Arlington County will not be asked to pay for more from its local coffers to cover dramatic funding hikes for Metro, the agency’s general manager promised Tuesday night.
Metro General Manager Paul Wiedefeld said he hoped to cap any requests for increased contributions from the various jurisdictions that make up the transit authority at 3 percent per year.
More money for Metro was a factor in the Arlington County Board’s decision to hike property taxes by 1.5 cents, meaning residents can expect to pay an extra $277 on average. Arlington will contribute $70.7 million for FY 2018, compared to $56.6 million in FY 2017.
And while Wiedefeld’s pledge does not rule out Arlington’s contribution rising, it would be a lower increase than the 23.85 percent hike taxpayers funded for Metro’s fiscal 2018 budget.
Wiedefeld, during his presentation to the County Board, said smart fiscal management would avoid asking jurisdictions for more money, as would a new dedicated revenue source. The Metropolitan Washington Council of Governments adopted a resolution earlier this month calling for a dedicated funding source, but it would need buy-in from Maryland and Virginia’s state assemblies as well as D.C.’s government.
County Board Chair Jay Fisette said the FY 2018 contribution was a “big number for a locality like Arlington,” and said he welcomed a cap on funding.
Board Vice Chair Katie Cristol said she was “delighted to see [the promised funding cap] having just gone through a pretty difficult budget process and like many other jurisdictions are struggling with the idea of trying to do that again.”
Wiedefeld also promised that local riders of the Blue and Yellow lines would see more frequent trains as Metro looks to adjust its rail service, starting June 25. He said that the plan is for the Blue Line to arrive on platforms every eight minutes during rush hour, instead of every 12 minutes, as is current practice to accommodate the Silver Line.
Board member John Vihstadt pointed out that riders of the Blue and Yellow Lines in Arlington might have “a little different perspective” on Metro’s reliability from those who use the Orange and Silver Lines in the county.
“I think we have to roll this out in June, let’s start to rebuild the base around that, deliver that and be much more consistent in that service, and then as we start to get better and better we can look at ways we can expand that,” Wiedefeld said. “But we have to start with looking at the realities of where we are.”
On ARLnow’s 26 Square Miles podcast last week, County Board and Metro board member Christian Dorsey said that while Metro still has work to do to increase reliability, delays have decreased as SafeTrack has wrapped up.
‘Love Letters’ Along the Pike — The “Virginia Is For Lovers” tourism campaign has installed the person-sized letters “LOVE” along S. Walter Reed Drive, ahead of this weekend’s Columbia Pike Blues Festival. [Facebook]
News Orgs Confuse Arlington and Alexandria — A number of news organizations mistakenly stated that yesterday’s shooting in Alexandria happened in “Arlington, Virginia.” Though somewhat inexplicable, the confusion happens frequently. [Twitter]
Regional Metro Tax Mulled — The Metropolitan Washington Council of Governments has approved a series of principles that could be the basis for a region-wide tax that can provide dedicated funding for Metro. Without it, WMATA says it will face budget shortfalls by 2019. [WTOP]
The Arlington County Board will discuss Saturday whether to move forward with a plan to extend a partial real estate tax exemption for Bloomberg BNA.
Bloomberg BNA is a major employer in the neighborhood with 972 employees and a 200,000 square foot office at 1801 S. Bell Street. It signed a deal earlier this year to stay in Arlington, invest $5.5 million and create up to 125 new jobs.
Under the proposal, Bloomberg BNA would be allowed to continue its partial property tax exemption, which expires at the end of this year, for another five years. Arlington first offered BNA an exemption in 2006 to lure it to Crystal City.
The company provides legal, tax, regulatory and business information to professionals who work in fields like the law, taxation and the environment among others.
Gov. Terry McAuliffe (D) approved a $500,000 grant from the Commonwealth’s Opportunity Fund to assist with the project, which came as Bloomberg BNA was looking to explore its options for future locations in the region. An extended tax exemption is part of the package of incentives.
The exemption took effect in 2008, and costs the county approximately $400,000 a year. Under the terms of the extension, BNA would need to keep at least its current staffing levels and occupied office space. If not, the County Board could withdraw from the exemption or reduce it.
If the County Board moves ahead with staff’s recommendation to advance the plan, a public hearing would be held in July.
