Arlington Real Estate Still Hot — “Even as much of the rest of Northern Virginia is showing signs of cooling interest from prospective real-estate purchasers, many parts of Arlington remain hot-hot-hot even as the temperature gets cold-cold-cold. A number of those Arlington locales are among the strongest in the region.” [Sun Gazette]
Police: Don’t Leave Your Car Running — “The Arlington County Police Department is warning against leaving vehicles running unattended and is sharing crime prevention tips to help combat auto thefts. During the month of December, the police department has investigated five reports of idling vehicles being stolen. In all reported cases, the victims were running short errands – such as picking up food or making a purchase at a convenience store.” [ACPD]
APS Winter Break Starts Monday — From Arlington Public Schools Superintendent Francisco Durán: “I wibagsh you a great Winter Break, December 20-31! Thank you for allowing us the opportunity to serve Arlington students, and thank you for your partnership and support for Arlington Public Schools. In the spirit of the holiday season, I want to share this video message about kindness from students and staff.” [YouTube]
Reminder: Bag Tax Beginning — “Beginning Jan. 1, a disposable plastic shopping bag will get a 5-cent tax across much of Northern Virginia including Arlington County.” [Twitter]
It’s Thursday — Today will be mostly sunny and a bit breezy, with a high near 64. Sunrise at 7:20 a.m. and sunset at 4:47 p.m. Tomorrow will be partly sunny, with a high near 62, with rain likely at night. [Weather.gov]
Airbnb is the only major homestay platform not paying a tax levied on third-party lodging providers in Arlington County, ARLnow has learned exclusively.
Taxes under the new system were due on Oct. 20, and so far, Airbnb — the platform with an outsized share of Arlington’s short-term rentals — has yet to comply. Homestay platform Vacation Rental By Owner (VRBO), by contrast, appears to be complying.
“As of now, Airbnb is the only major homestay platform operator that has not complied with the new state law,” Susan Anderson, the communications director for the Office of the Commissioner of Revenue, tells ARLnow. “We are aware that other localities are also experiencing the same issue.”
Arlington has 840 active homestay rentals listed on either Airbnb and VRBO, and Airbnb listings comprise 82% of rentals, with another 10% listed on both platforms, according to short-term rental data company AirDNA. That means the county could be losing out on significant tax income each month.
The tax comes out to 8.25%, including a 5% county TOT, a 0.25% local tourism TOT and the state’s 3% regional TOT.
Anderson said the office cannot disclose how much Airbnb owes due to a state law that prohibits the release of such information about individual taxpayers. However, we are told the office continues to assess Airbnb for the tax each month and is working to bring the lodging company into compliance.
A back-and-forth between county tax collectors and Airbnb appears to have been going on since at least Oct. 11, when the county notified Airbnb of its obligations in writing, per a copy of the letter obtained by ARLnow.
“The Commissioner of Revenue’s legal counsel has advised the company of its obligations and staff continues to follow up to ensure compliance,” Anderson said.
The Commissioner of Revenue has the power to determine how much should have been collected and can assess Airbnb for owed taxes, said William J. Burgess, the deputy commissioner and legal counsel for the Office of the Commissioner of Revenue.
The Arlington County Treasurer’s Office, meanwhile, “has the power and responsibility to collect payment of delinquent amounts,” he added.
Airbnb claims it hasn’t paid the TOT tax yet because of “ambiguity” in the state law. The company says it does not have the authority to collect this tax and has just started having conversations aimed at reaching a “technical solution” allowing it to collect this tax.
“Airbnb believes in helping our community pay taxes, and we have been collecting and remitting Virginia state sales tax on behalf of our Hosts since 2019, like we do in thousands of jurisdictions around the world,” said Laura Rillos, an Airbnb spokeswoman. “Unfortunately, as written, SB 1398 does not legally authorize Airbnb to collect and remit local transient occupancy taxes.”
“We are committed to working with lawmakers and stakeholders to find a technical solution so that all platform businesses have a basis to collect under the law,” Rillos continued. “We remain committed to working with communities and stakeholders across Virginia to support tourism recovery and help deliver these important tourism dollars.”
One local host who has been following this issue closely, reaching out to the county and Del. Patrick Hope (D-47) to see what is being done to get Airbnb in compliance, told ARLnow that the county could be getting shortchanged by hundreds of thousands of dollars.
