taxes

Morning Notes

By ARLnow.com

Biden Wins Virginia — “Virginia voters have overwhelmingly given former Vice President Joe Biden a sizable win over Vermont Sen. Bernie Sanders in Tuesday’s primary election. According to unofficial state election returns, Biden has been called the winner of the state with 53.3 percent of what was a record primary turnout, and will capture the largest share of its 99 delegates.” [Patch, Washington Post]

Bernie Underperforms 2016 — In the two-way race between Hillary Clinton and Bernie Sanders in 2016, Sanders captured 33% of the vote in Arlington. Yesterday, he received 19% of the vote, a close third to Elizabeth Warren at 20%.

FAA Taking Comments on DCA Noise — “After changing the routes for planes taking off from Reagan National Airport, in Arlington, Virginia, the Federal Aviation Administration is holding a public comment period. The comment period closes March 30. In an email, Libby Garvey, chair of the Arlington County Board, said that even if people in the community submitted earlier complaints, the FAA will not be officially considering them.” [WTOP]

Tafti Defends Changes at Prosecutor’s Office — “There’s this false critique that these reforms are making our communities less safe. We’ve been fed a story for decades that we have to incarcerate and have zero tolerance in order to be safe. More and more we are finding that harm reduction — for drug use, mental illness treatment, restorative justice — is more effective.” [Arlington Magazine]

Police: Two Arrested in Stolen Vehicle — “At approximately 2:40 p.m. on March 1, officers [in Pentagon City] were alerted to a license plate reader hit on a vehicle previously reported stolen out of Washington D.C. Officers observed two subjects walking away from the parked vehicle and conducted surveillance in the area. The subjects were taken into custody without incident as they returned to the vehicle… A search of the vehicle located suspected narcotics.” [Arlington County]

Chamber Cheers Tourism Tax Bill — “The Arlington Chamber of Commerce celebrates the General Assembly’s establishment of permanent funding for tourism promotion in Arlington. This 0.25 percent Transient Occupancy Tax surcharge on hotel rooms is used exclusively by Arlington Convention and Visitors Service… to grow travel and tourism in Arlington. Previously, the tax surcharge was enacted with a July 1, 2021 sunset” provision. [Arlington Chamber of Commerce]

Bill Could Boost N. Va. Metro Funding — “Northern Virginia localities could soon have the ability to spend more money on Metro service increases after state lawmakers approved a bill that tinkers with the dedicated funding agreement for the transit agency… Virginia’s total financial contribution to Metro can’t increase by more than 3% each year, a condition designed to impose fiscal discipline on the agency. The bill from Del. Vivian Watts, D-Annandale would exempt any costs associated with service increases from that cap.” [Washington Business Journal]

Morning Poll: Should the Property Tax Rate Be Lowered?

By ARLnow.com

With rising property assessments, the Arlington County Board sees no need to raise taxes this year.

The Board on Tuesday advertised a maximum property tax rate unchanged at $1.013 per $100. The question is: should the rate be lowered?

On one hand, the rate was raised by two cents last year, and 4.3% higher residential assessments this year amid already-high property values mean the average homeowner will pay an extra $376 this year even if the rate doesn’t change. That’s higher than the expected tax burden rise in Fairfax County, even with a three cent rise in its rate. Those yearly increases in the tax burden add up. Additionally, there seems to be some wiggle room in the proposed budget.

On the other hand, the current rate is not particularly high — it’s the lowest among other major Northern Virginia jurisdictions — and those who own homes in an affluent area like Arlington are generally able to afford the extra taxes. Plus, there’s no need to adopt an austerity budget during good economic times and a development boom in a county with a growing population, ever-rising school enrollment, and Amazon in the process of moving in.

What do you think?

Photo by Sharon McCutcheon on Unsplash

Garvey Floats Potential of Tax Rate Cut

By ARLnow.com

The Arlington County Board voted yesterday to advertise a maximum tax rate that will, at most, keep the current rate steady.

The action comes amid rising property assessments that will buoy county coffers and help support County Manager Mark Schwartz’s proposed 2.9% increase in spending without a rate hike.

Arlington’s rosier financial picture, with the ongoing arrival of Amazon’s HQ2, was enough to have Schwartz smiling during a recent budget presentation, touting “a good budget year.” And it might be enough to even support a tax cut.

Arlington County Board Chair Libby Garvey pointedly floated the idea of bringing down the current $1.013 per $100 rate in her remarks yesterday.