Photo via Google Maps
Budget Plan Has Slightly Lower Tax Rate Hike — The 2017-2018 county budget that Arlington County Board members are set to vote on this weekend includes a 1.5 cent tax rate hike, a half cent lower than first proposed. The budget includes increased funding for schools, Metro, county employee raises, land acquisition and services for immigrants faced with deportation. It raises the tax burden on the average homeowner by about $300. [InsideNova, Washington Post]
No Easter Egg Roll Tix for APS — Arlington Public Schools received hundreds of tickets to the annual White House Easter Egg Roll under the Obama administration, but did not receive any for President Trump’s first egg roll this year. D.C. Public Schools also were not invited. Critics say minority children were under-represented at the event. [Patch]
Big County Events This Weekend — Among the events in Arlington this weekend are a trio of major annual happenings: the Arlington Homeshow and Garden Expo at the Thomas Jefferson Community Center, the Arlington Teen Summer Expo at Wakefield High School and the Arlington Festival of the Arts in Clarendon.
Blue Virginia’s County Board Endorsement — Influential local Democratic blog Blue Virginia has endorsed Erik Gutshall in the race for Arlington County Board. A party caucus will be held next month for the four-way Democratic contest. [Blue Virginia]
John Glenn to Be Buried Today — Astronaut, U.S. senator and one-time Arlington resident John Glenn will be interred at Arlington National Cemetery this morning. Glenn died in December at the age of 95. Arlington County Police Department motor units are assisting with rolling road closures for the funeral procession. [Rare]
CivFed Rejects Tax Hike — The Arlington County Civic Federation voted “overwhelmingly” to call on the County Board to reject a proposed property tax rate hike and instead tap into reserve funds to provide needed funding boosts for Metro and Arlington Public Schools. [InsideNova]
Tears for Casual Adventure — Long-time customers, employees and owners of Casual Adventure in Virginia Square are all shedding tears as the 61-year-old store prepares to close. The outdoor retailer is holding a store closing sale to liquidate its inventory. [NBC Washington]
Lawsuit: Sexual Harassment in Arlington Apartment — A lawsuit alleges that a 72-year-old official with a small graduate school in D.C. coerced students “into sexually explicit physical examinations at his Arlington, Va., apartment, ostensibly to keep their jobs and advance their careers.” [Washington Post]
Buckingham Profiled by WaPo — Buckingham is a diverse, relatively affordable community near Ballston and the Orange Line. But its civic association president does not like the direction the neighborhood is headed — and he didn’t mind expressing that in the Washington Post’s “Where We Live” community real estate profile. “For Bernie Berne… the biggest issue is the ‘destruction of the neighborhood by affordable housing,'” the paper wrote. “Berne… said he believes the ‘increase in the density’ of the area ‘takes away open space and trees.'” [Washington Post]
CarPool Now Closed — A line out the door marked CarPool’s last day in business on Monday. The Ballston bar hosted a large crowd of patrons there to watch the Nationals opening day and the NCAA men’s basketball championship, and to say goodbye to the long-time watering hole. [Twitter]
Clement Opposes Tax Rate Hike — Independent Arlington County Board candidate Audrey Clement says she does not support the proposed property tax hike, which Arlington’s county manager says is necessary to fund Metro and Arlington Public Schools. [InsideNova]
Developments in School Board Race — Former congressional candidate Mike Webb has gathered the petition signatures necessary to get on this year’s Arlington School Board ballot, although he still has a couple of paperwork hurdles before he officially qualifies. Meanwhile, incumbent James Lander has received the endorsement of the Arlington Education Association as he faces two challengers in the Democratic endorsement caucus. [InsideNova, InsideNova]
Arlington’s Trees By The Numbers — “The County is proud home to some 755,400 trees of at least 122 species. If you had to put a price on all that priceless foliage, it’d be worth more than $1.4 billion.” [Arlington County]
Tour of the Trades Center — The latest “Around Arlington” video from the county gives viewers a tour of the Arlington Trandes Center near Shirlington, where school buses are housed, police cars get repaired and salt trucks get refilled. [YouTube]
Police Chief: See Something, Say Something — Although the vast majority of calls about suspicious people or circumstances turn out to be nothing, Arlington’s police chief is still encouraging residents to call the police non-emergency line at 703-558-2222 if they see something out of the ordinary. Said Chief Jay Farr: “Do not hesitate to call us about something suspicious. Some say, ‘I didn’t want to bother you,’ but I say, `Bother us.'” [Falls Church News-Press]
The following letter was sent to members of the County Board, ARLnow.com and other community organizations by Bluemont resident and local activist Suzanne Smith Sundburg, who says the proposed tax rate hike is regressive and unnecessary. Arlington County is in the midst of its annual budget process.
Dear Chair Fisette and members of the Arlington County Board,
Meaningful discussion of revenue (the real estate tax rate) without any discussion of expenditures (the budget) makes little sense, as these two items are inextricably linked.