“Airbnb was actually not collecting TOT from my guests, or guests in Arlington in general, as the company should have been,” said Diane Page, who has been letting out a suite attached to her Arlington Forest house since 2017. “I knew this because I saw my guest invoices, and when I randomly looked at other private (not corporate) Airbnb listings in Arlington, saw that Airbnb was not charging TOT.”
Using AirDNA data, Page estimates that the county could be missing out on more than $100,000 a month in taxes from Airbnb.
The Arlington County Board has tweaked an existing lodging tax, making sure it covers the entire bill.
The Board passed the measure Saturday, which means the existing 5.25% tax affecting hotels and other lodging will also now apply to any accommodation fees charged by intermediaries, such as Airbnb and online booking sites.
“Before, transient occupancy taxes were collected and remitted… by hotels and other lodging providers based on the amount of the room charge paid by the guest,” county spokesperson Cara O’Donnell said in an email.
Last year the state legislature updated the law authorizing a Transient Occupancy Tax, which is paid by lodging customers, allowing localities like Arlington to make the change. It also requires that a portion of proceeds be sent to the Virginia Tourism Authority.
For Arlington County’s tax, just under 5% of the money collected will go to promote tourism and business travel in Arlington.
The update also suggests that intermediaries, such as online companies, will have to collect and send the tax to the government.
It wasn’t immediately clear whether that means Airbnb hosts with smaller rental setups will no longer have to file monthly tax reports.
The Arlington County Board adopted the tax during its public hearing on Saturday — the same day that the Alexandria City Council enacted the tax as well. These votes come on the heels of Fairfax County, which adopted the tax last Tuesday.
Effective Jan. 1, 2022, all three jurisdictions will tax plastic bags from grocery stores, convenience shops and drugstores. The county said in a press release that it’s been working with Alexandria, Fairfax and a regional waste management board to make sure all three localities have similar outreach and education efforts and timelines for rolling out the tax.
“Arlington is proud to take this step to reduce plastic bag waste in our community and to do so with our regional partners,” said Arlington County Board Chair Matt de Ferranti said in a statement. “We have long sought the legal authority for this small fee as a way to protect our environment and become a more sustainable community. We look forward to working with residents and neighbors on implementation.”
Until Jan. 1, 2023, retailers can keep two of the five cents collected for each plastic bag. After that date, retailers and keep one cent per bag.
Revenue can be used to offset environmental cleanup, educational programs around reducing waste and mitigating pollution, or providing reusable bags to recipients of Supplemental Nutrition Assistance Program, or SNAP, and recipients of Women, Infants, and Children Program, known as WIC, benefits.
The county is considering distributing reusable bags at public facilities, the Department of Human Services, affordable housing complexes and farmers markets.
“This is not high-cost and it could be big-impact,” said Deputy County Manager Michelle Cowan.
The tax will not apply to restaurants, farmers markets, clothing stores, Virginia ABC stores and other alcoholic beverage retailers. Bags for wrapping meat, holding produce, protecting dry cleaning and packages of garbage and pet waste bags are also exempt.
“I don’t want to lose sight of what more the Commonwealth can do. It’s not just including the entities that are currently exempt from this go-round, but thinking about this more broadly,” County Board member Christian Dorsey said during the meeting. “Communities that have more successfully changed behavior, which is what this is ultimately getting at… ones that have been most effective have not just looked at plastics, they’ve looked at all bags at the point of sale.”
