The auction will be held at 11:00 a.m. on Friday, June 28, in Room 109 of the county office building at 2100 Clarendon Blvd.

The approximate location, size and value of the properties are:

• 3600 block of S. Four Mile Run Drive near Shirlington (0.061 acres, assessed at $233,300)
• 3000 block of 17th Street S. in Nauck (3,750 square feet, assessed at $144,400)
• N. Cameron Street in Hall’s Hill (7,994 square feet, assessed at $418,200)
• N. Colonial Terrace in North Rosslyn (0.1133 acres, assessed at $370,100)
• S. Nelson Street in Douglas Park (1,972 square feet, assessed at $8,900)

From an Arlington County Treasurer’s Office press release:

Properties qualify for the judicial sale process once they are delinquent for 2 years or more following December 31. The Treasurer hopes to recover the delinquent taxes against the five properties that will be offered for sale on that day. In aggregate, the five properties owe taxes, penalties, interest and fees totaling more than $130,000.

The Office of the Treasurer has worked diligently to collect delinquent taxes throughout the county. The Treasurer’s Office has an annual collection rate of more than 99.8% on real estate taxes, perhaps the highest in the State. “While we are extremely proud of our collection rate,” said County Treasurer Frank O’Leary, “sometimes, taxes are not paid and the owners of a parcel or their heirs cannot be located. In these cases, the judicial sale process is the only way for the County to recover the taxes. We are looking forward to new owners putting these properties to productive economic or residential use, which will benefit all of Arlington.”

The Treasurer coordinates the tax sale process with the law firm of Taxing Authority Consulting Services, PC, whose fee is paid by the delinquent taxpayer or from the proceeds of sale.

“This is a rare opportunity for people to participate in a real property auction in Arlington,” O’Leary said, “We encourage interested parties to join us on June 28th, either in-person or online. It should be an interesting, and perhaps even exciting, event.”

For additional information about the terms and conditions of sale, you can visit: http://taxsales.taxva.com. To participate in the auction online, please visit: http://www.rasmus.com/auction_detail.php?id=204700.

The Board discussed the matter in a closed session before unanimously approving it. According to County Attorney Stephen MacIsaac, it is standard procedure for the Board to discuss a grant behind closed doors. The grant agreement will be made public once the county attorney finalizes it.

County Manager Barbara Donnellan said the grant will help bring the theater current with real estate taxes owed to the county. Funding for the grant was provided from budget savings identified at the end of Fiscal Year 2012.

The Arlington County Department of Management and Finance indicates the grant includes around $85,000 for past due real estate and business tangible taxes, $99,000 for the next two payments of real estate taxes and around $30,000 for the next business tangible tax payment. The remaining $35,000 will either help fund a financial consultant study or go to future tax payments.

Signature Theatre has sole access rights and branding capability in its current space within a county owned building. It is responsible for the full costs of operating that facility, including real estate and business tangible taxes. Other county supported arts groups performing in county subsidized spaces are not required to pay taxes.

“Signature is thriving, and has a great future ahead of it,” Donnellan said. “This grant addresses an immediate, short-term need by providing temporary relief from a tax burden that is not shared by other supported arts groups.”

The county emphasizes that the theater is a cultural anchor for Shirlington and provides financial benefits to the community. It estimates that more than $150,000 in annual sales and meals taxes can be directly attributed to Signature’s presence in Shirlington.

Signature faced several debt-related lawsuits in Arlington General District Court last year, including claims from Waste Management, Conde Nast Publications and the Delancey at Shirlington Village apartment building. The Waste Management and Conde Nast claims were eventually dismissed. The court ruled in favor of Delancey at Shirlington Village.

County Treasurer Frank O’Leary told the Sun Gazette that Signature was delinquent on its real estate and business taxes.