For FY18, the effective advertised real estate tax-rate (assessment increase + 2-cent rate increase) is equivalent to a 4-cent hike in the real estate tax rate. Over the past decade, Arlington County homeowners, commercial property owners, and renters have been asked to shoulder ongoing increases in the tax and fee burden.
With a 2-cent increase, the average homeowner would see the tax and fee burden rise from $8,305 in calendar year (CY) 2016 to $8,613 in CY 2017 — a 4% increase, or about $492 — and will have absorbed a cumulative, 5-year increase of $1,613 in additional taxes and fees (CY 2013-CY 2017).
Commercial property owners (and the businesses that rent from them) face an even greater burden with the 12.5-cent transportation surcharge and (where applicable) BID assessment.
At a March 9 budget work session with the commissions, the manager agreed that real estate tax increases are passed through to commercial office tenants and that taxes are one driver of the county’s stubbornly high vacancy rate. However, he could point to no specific data or recent analysis predicting the impact of a 4-cent (or lesser) effective tax-rate increase on Arlington’s vacancy rate.
Likewise, in answer to another question on March 9, the manager also agreed that raising the real estate tax rate would increase the cost of housing for the county’s affordable housing community — even as the county is simultaneously subsidizing this cost. Increases in Arlington’s tax and fee burden makes housing less affordable for all Arlingtonians, and this burden disproportionately affects those living on lower and fixed incomes, including elderly and disabled residents.
Given the large amount of cash on hand, as outlined below, it would seem highly likely that the manager could (with Board concurrence) cover all new proposed spending by reallocating a small portion of these funds to cover limited-duration and nonrecurring expenditures in the general fund budget rather than raising the tax rate for FY2018.
Using cash already on hand, the manager’s proposed budget could be funded without any spending cuts or a tax-rate increase. I therefore urge the Board not to increase the tax rate and to ask the manager to identify expenditures that are appropriate for alternative cash funding and to trim any unnecessary spending, using public money efficiently and effectively to minimize the need for future tax increases (or spending cuts). Below the list of several sources of cash on hand, I have identified a few cost savings and efficiencies as well.
CASH ON HAND
- $191.2 million — Fund Balance. (See Exhibit 3, FY16 CAFR.) I am not asking the board to tap the county’s 5% operating reserve of $58 million or similar required reserves. There is a great deal of money in the fund balance beyond required reserves. Since FY09, the county has been carrying an unspent fund balance of at least $100 million. (See Exhibit 5, FY09-FY16 CAFRs.) Since FY06, the fund balance has generated a net positive surplus, even at the height of the real estate crash when revenues were $72 million less than expenditures.
Thus, over the last decade the county historically and consistently has taken in more money than it has spent. FY18 will likely continue this trend as the manager has presented a “balanced budget that continues the current level of service within existing tax rate” of $0.991 per $100 of assessed value.
- $77.7 million — APS reserves. APS has its own $77.7 million cash reserves (on top of county reserves), which are defined/described in the superintendent’s FY18 proposed budget. The superintendent has set aside approximately $24 million in cash for “future budget years,” $19 million of which is unallocated and presumably will be carried over into FY19.
- $157 million — Transportation Capital Fund. (See Exhibit X, FY16 CAFR.) The TCF is expected to generate another +/-$26 million in revenue in FY18. On March 9, the manager confirmed to me that at least some of the 1-cent proposed increase for Metro could alternately be funded by TCF dollars. When we know that borrowing costs are likely to rise, why would we want to float more new bonds than strictly necessary, particularly when we have so much unspent money in the TCF?
Surely out of a $1.24 billion budget, the county can find $14.8 million in limited-duration and nonrecurring expenditures that could be otherwise funded from cash already on hand. If it’s a choice between making cuts and finding expenditures that qualify for an alternative funding source(s), my guess is that the county’s departments will be able to provide a list of items that would qualify.
Metro PD Searching for Sexual Battery Suspect — Metro Transit Police are trying to identify a man who may have touched another rider inappropriately on an Orange Line train near the Clarendon station last week. [NBC Washington]
Local Tax Relief for Seniors — Last year 929 Arlington residents took advantage of the county’s real estate tax relief program for seniors, together saving $4.1 million in taxes. [Falls Church News-Press]
County Honors Transportation ‘Champions’ — “The Arlington County Board today honored 22 businesses as Platinum Level Champions for their commitment to operating and enhancing sustainable transportation programs for employees and tenants.” [Arlington County]
Arlington County Manager Mark Schwartz has proposed a series of budget cuts to halve his proposed two cent tax increase to one cent.
The cuts to Schwartz’s proposed budget total $11.1 million and include everything from a multi-million dollar reduction in school funding to a reduction of hours at the Glencarlyn library and the elimination of a management intern position in the parks department.