It’s the End of Summers — The former Summers restaurant in Courthouse was torn down yesterday, making way for a new apartment development. Video of the demolition shows water being sprayed to control dust as the building was razed. [Twitter]
Staffing Concerns At 911 Dispatch Center — “The head of Arlington, Virginia’s Emergency Communications Center is addressing concerns that its current setup is problematic and even potentially dangerous. ‘We are like every other 911 center in the country, which has traditionally struggled with staffing,’ center administrator Dave Mulholland told WTOP. ‘We’re going to be very honest in acknowledging not every shift has optimal staffing.’ However, Mulholland maintains that crucial positions have always remained filled, and that more people are being trained to fill needed roles.” [WTOP]
Lebanese Taverna Helping to Feed Refugees — “When word came that thousands of Afghan refugees would be landing at Dulles in late August after their country fell to the Taliban, World Central Kitchen mobilized to make sure those reaching the U.S. after a harrowing journey would be greeted with a hot meal. The nonprofit’s first call was to Grace Abi-Najm Shea, one of five siblings behind Lebanese Taverna… Of the 61,298 meals WCK served there between Aug. 25 and Sept. 10, 5,037 came from Lebanese Taverna.” [Washington City Paper]
County Board May Modify Hotel Tax — “Arlington County is weighing whether to tax hotel guests for the total cost of their stay, including fees and other charges, and not just the cost of the room. The potential change to the transient occupancy tax — the revenue from which has collapsed amid the pandemic, affecting Arlington’s incentive arrangement with Amazon.com Inc. — follows changes to the tax definition in the state code adopted by the Virginia General Assembly.” [Washington Business Journal]
Much of Crystal City Is Now Carbon Neutral — “JBG SMITH, a leading owner and developer of high-quality, mixed-use properties in the Washington, DC market, today announced it has achieved carbon neutrality across its entire 16.1 million square foot operating portfolio. Building on this accomplishment, JBG SMITH intends for its properties to maintain carbon neutral operations annually.” [BusinessWire]
Tucker Rants About Beyer — Fox News opinion host Tucker Carlson called Rep. Don Beyer “a fashionably radical car dealer from Arlington” on his show earlier this week, in a segment about vaccine mandates. But Beyer’s communications director says that the local congressman, who is actually an Alexandria resident, “does not own any auto dealerships and has not for years.” [Twitter]
Harris Teeter Stores Cutting Hours — “Harris Teeter stores nationwide will be reducing their store hours until further notice, citing the shortage of labor caused by the COVID-19 pandemic… Starting Wednesday, Sept. 15, all Harris Teeters will be open from 6 a.m. to 9 p.m. Stores in Northern Virginia have previously been open 24 hours, or until 11 p.m.” [InsideNova]
The Arlington County Board is set to vote on adopting a 5-cent tax on disposable plastic shopping bags at its meeting next week.
Last March, the Virginia General Assembly gave municipalities the option to levy the tax with revenues earmarked for local environmental education and cleanup. The County Board discussed enacting a tax last year, but put it off over concerns about how this would financially impact low-income residents during the pandemic.
Now, the county is looking to tax plastic bags issued at grocery, convenience and drug store checkouts to help “reduce pollution and protect natural landscapes.” Similar efforts are underway in Alexandria and Fairfax County, meaning much of Northern Virginia could see a tax in effect by January 2022, the county said in a press release.
“The tax gives shoppers an incentive to bring their own reusable totes rather than accept single-use disposable plastic that can wind up polluting local waterways or simply tossed in with trash destined for incinerators and landfills,” it said.
Currently, Arlington’s residential recycling program does not accept plastic bags because they can damage sorting equipment, the county said. Many large supermarkets do offer bag bag drop-off bins, and some retailers in Arlington have given shoppers a checkout discount for using reusable bags.
Exempt from the tax will be: paper bags; task-specific bags, like those used for holding meat and seafood, vegetables and protecting dry cleaning; and bags that are products for purchase, like trash and pet waste bags.
Retailers who collect the tax can keep two cents per bag for the next two calendar years, and then one cent per bag in subsequent years. Collection is overseen by the state Department of Taxation, which then distributes revenues for localities to administer.
The county will develop strategies to address the equity impacts of this proposed change, Department of Environmental Services spokesman Peter Golkin tells ARLnow.
“We are pleased that the legislation allows proceeds of the tax to fund the purchase of reusable bags for WIC and SNAP program beneficiaries and we anticipate expanding that to others in our community,” he said.
This fall, the county will embark on an education campaign to help residents understand the program and its environmental benefits.
When the County Board last discussed the plastic bag tax in October 2020, staff had drafted a timeline for implementing it by summer of 2021. But Board members cautioned moving too quickly and not considering the unintended consequences on those who are vulnerable and low-income — especially during the pandemic.
“The most vulnerable suffer the most from pollution and will suffer the most when we try to clean it up,” Board Chair Libby Garvey said at the time. “We’re going to try and do it right and be aware of the pitfalls, and there are a lot.”