Norovirus Outbreak at Nottingham Elementary — Dozens of students at Nottingham Elementary School have been sickened in what is believed to be an outbreak of norovirus. The contagious stomach illness causes serious nausea and vomiting. So far, Arlington Public Schools officials have not responded to a request for more information from ARLnow.com. [WJLA]

County Board Not Interested in Meals Tax Changes — In response to a speaker at Saturday’s Arlington County Board meeting who was critical of the county’s 4 percent meals tax, County Board members said they’re not inclined to make any changes to the tax. The meals tax is levied on restaurant bills and on the purchase of prepared meals from grocery stores, on top of the state’s 5 percent sales tax. [Sun Gazette]

Arlington Org Targeted By IRS — The Clarendon-based Leadership Institute, a conservative training organization, says it was among the conservative groups targeted for audits and extra scrutiny by the Internal Revenue Service. [Washington Free Beacon]

Bike to Work Day Photos — Bike Arlington has published two photo albums from Friday’s Bike to Work Day on Facebook. The albums show Bike to Work Day festivities in Ballston and Rosslyn.

Flickr pool photo by Wolfkann

Heavy Seas Alehouse to Open in Rosslyn — Baltimore brewer Heavy Seas plans to open a restaurant at the newly renovated 1501 Wilson Blvd in Rosslyn. So far, the existing Baltimore location is the only other Heavy Seas Alehouse besides the one planned for Rosslyn. The restaurant is expected to open by the end of this year. [Washington Business Journal]

Army Ten-Miler Registration to Begin — Registration for the Army Ten-Miler opens at midnight on Wednesday, May 15. This year, 35,000 spots will be available for the October 20 race, instead of 30,000. General admission entries sold out within nine hours last year. [Army Ten-Miler]

Local Eighth Grader Named State’s Top Female Orator — Swanson Middle School eighth grader Dorothee Mulumba won the Virginia State Oratorical Contest on May 4. In total, her scholarship winnings from the local, regional and state competitions add up to $3,000. [Sun Gazette]

McDonnell Signs Transportation Bill — On Monday, Gov. Bob McDonnell signed the transportation funding bill into law. The law cuts the state’s 17.5 cents per gallon gas tax and raises the state sales tax from 5 percent to 5.3 percent, in addition to adding a $64 registration fee for hybrid vehicles. [Washington Post]

Flickr pool photo by Mark C. White

The Board raised taxes slightly above the 3.2 cent increase recommended by County Manager Barbara Donnellan, citing the need to eliminate proposed cuts to the police and fire departments and the county’s child care office, and the need to increase funding to safety net programs and Arlington Public Schools.

Arlington’s tax rate will now increase to $1.006 per $100 of assessed value.

“The overall tax and fee burden for the average Arlington homeowner will increase 4.1% — or about $23 a month,” according to a county press release (below, after the jump). “The adopted tax rate is lower than the advertised rate of $1.021 per $100 of assessed value. (It is also lower than the proposed rates for all other Northern Virginia jurisdictions, which range from $1.038 to $1.33.)”

Additional funding for the budget came thanks to an improved financial outlook, which in turn boosts tax revenues.

“This allowed the Board to restore many proposed service reductions, while only increasing the tax rate three-tenths of a cent above what was included in the proposed budget,” the county said.

From the Arlington County press release:

The Arlington County Board today adopted a $1.09 billion General Fund Budget for Fiscal Year (FY) 2014, making modest changes to the overall magnitude of the draft budget presented earlier this year by County Manager Barbara Donnellan while restoring funding for many programs for which cuts had been proposed. (The proposed budget included 109 individual cuts across departments, totaling $9.3 million and 41 positions.)

“We heard from Arlingtonians that they want to preserve key services, restore proposed cuts to our police and fire departments and inspections of child care facilities; care for those most in need; do what it takes to keep our schools among the nation’s best, and increase our investments in affordable housing and capital maintenance,” said County Board Chairman J. Walter Tejada. “This budget builds on the Board’s direction to the Manager to sustain vital services while building for the future.”

The proposed elimination of local regulation of childcare providers will not take place, as the Board provided full funding for the continued operation of the office. The Police Department also received full funding to continue community policing, and retain the 7 officers that were to have been dropped under the proposed budget. The Fire Department will keep the 3 positions that were on the chopping block.

