking into account increase in real estate assessments and fee changes, the overall tax and fee burden for the average Arlington homeowner will increase 1.4% — or about $7 a month — an increase less than the current Baltimore-Washington region inflation rate of 3%,” the county said in a statement.

The budget includes increased funding for housing and ‘safety net’ programs, as well as a number of other priorities. Funding for Arlington Public Schools will increase $38 million, or 9 percent, to $480.5 million.

BREAKING NEWS — Budget Will Hold Tax Rate Steady

By ARLnow.com

Arlington County’s real estate tax rate will be held steady for the next year, according to final budget guidance issued by the County Board.

At a work session yesterday, the board instructed County Manager Barbara Donnellan to hold the tax rate steady at 95.8 cents per $100 in the final budget.

“They’re sticking with their initial guidance of no real estate rate increase,” county spokeswoman Mary Curtius confirmed this morning.

Donnellan’s proposed budget had recommended holding the tax steady, but the board gave itself some wiggle room in February when it advertised a slightly higher tax rate. Even without a real estate tax rate increase, however, the county’s coffers will be bolstered in FY 2012 by a 6.3 percent rise in property assessments.

The board will vote on its final budget on Saturday.

Morning Notes

By ARLnow.com

Kaine Announces U.S. Senate Candidacy — Former Virginia governor Tim Kaine has quit his job as chairman of the Democratic National Committee to run for the U.S. Senate in Virginia. Kaine is running for the seat of the retiring Sen. Jim Webb (D). Announced Republican candidates for the seat include former governor George Allen and state Tea Party leader Jamie Radtke. [Washington Post]

Sorority to Hold Chili Cook-Off and Bingo Fundraiser — The Northern Virgina alumnae chapter of the Delta Gamma sorority will hold a chili cook-off and bingo fundraiser at the Lyon Village Community House (1920 N. Highland Street) on Saturday night. The event starts at 7:00 p.m. and benefits the blind and visually-impaired. Tickets are available online for $25 apiece. [Clarendon Nights]

Murky Coffee Tax Cheat Moves West — Former Murky Coffee owner Nick Cho has packed up and moved to California. Cho, who owes Arlington County $56,000 in back taxes from his Clarendon cafe, is trying to relaunch his coffee career in the Silicon Valley area. In addition to his Arlington debts, Cho owes D.C. about $190,000 in back sales taxes. [Washington Post]

Thank You! — A big thank you to everyone who voted for ARLnow.com in TBD’s #DCjournotweeps poll. ARLnow.com editor Scott Brodbeck narrowly edged out WTOP’s Neal Augenstein for the title of “best journalist using Twitter to cover local news.” [TBD]

Flickr pool photo by Philliefan99

Civic Federation Makes Budget Recommendations

By ARLnow.com

The Arlington County Civic Federation will discuss the county and school budgets at its monthly meeting tonight.

At the meeting, the federation’s revenues and expenditures committee will reveal its suggested modifications to the county manager’s budget.

Among the recommendations:

  • A one-time 1.6 cent real estate tax reduction. (The manager’s budget recommends that real estate taxes hold steady at 95.8 cents per $100 in value.)
  • A $250,000 allocation for basic repairs to the Lubber Run Amphitheater
  • Only $400,000 for continued operations at the money-losing Artisphere, half the amount requested by staff.
  • Rejection of $239,000 in school funds for the David M. Brown Planetarium. The Federation calls for the planetarium to be supported with county funds, not school funds.

The meeting will start at 7:30 p.m. in the Hazel Conference Center at Virginia Hospital Center (1701 N George Mason Drive).

Small Business Owners Decry Taxes, Sign Ordinance

By ARLnow.com

What’s on the mind of local entrepreneurs? A lot, as it turns out.

On Thursday night Arlington County held a small business ‘listening session’ at Clarendon Ballroom. More than 50 business owners showed up to tell county staff what they like and don’t like about how the county treats small businesses.