The public will be able to comment on the proposed tax at next Saturday’s meeting, before the Board vote.
Kitten Rescued from Van — ” Caroline Elpers, a deputy animal control officer with Arlington County, responded to a call from a woman on Aug. 15. The woman said she was walking her dog and she’d heard the mewing of a cat coming from the inside of a van parked on the street. ‘Initially, the call stated that the cat was in the van,’ Elpers said, who arrived on the scene around 10 a.m. ‘Once I got there, it was apparent that the cat was underneath the van, running under and into the engine.'” [Patch]
Pandemic Doesn’t Stop Tax Collection — “Over the past year, staff of the Arlington treasurer’s office has been tasked with collecting $997 million in taxes due on real estate and personal property (both vehicles and business property). To date, more than $995 million of it is in hand. Treasurer Carla de la Pava on Aug. 16 confirmed to the Sun Gazette that the county’s tax-delinquency rate for the past year stood at 0.18 percent, a near-record.” [Sun Gazette]
New Faregates Coming to Local Metro Stations — “Work is also underway to replace the faregates at 13 additional stations, with new faregates being phased in as they are completed and ready for service. Eastern Market and Forest Glen are expected to be completed within the next week. That will be followed by the completion of Friendship Heights, Crystal City, Capitol South, the north entrance of Union Station, Arlington Cemetery, National Airport, and Addison Road in the coming weeks.” [WMATA]
New Pro-People Coalition Launches — “The National Landing Business Improvement District (BID) partnered with local stakeholders today to launch the ‘People Before Cars’ Coalition to unite area organizations around shared priorities to create a safer and more accessible transportation network in National Landing.” [Press Release]
N. Va. Gov’ts Welcome Afghan Refugees — “The Northern Virginia Regional Commission… issued a statement regarding regional refugee resettlement on Tuesday. ‘Citizens of Northern Virginia are following with great concern and compassion the evacuation of Afghan refugees by the brave men and women of our Armed Forces and civilian agencies,’ the statement read. ‘We welcome our new neighbors and wish them much success as they transition to a new life here in the region and across the United States.'” [Prince William Times, Twitter]
N. Va. School System Goes Virtual Only — “Rappahannock County Public Schools on Monday announced that the schools will switch to virtual learning for the remainder of the week while officials work to create a new system to mitigate spread of COVID-19 as the virus has created a flurry of cases within the schools since the academic year began… Officials said a high number of flu cases reported in the schools was also taken into account when deciding the closure.” [InsideNova]
This weekend, locals can stock up on virtually everything needed to batten down the hatches in the event of a natural disaster, or to go back to school, without paying Virginia sales tax.
Hurricane season, which will last through Nov. 30, is about to reach its peak, with 15-21 tropical systems potentially forming this year. People can get a host of hurricane readiness products sales tax-free through Sunday.
The tax exemption is part of Virginia’s Sales Tax Holiday, when folks can buy certain emergency and school supplies, as well as energy-saving devices, sales tax-free. The holiday started this morning (Friday) and will last until 11:59 p.m. on Sunday. People can save between 3.5-7% this weekend, according to a video about the holiday produced last year.
In addition to hurricanes, over the years, Arlingtonians have had to be prepared for massive floods, hurricanes, earthquakes big and small, and even tornadoes, as well as the local power outages caused by high winds and rainstorms over the last year.
With back to school around the corner, folks can buy anything from scissors, tape and glue to socks, shoes and uniforms, as well as hand sanitizing soap and disinfecting wipes. Other cleaning supplies and personal protective equipment, such as masks, however, are exempt.
Energy Star or WaterSense products, such as toilets, faucets and refrigerators, are eligible of they cost less than $2,500 per item and are purchased for noncommercial home or personal use only.