The Board added more than $1.0 million in new funding for safety net programs administered by the County and a range of non-profit organizations, and allocated funds for the County’s nature centers and tree canopy preservation. In its final action, the Board also added additional funding for Arlington Public Schools, which have experienced greater than anticipated enrollment growth during the school year.

The Board allocated available “one-time” funds to four major areas: $3 million to a budget stabilization fund (anticipating potential difficulties that could arise mid-year due to federal sequestration); $3 million to the Affordable Housing Investment Fund; $2 million for land acquisition; and $869,862 to a maintenance capital reserve for County-owned facilities and infrastructure.

All together, the Board added back $3.2 million in ongoing funding, and restored 29 positions. (The County workforce remains 32 FTEs below its high of 3822 in FY 2009.)

The Manager had proposed a 3.2-cent increase in the real estate tax rate; the final budget approved by the Board raised that by three-tenths of a cent, to 3.5 cents. (In February, the Board had advertised a maximum increase of 5 cents.) Other taxes, such as those for personal property, business tangible property, business license, and storm water remain unchanged. Fees for household solid waste disposal will go down slightly.

Tejada cautioned that sequestration, the Base Realignment and Closure (BRAC) process and the sluggish pace of the nation’s economic recovery will continue to put pressure on the County budget for at least the next two years. Many of the funding restorations made by the Board this year, he said, were with one-time funds and may not be continued in the coming years.

“This is not a year in which we can do many new things,” said the Chairman. “We can, however, maintain the fundamental commitments that Arlington has made, especially in areas like public safety, affordable housing, the social safety net for our most vulnerable residents, our natural environment, and our schools. This budget reflects those values.”

The County’s financial picture improved since the Manager’s proposed budget was released in February, with modest increase in various revenue streams, Tejada noted. This allowed the Board to restore many proposed service reductions, while only increasing the tax rate three-tenths of a cent above what was included in the proposed budget.

The Board voted 5 to 0 to adopt the budget.

Budget details

The Board made a number of changes to the County Manager’s Proposed Budget after hearing from hundreds of County residents. The adopted FY 2014 General Fund Budget, which includes Schools funding, grows 3.7% over the FY 2013 Budget.

Increased funding for Arlington Public Schools

The total FY 2014 transfer to APS is $415.7 million, a 2.2% increase. This funding includes an increase in ongoing funds of $12.3 million and fully funds the cost of more than 1,000 new students as part of the real estate tax rate increase. In addition to the ongoing funding provided to Schools, $3.1 million in one-time funds from 2013 tax revenues are provided. The County Board has also set-aside a $6.6 million contingency fund to address community enhancements needed as part of Schools’ capacity projects and for joint use projects.

“Arlington’s public schools are among the best in the nation and one of our County’s greatest assets,” Tejada said. “The Board is committed to providing our schools with the support they need to ensure excellence as enrollment continues to grow.”

Board restores public safety and other cuts put forward by County Manager

The Board restored all cuts to the Fire Department and Police Department that had been proposed in the County Manager’s Proposed Budget, restoring three firefighting positions, at a cost of $402,934, and the reduction to the Police District Teams at a cost of $903,926. The Board also restored child care specialists, at a cost of $249,798 to ensure that inspections of childcare facilities continue. Other items restored by the Board include:

• Nature Center Hours and Natural Resource Specialist ($124,910)
• Funding for Teen & Youth Programs, including Woodbury Park Teen Club ($83,930)
• Some funding for STAR to delay co-payment increase ($22,453)
• Supported Employment and Education (restored $50,000 and added $66,000)
• Funding for tree planting and watering ($62,804)
• Funding to combat invasive plants ($100,000 in one-time funds)
• Funding restored, increased for non-profits to meet increased need
• The Board, citing increased need, restored one-time funding for many non-profit organizations that serve women, tenants, immigrants, seniors and others, and approved over $1.0 million in new funding for safety net and non-profit programs.