“This year’s higher assessments mean that even without an increase in the tax rate, most homeowners still would see the biggest jump in their real estate taxes since 2016,” said Garvey, who’s facing a primary challenge this year. “Facing that reality, we will certainly be looking for ways to adopt a lower rate than what we have advertised today when we finalize the budget in April.”

The rise in assessments — 4.3% for residential properties and 4.9% for commercial properties — means more tax revenue, but also a higher tax burden on property owners.

“With no increase in the property tax rate, the County expects $51.1 million in additional ongoing revenue,” a county press release noted. “Should the Board adopt the current tax rate and other proposed fee increases, the average Arlington homeowner would see their fees and taxes increase by $376 from what they paid in FY 2020, based on a home value of $686,300.”

Last year, amid budget pressures, the County Board voted for a 2 cent tax rate increase.

Among neighboring jurisdictions in Northern Virginia, Alexandria and Prince William have both proposed 2 cent property tax rate increases this year, Loudoun has proposed a 1 cent reduction, and Fairfax County just proposed a 3 cent hike. Arlington’s rate is currently the lowest of the group.

Despite Fairfax’s proposed 3 cent hike, the increase in taxes on the average homeowner would actually be lower than that in Arlington with no tax rate change here — $376 vs. $346. Residential property assessments in Fairfax rose an average of 2.65% this year.

As part of the annual budget process, the Arlington County Board will now hold a series of work sessions and public hearings, before a final vote on the FY 2021 budget on Saturday, April 18.

More on the Board’s tax rate advertisement vote, via the county press release, below after the jump.

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‘Good News Budget’ Gives County Staff Raises, Has No Tax Rate Increase

By ARLnow.com

(Updated at 5:15 p.m.) Amazon is moving in at a quickening clip and Arlington County’s budget-makers are breathing a sigh of relief.

After a few years of tight budgets, involving tax rate hikes and a handful of county staff layoffs, “this is a good budget year,” County Manager Mark Schwartz said today, ahead of presenting his proposed Fiscal Year 2021 budget to the Arlington County Board.

That means a lack of hard choices: under the proposal, the $1.013 per $100 property tax rate remains steady, county staff — particularly public safety personnel — are getting raises, and library fines are being eliminated.

“We’ve gone through some lean years where we’ve been challenged on the revenue side,” Schwartz told reporters. “This is a good news budget, based on the fact that… we have a revenue infusion that has allowed us to do some things we just weren’t able to do before.”

In all, the $1.4 billion budget increases spending by 2.9% and anticipates a 4.6% increase in tax revenue, thanks in part to rising property assessments and a boost in business taxes paid to the county.

The average homeowner can expect to pay an extra $376 in property taxes, even with the rate holding steady. Arlington’s tax rate is lower than that of Alexandria ($1.130), Fairfax ($1.150) and Loudoun ($1.045).

After years of budget pressures caused by increases in health costs and Metro funding, among other rising expenses amid slowly-growing revenue, Schwartz struck a decidedly upbeat tone this year. He predicted future revenue growth as Amazon continues to grow its presence and other businesses flock to the county.

“The past few years we have seen the effects of a record-high commercial vacancy rate,” Schwartz said in a statement. “Now we are beginning to see the results of our commitment to economic development and spending realignments. This budget represents an investment in the cornerstones of County government with an eye toward an innovative future in Arlington.”

“We’re coming out of the trough,” Schwartz added.

Perhaps the biggest source of budget friction this year will be with Arlington Public Schools.

Schwartz is taking pains in his presentation to emphasize that Arlington County has been increasing the percentage of tax revenue it sends to the school system, a separate governmental entity. This year, under Schwartz’s budget, APS is slated to receive $550 million, up from $500 million two years ago.

Schwartz says he expects APS, with its ever-rising student enrollment, to ask for more. But the extra $17.7 million the schools are receiving this year should be more than adequate to account for the increase in students, he said.

The budget presentation notes that APS spends $19,921 per student, according to the Washington Area Board of Education formula — the highest per-pupil cost in the region.