Free Cinco de Mayo Rides — “Offered by the nonprofit Washington Regional Alcohol Program (WRAP), the 2021 Cinco de Mayo SoberRide program will be in operation beginning at 4:00 pm this Wednesday, May 5, 2021 (Cinco de Mayo) and operate until 2:00 am on Thursday, May 6, 2021 as a way to keep local roads safe from impaired drivers during this traditionally high-risk holiday.” [Press Release]
Extra ACPD Traffic Enforcement — From the Arlington County Police Department: “As part of the regional Council of Governments StreetSmart campaign, officers conducted high visibility speed enforcement along Lee Highway today. With warmer weather upon us, there is increased pedestrian and cyclist traffic in the County. Remember to slow down, obey posted speed limits and remain alert for other travelers.” [Facebook]
School Board Hopefuls On Math Controversy — “With the Virginia Department of Education under attack – fairly or unfairly – for what critics say is an attempt to dumb down math instruction across the commonwealth, the two candidates for the Democratic endorsement for Arlington School Board gave state officials neither a rousing endorsement nor a ringing denunciation in a recent forum.” [Sun Gazette]
Critic Praises Local Restaurant — “Every once in a while, a restaurant comes along that checks off so many boxes, you wonder if it had taken a poll of diners’ wishes. Right now, that restaurant is a place in Arlington that combines a warm welcome with good food in a spot that locals might recall as a former paint store or a chocolate factory… Ruthie’s All-Day.” [Washington Post]
Covid Concerns for Local With India Ties — “Singh, a 28-year-old consultant, walked her dog in her Arlington, Va., neighborhood where people lined up to get inside a rooftop tiki bar and a group pedaled by on a party bike, drinking beer. She returned to her apartment and stayed up until 2 a.m. scouring Instagram for phone numbers of Indians who might have oxygen and getting no replies to a flurry of messages. Singh is among thousands of Americans struggling to help Indian relatives survive a catastrophic coronavirus surge that has caused the health care system to collapse.” [New India Times]
Nearby: Fairfax Co. Lowers Tax Rate — “Fairfax County adopted a budget Tuesday that lowers the residential property tax rate… the tax rate drops by a penny to $1.14 per $100 of assessed value. Prince William County officials also recently shaved a penny from their tax rate, now at $1.115 per $100 of assessed value. Loudoun County lowered its rate by 5 .5 cents, to $0.98 per $100 of assessed value, while Arlington County froze its rate at $1.013 per $100 of assessed value.” [Washington Post]
Last week, the Arlington County Board approved a new budget that holds the current real estate tax rate steady.
In some ways, that’s a win given the fears of a pandemic-caused budget crunch. Tax revenue ended up coming in above estimates and federal funding freed up million in local funds. Instead of making significant budget cuts, as originally feared, the Board was able to add in numerous initiatives, paid for with one-time funding.
The budget maintains the current base real estate tax rate at $1.013 per $100 in assessed property value, a de facto tax hike for most homeowners given that residential property assessments up are 5.6%. Assessments on commercial property, including office buildings, slumped 1.4% this year.
Some called for the Board to lower the property tax rate, as Loudoun County is doing and Fairfax County is considering, “to provide relief to homeowners hit by rising assessments.” In the end, the Board decided to do more rather than less, keeping the tax rate where it is and adding funding for things like housing, hunger, fiscal reserves, and raises for county employees.
Perhaps there is a calculation here, that an expected strong economy will further buoy tax revenue and property assessments over the next year, and that the next (FY 2023) budget is the time to trim the tax rate a bit, rather than now when many are still suffering as a result of the pandemic.
The majority of Arlington homeowners will face higher property taxes, after the County Board approved a budget that holds the property tax rate steady.
The Fiscal Year 2022 budget includes $1.4 billion in spending, a 3.5% increase from last year’s budget. Of that, $530 million will go to Arlington Public Schools, which will pass its final budget next month.
Earlier this year County Manager Mark Schwartz proposed a budget that would have only boosted spending by 1.4%, calling it a “transition budget” appropriate for the challenges presented by the pandemic.
The new county budget includes millions in additional expenditures, thanks to higher-than-expected business tax revenue and an expected $46 million in federal funding for Arlington’s local COVID-19 response from the American Rescue Plan, to be split between this year’s and next year’s budgets.