Increased funding for affordable housing

Affordable housing is one of our community’s top priorities. Noting the County’s high property values, the Board added $3 million in one-time funding to the Manager’s proposed $9.5 million for the County’s Affordable Housing Investment Fund (AHIF). The Board’s actions bring funding for AHIF to its highest levels. The Board also added $388,850 in one-time funding for Permanent Supportive Housing.

“Arlington is a leader in the region in creating and preserving affordable housing,” Tejada said. “There is a critical and growing need in our community for housing that is affordable to the teachers, firefighters, police officers, service workers and others who find themselves priced out of our County. The Board is committed to ongoing investments in our affordable housing stock.”

Maintenance and upgrades to County buildings, infrastructure, and open space

The Board added $869,862 in one-time funding for maintenance capital – money that will go toward working through a maintenance backlog for County facilities and infrastructure. The money will be used to repair County buildings and infrastructure, including parks and recreation areas.

The Board also added $2 million for land acquisition funding.

Employee compensation

The FY 2014 Budget includes funding for merit step increases for County employees.

Real Estate tax rate to rise by 3.5 cents

The real estate tax rate will rise by 3.5 cents, from $0.971 per $100 of assessed value (including the sanitary district tax) to $1.006 per $100 of assessed value. The overall tax and fee burden for the average Arlington homeowner will increase 4.1% — or about $23 a month.

The adopted tax rate is lower than the advertised rate of $1.021 per $100 of assessed value. (It is also lower than the proposed rates for all other Northern Virginia jurisdictions, which range from $1.038 to $1.33.)

The FY 2014 budget includes no increases for personal property tax, business tangible property, business and professional occupational licenses, water-sewer fee, dedicated stormwater tax, or commercial transportation tax rates. The household solid waste rate will also be slightly reduced from $293.92 to $293.76.

The new Virginia transportation plan assumes it will receive revenue from online sales taxes captured under proposed legislation currently being considered by Congress. While the plan faces a number of hurdles in Washington, many are wondering how it would work?

Online sales have been largely exempt from taxes based on a Supreme Court case decision requiring a seller to have a physical presence in a state in order to be subject to collecting that state’s sales tax. Instead of trying to overturn this legal precedent, proponents of imposing online sales taxes have deftly moved to the other, largely unknown side, of the tax. It’s known as the use tax.

If you’ve never heard of it, you are not alone. By some estimates, 99 percent of use taxes are not paid. This makes it the type of ineffective government plan that is likely to be a prime candidate for repeal.

What is a use tax? In the simplest terms, residents of Virginia are legally required to pay a tax on any items you purchase that are not currently subject to a sales tax. So, whether you have been shopping tax free at Amazon.com or in Delaware, you technically owe Virginia sales tax on those items.

I found out about the use tax the hard way when my wife received an item as a gift that was shipped into Virginia from North Carolina. The revenue office acquired the shipping invoice and sent us a tax bill well over a year later. Rather than spending countless hours fighting the charge, we simply paid it, despite not having purchased the item ourselves.

Since then, I have always made a voluntary contribution to the use tax on my annual Virginia tax return. I also have been waiting for a statewide candidate who calls for repealing the use tax as part of their platform.

Now the use tax is proposed as the vehicle for a big revenue increase that will take more money out of our economy. Under the theory that we in Virginia, and in most states, currently owe this use tax anyway, the proponents of federal legislation view this mechanism as a way around the Supreme Court ruling requiring a physical presence in a state to collect sales taxes. To do so, the plan would require us to pay the use taxes for Virginia on online sales at the point of sale.

If the federal law enabling use tax collections passes, Richmond should drop the plans to spend it. Instead, we should move to immediately lower the sales and use tax rate in a manner that ensures there is no net increase in revenue. Our Virginia economy would benefit from this approach. It would help all Virginians, and particularly those with lower incomes who need to maximize their buying power.

Mark Kelly is a former Arlington GOP Chairman and two-time Republican candidate for Arlington County Board.

Donnellan had proposed a 3.2 cent real estate tax increase. The Board gave itself extra budget wiggle room by advertising a 5 cent increase in February. At a Fiscal Year 2014 budget markup work session Tuesday afternoon, the Board tentatively settled on a tax rate in-between the two, but closer to that proposed by Donnellan. The extra 0.3 cents will bring nearly $1 million in additional tax revenue.