Other highlights from the budget include:

  • An additional $9.1 million for affordable housing, including more for housing grants, rent assistance and affordable housing development.
  • A 3.25-3.5% increase in pay for general county employees and an approximately 6.5% increase in pay for public safety employees (to help, in part, with police and fire department recruitment.)
  • $49.3 million for Metro, a 4 percent increase from last year.
  • Creating a new “traffic enforcement and control” position inside the police department, with six new full-time staffers charged with enforcing things like scooters on sidewalks and cars parked in bike lanes.
  • Nine new positions in the fire department and funding for a second recruit class.
  • Eliminating library fines, as part of the county’s new focus on equity. The fines disproportionally are imposed on people of color who live on the western end of Columbia Pike, Schwartz said.
  • “Funding to phase in [County] Board member salary increases over a three-year period.”
  • Additional funding for sidewalk, street, and streetlight maintenance.

The budget focuses “on foundational area of County government” and “shores up investments in County infrastructure and core services,” Schwartz says in his presentation.

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Morning Notes

By ARLnow.com

Pentagon City Redevelopment on Pause — “Brookfield Properties has suspended plans to launch a major redevelopment of the Transportation Security Administration’s headquarters in Pentagon City once the federal agency moves to its new home in Springfield in mid- to late 2020… it’s a reflection of the new reality that Amazon’s HQ2 has created in the neighborhood.” [Washington Business Journal]

Vote on Add’l Speeding Fine This Weekend — “Currently, a ticket for going 10 mph over the speed limit in a residential zone is about $80. The additional fine would bring that ticket to $280. ‘People drive like maniacs around here. It’s about time they got some punishment,’ Arlington resident Jack Feegel said.” [NBC 4]

Arlington Resident Helps Return Lost Dog — “A lost dog was reunited with its owner thanks to a passing motorist, who noticed something unusual on their way to work, and a fellow driver farther along the road. Dashcam footage shows the unnamed motorist, from Arlington, Virginia, driving to their workplace in Silver Spring, Maryland, on January 13.” [Daily Mail]

ACFD Responds to Calls in Maryland — It’s rare for the Arlington County Fire Department to respond as mutual aid to an incident in Maryland, but it happened Wednesday morning, with several units dispatched to Prince George’s County. [Twitter, Twitter]

Arlington Tourism Tax May Be Made Permanent — “The Arlington County government looks ready to get a major present from the new Democratic majority in the General Assembly. The state Senate has passed and sent to the House of Delegates a measure that removes the sunset provision on Arlington’s authority to impose a 0.25-percent surcharge on hotel taxes to support tourism promotion.” [InsideNova]

Nearby: No Streetcar in Georgetown — “Plans to extend the DC Streetcar to Georgetown have been effectively scrapped. The District Department of Transportation is halting all work on the project ‘for the foreseeable future,’ according to documents submitted to the D.C. Council.” [WTOP]

Flickr pool photo by Rex Block

Property Values, and Thus Property Taxes, Are Rising

By ARLnow.com

The rise in property values in Arlington is accelerating post-HQ2.

Late last week Arlington County announced that its assessments for 2020 had risen 4.6% on average — 4.9% for commercial properties and 4.3% for residential properties. That compares to an average property assessment increase of 3.5% last year.

The rise in property values will almost certainly mean a rise in property taxes for Arlington residents. The county, in its announcement, seemingly discounted the idea that tax rates — currently $1.026 for every $100 in assessed value — would come down to offset the rising assessments.

“Although the growth will result in additional revenue, the County faces continued funding choices in the coming fiscal year,” the county’s press release says in the first paragraph. In November the County Board directed County Manager Mark Schwartz to propose a budget that either keeps the tax rate steady or slightly lowers it; his budget proposal will be released in February.

The county says Amazon’s arrival is at least partially responsible for rising property values, though apartment buildings accounted for much of the commercial assessment increases.

Commercial property values were driven by a decline in the office vacancy rate, continued new construction, demand for rental properties, and Amazon-related leasing activity. Apartment property values increased by 8.9 percent, office values increased by 2.5 percent, and general commercial property (malls, retail stores, gas stations, etc.) grew by 1.8 percent.

“Arlington continues to be a place where people want to live and work,” Schwartz said in a statement Friday. “The investment we make in our community through real estate tax revenue helps us maintain the high-quality amenities and public services that make Arlington so attractive.”

The full press release is below, after the jump.

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EXCLUSIVE: Dorsey Says He Should Have Revealed Bankruptcy Earlier

By ARLnow.com

(Updated at 4:15 p.m.) Arlington County Board Chair Christian Dorsey says he should have, upon reflection, informed the community about his personal bankruptcy filing before November’s election.