Among the additions, according to a County Board report posted the same day as Tuesday’s meeting:
Increasing the bonus for employees to approximately $900/net ($2,653,965); Fully replenishing the Stabilization Reserve that was utilized to balance the FY 2021 and FY 2022 budgets ($7,841,608); Funding technical support for financial/human resources system ($240,000); Increasing funding for Libraries to support materials collection ($100,000); Supporting tree pruning by shifting cycle from 17 to 9.5 years ($200,000); Providing funding for a vehicle for the Urban Forester position ($55,000); Restoring outreach program recruitment funding for Police Department ($187,350); Funding the purchase and installation of 13 charging stations for electric vehicles to prepare for increase in electric vehicle purchases in the upcoming year ($250,000) and providing supplemental funding of $33,000 to increase the number of electric vehicles purchased in FY 2022 (6 additional vehicles); Funding the County Manager’s Contingent ($2,500,000); Increasing funding for the Affordable Housing Investment Fund, bringing the total in the FY 2022 budget to $16.9 million ($7.9 million one-time and $9.0 million in ongoing); Restoring $2.6 million of PAYG funding, adding $2.0 million for facility renovations, and funding the installation of gender-neutral restroom signage in County facilities ($145,000); Funding Arts Resiliency grants ($50,000); Provide additional support for the Restorative Arlington initiative ($50,000); Maintaining alternative COVID eligibility criteria for existing recipients of housing grants ($1,036,512); Providing additional funding for the airport noise study ($50,000); Arlington Public Schools (APS): one-time funding requests for Summer School Incentive Payments ($605,000) and costs of opening Cardinal Elementary School ($882,940) and the Education Center ($750,000); Funding an analysis of the budget based on Equity Metrics ($50,000); Expanding access to early voting on two Sundays in advance of the November election ($50,000); Providing a one percent salary increase for all employees and shifting pay ranges by one percent for public safety and five percent for general employees ($2,420,332); Funding 1.0 permanent and 3.0 temporary FTEs for the Fire Department’s implementation of the Emergency Triage, Treat, and Transport (ET3) program with costs covered by program revenue ($270,000); Increasing funding to the Lee Highway Alliance by $25,000 to match total FY 2021 funding of $85,500; Purchasing additional databases for small businesses to assist with pandemic recovery ($40,000); Funding redaction software for the body worn camera program for the Commonwealth Attorney’s Office ($33,500); Funding to support prevailing wage administration ($168,600); Funding an additional Urban Forester position for the Department of Parks and Recreation ($105,000); Restoring funding for the Virginia Cooperative Extension ($63,682) and Northern Virginia Conservation Trust ($90,159); Funding additional Police Practices Group recommendations ($90,000); Adding a fifth Court Clerk (1.0 FTE) and an additional Land Records position (1.0 FTE) to the Circuit Court ($87,416); Restoring previous one-time funding with ongoing support to Arlington Independent Media ($70,000); Restoring funding for an Administrative Assistant position in the County Board Office ($90,000); Reducing client’s income contribution towards rent from 40% to 30% for the Housing Grants Program ($487,713)
The budget also includes $2.8 million for some one-time Arlington Public School projects.
“After a lengthy public review process that included work sessions, public hearings, input from residents, employees, boards and commissions, and updated revenue forecasts based on the third quarter update, the County Board, after deliberations, has approved a balanced budget for FY 2022,” says the Board report. “The budget continues funding for core County services and Arlington Public Schools; it provides additional funding for a variety of critical County programs and one-time APS costs related to opening Cardinal Elementary and the Ed Center, summer school incentive payments, and virtual school in the fall.”
The budget maintains the current base real estate tax rate at $1.013 per $100 in assessed property value, a de facto tax hike with residential property assessments up 5.6%. Assessments on commercial property, including office buildings, slumped 1.4% this year.
There was little additional discussion as the Board voted on the numerous individual budget items.
At a recent tax rate hearing, a few people called for the Board to lower the property tax rate, as Loudoun County is doing and Fairfax County is considering, “to provide relief to homeowners hit by rising assessments.” The real estate tax is expected to generate just over $800 million in revenue in Fiscal Year 2022, which starts July 1.
The Board also voted last night to raise the stormwater tax by $0.004 per $100 of assessed value to support stormwater improvements, and to slightly decrease the annual Household Solid Waste Rate from $319.03 to $318.61.
Other highlights of the new budget including affordable housing funding and housing grants; grants for small businesses affected by the pandemic; implementing recommended policing changes, including funding a civilian mental health crisis response team; electric vehicle charging stations and county fleet purchases; raises and bonuses for county employees; and the opening of the new Long Bridge Park Aquatics and Fitness Center and Lubber Run Community Center.
The full county press release about the budget is below, after the jump.