The Board will vote on a final budget and tax rate at its meeting on Saturday.

The marked-up budget removes Donnellan’s proposal to slash community policing and reduce fire department fill-in staffing. As promised by County Board Chair Walter Tejada, it also restores funding for the county’s child care office.

Other additions to the budget, as reported to ARLnow.com, include $400,000 for permanent supportive housing, $660,000 for human services case managers and community nursing.

The Board also made some preliminary decisions about what to do with $11 million in “close out” funds left over from the FY 2013 budget. Among other measures, the Board will consider directing $3 million to the Affordable Housing Investment Fund and $2 million to a land acquisition fund for the parks department, along with additional funding for numerous community non-profit organizations.

Memorial Bridge in Need of Renovations — The 81-year-old Arlington Memorial Bridge, which was once a functioning drawbridge, is in urgent need of repairs. The repairs could cost as much as $250 million and close the span for three months. [Washington Post]

Free Stuff on Tax Day — Among other Tax Day offers around town today, April 15,  California Tortilla is offering free chips and queso to anyone who comes in and uses the secret code “1040.” The restaurant has locations in Courthouse and Crystal City. If you’ve procrastinated and need some free tax advice, check out our three Q&A sessions with local tax pro Bobby Grohs.

Recognizing Arlington’s ECC Staff — Arlington County is recognizing National Public Safety Telecommunicators Week, which runs April 14-20, and lauding the work of the county’s Emergency Communications Center staff — the men and women you talk to when you dial 911. “We commend these professionals on their tireless efforts to support emergency responders and to provide critical services to the citizens of our nation,” the county said in a press release. [Arlington County]

The IRS tax filing deadline is April 15,  just two weeks away.

If you’ve put off doing your taxes until now, and you need some last-minute advice, you’re in luck – local tax guru Bobby Grohs is back for one last reader question-and-answer session before the big day.

Grohs launched Arlington-based Tax Matters LLC in 1998. A Certified Public Accountant and University of Maryland grad, Grohs specializes in “comprehensive tax and consulting services for clients ranging from individual taxpayers, small businesses and nonprofits located throughout the greater Washington metropolitan area.”

Grohs will be answering you questions in the comment section until 5:00 p.m. If you’d like to reach him after the discussion is over, head to the Tax Matters website, email info@mytaxmatters.com or call 703-593-7391.

Also, be sure to check out our previous tax chats from March and February.

Please note that Mr. Grohs may not be able to answer every question asked. Also please note that in addition to our normal comment policy, we ask that questions and comments be of a civil tone. We welcome tough questions and critical comments, but anything of a mean-spirited nature will be removed.

Advice is provided on an “as-is” basis. The views and opinions expressed in the comments are those of their respective authors and not necessarily those of ARLnow.com.

Man Struck by Car in Clarendon Runs Race — Michael Sizemore, 28, is making a remarkable recovery after being struck by a car in Clarendon and nearly dying this past fall. Sizemore, who suffered a fractured skull and two broken legs in the accident, among other injuries, ran a 5K race in Martinsville, Va., near his hometown of Collinsville, this past Saturday. Sizemore’s father, girlfriend, friends and other families were on hand to cheer him on. [Martinsville Bulletin, Facebook]

Residents Speak Out at Tax Rate Hearing — It was a much shorter affair than Tuesday’s nearly four hour public budget hearing, but a public hearing on Arlington County’s proposed tax rate drew a small crowd of activists Thursday night. Those advocating for more affordable housing and social services asked the County Board to raise taxes up to the legal maximum of 5 cents, while budget hawks asked for no tax increase or, at minimum, following the County Manager’s recommendation for a 3.2 cent tax increase. [Sun Gazette]

County to Hold Student ‘ART’ Contest — The county is challenging budding middle school and high school artists in Arlington to design a pedestrian safety-themed “wrap” for buses. The winning entry will be used to wrap one ART bus. The submission deadline is June 3. [Arlington County]