The event was part of County Board Chair Chris Zimmerman’s year-long push to make Arlington more small-business-friendly. Zimmerman gave the opening and closing remarks at the event, but it was county planning and economic development staff who led the group discussions that were the evening’s main substance.

Among the things business owners liked about doing business in Arlington were the friendly personal interactions with county employees, the frequent county programs that teach you how to create a business plan, and the relative ease of running a home-based business. As expected, however, complaints far out-numbered compliments.

There was discussion of the advantages larger businesses have over smaller businesses when trying to navigate the county’s regulations and talk of loosening regulations preventing small businesses from participating in certain citizen-oriented programs. By and large, however, the discussion focused on three areas: clarity and accessibility of information, taxes and fees, and the county’s controversial sign ordinance.

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Morning Notes

By ARLnow.com

Tax Rate Hearing Sparsely Attended — Compared to the three-hour, 75-speaker bonanza that was the March 22 budget hearing, last night’s County Board tax rate hearing was an intimate, low-key affair. The board heard a half hour of testimony from two polar opposite sides: those who want the tax rate lowered and those who want to see the tax rate raised. [Sun Gazette]

DCA Controller Suspended — An air traffic controller suspected of snoozing on the job while two planes landed has been suspended by the Federal Aviation Administration. While some are calling the incident a major safety failure, one retired pilot says the air safety system worked as intended when a regional air traffic controller stepped in to guide the planes. [Christian Science Monitor]

Wakefield High School Construction Approved — The school board approved the final design of a new, $115 million Wakefield High School last night. Construction on the new school is expected to begin in July. The school is designed to house up to 1,622 students, with provisions for increasing capacity beyond 2,000 students, if necessary. The current Wakefield High School, which was built in the 1950s, has a capacity of 1,797 and a projected 2012 enrollment of 1,356. [Sun Gazette]

Morning Poll: Libraries vs. Taxes

By ARLnow.com

Tonight at 7:00 p.m. the Arlington County Board will hold a hearing on its FY 2012 budget.

Although Arlington will benefit from rising property values this year in the form of higher tax collections, the Board still must make tough choices when it comes to deciding what to fund and how to fund it.

County Manager Barbara Donnellan has recommended keeping real estate taxes steady at 95.8 cents per $100 in assessed value, following a year in which the rate jumped 8.3 cents. The Board gave itself the flexibility of raising that rate slightly by advertising a 96.8 cent rate.

Meanwhile, various groups have been asking the board to increase funding their local priorities, from affordable housing to parks to helping the homeless. One group that has been particularly vocal is supporters of Arlington’s public libraries, who want to see a restoration of the library hours and materials funding after they were cut last year.

If you had to choose between a small property tax increase and a restoration of library funds, or no tax increase and no restoration of funds, which would you choose?


County Sees Revenue Loss As State Funds Dry Up

By ARLnow.com

The downturn in the economy has been unkind to the county’s finances.

Arlington has had to make service cuts in each of the past two budgets as taxes and other revenue sources dried up. After 2009, assessed property values suffered their first year-over-year decline since 1995, prompting the county to hike property taxes to make up for what otherwise would have been a dramatic loss of revenue.

When it comes to real estate taxes, the county can always increase the tax rate for an expected revenue shortfall. But one area that’s largely out of the county’s control is the funds it receives from the state. And in the past four years, overall state funding to Arlington County — excluding schools — has dropped $18 million.

County Board Member Barbara Favola cited the figure at a board meeting yesterday afternoon.

Starting in FY 2008 and up to the current FY 2011, Arlington has lost progressively more revenue each year:

  • FY 2008: -$438,214
  • FY 2009: -$2,603,394
  • FY 2010: -$7,045,368
  • FY 2011: -$7,900,610

Although state revenue still makes up about 6 percent of the Arlington’s budget, the overall decline has meant greater reliance on local sources of revenue, including taxes. As of February, state revenue was expected to decline by $600,000 to $62.6 million in the FY 2012 county budget that’s currently under consideration by the board.

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