Dorsey, who was sworn in for a second term last night, answered a series of questions from ARLnow about his bankruptcy, which was first reported by the Washington Post a few days after the election.

The Post reported in November that Dorsey, 48, “filed for bankruptcy last month after falling behind on his mortgage and accruing tens of thousands of dollars in credit card debt.” The paper noted that the bankruptcy filing came as Dorsey’s South Arlington home was facing possible foreclosure and as his wife dealt with health problems.

Questions have arose in the wake of the bankruptcy revelation. For one, given that the filing was made on Oct. 16, should voters have been informed prior to the Nov. 5 election?

Dorsey tells ARLnow that he now regrets not letting people know despite how personal the issue is for him and his family.

“In retrospect, I should have had a conversation with the community, no matter how difficult, when I filed for bankruptcy in mid-October,” Dorsey said via email Thursday evening. “I do believe, however, that I will demonstrate over the next four years that those who voted for me did not make a mistake.”

Dorsey was also asked about an assertion made by the bankruptcy trustee that he had not submitted his previous year’s state income tax return. Dorsey contended that he did, in fact, file his state taxes.

“I filed, yet I discovered at my bankruptcy hearing that the Commonwealth has no record,” he said. “I have resubmitted my 2017 filing.”

(By law, Virginia’s state tax office is prohibited “from providing information or commenting on specific taxpayer situations,” a spokeswoman said.)

Court documents show that Dorsey expects $5,000/mo in “other income” besides his annual County Board salary of just over $60,000. The bankruptcy trustee objected to that, writing that the $5,000/mo figure “has not been documented or verified.” Dorsey says that income comes from consulting work.

“I do policy and communications consulting,” he said. “I am not comfortable talking about my clients within the context of your article, but attest that they are exclusively 501(c)3 non-profits, political non-profits, philanthropic foundations and universities.”

“None are foreign entities,” Dorsey added. “None do business with Arlington County. None have given to my political campaigns.”

Dorsey’s most recent conflict of interest form filed with the Clerk of the County Board discloses outside work with a pair of firms that paid him more than $5,000 annually: KNP Communications and Upswing Strategies, both in D.C.

Though serving on the Arlington County Board is ostensibly a part-time job, Dorsey’s work for Arlington extends beyond the County Board dais to representation on a number of regional bodies. Dorsey serves on the Washington Metropolitan Area Transit Authority (WMATA) Board, is a commissioner on the Northern Virginia Transportation Commission (NVTC) and represents Arlington on the Board of Directors of the Metropolitan Washington Council of Governments (COG).

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County Board: No Property Tax Rate Hike Next Year

By ARLnow.com

(Updated at 12:05 p.m.) The Arlington County Board is asking the County Manager for a budget that contains no property tax rate hike and maybe even a rate cut.

Members gave their Fiscal Year 2021 guidance to County Manager Mark Schwartz at last night’s recessed Board meeting.

The guidance for reducing the tax rate or keeping it steady will likely not, however, result in lower tax bills, as property assessments are expected to continue to rise in the wake of Amazon’s arrival. The average real estate assessment is expected to jump 4-6 percent next year.

A budget forecast paints a rosy picture of Arlington’s post-HQ2 economy, with business tax revenue expected to grow as well, though budget pressures of Metro, county employee compensation, needed stormwater improvements and flood mitigation, and a growing school population remain.

The Board also took action last night on the affordable housing front, asking the manager for options that could hike the county’s annual Affordable Housing Investment Fund contribution to as high as $25 million from the current $16 million. Additionally, the Board largely accepted Schwartz’s recommendation to carryover unspent funds from the last budget to the new budget and to reserve funds, but set aside $500,000 for emergency housing assistance.

“The Board understands that anticipated increases in property assessments could have a real impact on residents,” Arlington County Board Chair Christian Dorsey said in a statement. “We want the Manager to come back to us with a proposed budget with no increase in property tax rates and to consider a reduction in the tax rate if possible. Our guidance to the Manager also emphasizes the need to invest more in preserving and creating affordable housing in Arlington, including housing affordable to extremely low-income families.”

The manager will present his proposed FY 2021 budget in February, after a months-long public budget process, which will then continue through the Board’s budget adoption in April.

More from an Arlington County press release, after the jump.

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Morning Notes

By ARLnow.com

Amazon Tweaking HQ2 Heating Plan — “Amazon.com Inc. confirmed it will tweak some elements of its HQ2 plan in Arlington County to eliminate a carbon dioxide-emitting system. The news comes a little more than a week after CEO Jeff Bezos announced in D.C. plans to end the company’s reliance on fossil fuels in a decade.” [Washington Business Journal]

County Tax Deadline Coming Up — “Taxes are due soon! If you have moved or sold your car, you may still owe taxes for the months when your car was in Arlington. If you are waiting for account adjustments, still pay your bill in full by Oct. 5. Overpayments will be refunded.” [Twitter]

Video: Ovi at ATS — Arlington Public Schools has released a video from Caps star Alexander Ovechkin’s recent visit to Arlington Traditional School. “Hi kids, I think it’s breakfast time for you, no?” Ovechkin asked as he pushed a grocery cart full of Ovi O’s cereal into a classroom. [Vimeo]

Dorsey to Talk Racial Equity at Church — “Christian Dorsey, Chair of the Arlington County Board, will be speaking about racial equity at Rock Spring Congregational United Church of Christ, 5010 Little Falls Road, at 7:00 p.m. Monday, October 7.” [Press Release]

New Daycare Center Near Fairlington — “As Alexandria struggles with affordable daycare, a new facility is in the works near the Fairlington neighborhood. A special use permit has been filed for Our First Step Daycare Center, a new daycare center planned for 2500 N. Van Dorn Street.” [ALXnow]

Ever Have a Dream Like This? — Updated at 8:35 a.m. — “Scanner: Police responding to S. Four Mile Run Drive for a report of a naked woman who walked on to an ART bus then walked right back off.” [Twitter]

Flickr pool photo by John Sonderman

One More Page Passes Fundraising Goal, Pays Bills

By Airey
1/3

Local bookstore One More Page (2200 N. Westmoreland Street) will be able to pay the bills after all, thanks to its auction last month.

“We received donations of wine, window washing service, and many other items,” said owner Eileen McGervey, of the items the store auctioned off. “It was really quite overwhelming.”

In total, the online auction raised $20,374.32, passing its goal of $20,000.

The highest bid item was an original cartoon by the late Richard Thompson, which was donated by his wife Amy Thompson — it sold for $1,111.50. The item the fetched the second highest bit was naming rights to a character in the the Wine Country mystery series by Ellen Crosby, which sold for $725.

McGervey described the auction as a “wonderful success” to ARLnow and said the money raised was enough to cover the vendors she wasn’t able to pay after the building owner raised her rent by 30 percent in July. The spike in rent was caused largely by changes to the county’s real estate valuation method for the type of condominium building that houses One More Page.

The building’s property tax liability more than doubled this year, even after an appeal that knocked $700,000 off the valuation.

Arlington County Board Chair Christian Dorsey tells ARLnow he has been working with the parties involved to try to make sure One More Page could meet its obligations and stay in business.

“Shortly after this issue raised itself in the public eye, I spoke with the owner and we tried to see what we could do and what would be available,” Dorsey said.

Dorsey encouraged any small businesses affected by the real estate valuation change to contact Arlington Economic Development’s BizLaunch division.

Dorsey said he was “deeply sympathetic” to the bookstore’s plight, noting that the establishment is one of his family’s favorites. But he added that the valuation changes was necessary because “for years we were not taxing at the appropriate levels, which create larger issues of equity.”

In the meantime, McGervey said that the bookstore is looking into holding more events to help it stay afloat. She’s also started a Patreon membership program after would-be auction buyers said they were interested in supporting the bookstore that way.

“The whole experience has invigorated us and our customers to make sure we stay here,” McGervey said.

Morning Notes

By ARLnow.com

Arlington: Most Competitive Housing Market in U.S. — “The most competitive U.S. housing markets are the two that are closest to Crystal City, home of Amazon’s upcoming second headquarters (HQ2) in Virginia: Alexandria and Arlington. This is according to the latest ranking of cities by Redfin Compete Score.” [Redfin]

County Hits Record Low Tax Delinquency — “Treasurer Carla de la Pava announced that the delinquency rate for real estate and personal property had fallen to 0.177 percent, down from 0.21 percent a year before and the lowest not just in county history, but perhaps the lowest ever among any jurisdiction in Virginia history.” [InsideNova]

AWLA Hosts Successful Adoption Event — “40 cats and 14 dogs found their forever homes at [Saturday’s] Clear The Shelters event! Thank you to everyone who found space in their hearts and homes for our animals today.” [Facebook]

Flickr pool photo by Erinn Shirley

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