From a county press release:
The potential reductions would affect a range of County services, including Human Services, Libraries, Parks and Recreation, Community Planning and Housing and Economic Development. The options also include eliminating both planned service improvements in the streetlight program and additional staff for the County jail. Schwartz also recommended that, based on the principles of revenue sharing between County Government and Arlington Public Schools (APS), $3.5 million of the cuts from the on-going budget and $1.7 million of the cuts from the one-time budget come from the APS budget.
The Arlington County Board advertised Schwartz’s recommended two cent tax rate increase but also asked him to recommend some budget cuts, as an option to consider.
“Putting together budget reduction options is always difficult, particularly given the growing demands and potential impacts on our community,” Schwartz said in a statement. “The package makes no change to the additional resources committed to Metro. Since we presented our Proposed Budget on Feb. 25, jurisdictions are facing a Metro funding deficit that may grow even larger.”
Under the advertisement, the Board cannot raise the property tax rate more than two cents for every $100 in assessed value this year. (At last month’s meeting, Board members Libby Garvey and Christian Dorsey proposed, unsuccessfully, setting the advertised rate three cents higher than the current $0.991 for every $100.)
The Board will hold public hearings on the budget and the tax rate on March 28 and March 30, respectively. Final adoption of the budget is scheduled for April 22.
Permitting a Challenge for Older Properties — Arlington’s permitting office can be a source of frustration for homeowners trying to make changes or additions to their house, but it’s especially challenging for those who own older properties that no longer conform to the county zoning ordinance. [Arlington Magazine]
Free Tax Help in Arlington — Arlington County is again offering free tax assistance sessions through mid-April for lower income residents: individuals making up to $35,000/year or families making up to $54,000/year. [Arlington County]
Four Courts ‘Leprechaun’ Profiled — Dave Cahill, the general manager of Four Courts in Courthouse, is the official “leprechaun” of the Four Courts Four Miler, which took place on Sunday. Cahill recently spoke about how he started running and helped come up with the idea for the race. [Facebook]
Signature’s ‘Mrs. Miller Does Her Thing’ — Emmy- and Tony Award-winning actress Debra Monk is starring in the new production of “Mrs. Miller Does Her Thing” at Shirlington’s Signature Theatre. It’s the true story of Elva Miller, “a 59-year-old grandmother who became an overnight sensation with her operatic but off-turn renditions of pop hits.” The show runs through March 26. [NBC Washington]
Flickr pool photo by John Sonderman
(Updated at 5:30 p.m.) A new $1.2 billion budget proposed by Arlington County Manager Mark Schwartz would boost core services — road paving, streetlight maintenance, public safety, schools and Metro — while raising property taxes to the highest rate since 2001.
The proposed FY 2018 budget is being presented to the County Board this afternoon (Thursday).
Spending under Schwartz’s proposal — drafted with guidance from the County Board — would increase 4.3 percent, while the tax rate would increase by two cents, from $0.991 to $1.011 for every $100 in assessed. That would be Arlington’s highest property tax rate since 2001, when it was $1.023.
The rate increase would come on top of rising property assessments — up 2.9 percent this year. The total tax and fee burden on the average Arlington homeowner would rise by $308 to $8,613 under Schwartz’s proposal, which will now be considered by the County Board after a series of work sessions and public hearings. That’s up from $7,745 three years ago, in 2014.
Final adoption of the new budget is scheduled for April 22, while the Arlington Public Schools budget — Superintendent Dr. Patrick Murphy is presenting his proposed budget tonight — is scheduled to be adopted on May 4.
Last year, Schwartz proposed a half-cent property tax rate decrease, which was then adopted by the Board. This year, Schwartz says more revenue is necessary to fund the “clearly extraordinary needs of Metro and APS.”
The two-cent rate increase itself is expected to bring in an additional $14.8 million in on-going revenue. Much of that is earmarked by Schwartz for an overall $21.2 million increase in funding for Arlington Public Schools, which is experiencing a prolonged period of enrollment growth, and additional funding for Metro, which is also set to receive $22 million in bond funds from Arlington for capital projects.
“It is never easy to recommend an increase in property tax rates, but Metro and our public schools are both vitally important to our County’s continued prosperity, and both are in urgent need of additional funding,” Schwartz said in a press release.
Other areas of spending increases, as outlined in the press release and in a press briefing Thursday morning, include streetlight maintenance, road paving, facilities maintenance, land acquisition, public safety and economic development.
Schwartz said streetlight maintenance and road maintenance, in particular, were identified as top priorities in resident satisfaction surveys.
The number of county-owned streetlights has increased 40 percent over the past five years, contributing to an average repair time of 30 days for minor outages and up to 120 days for major outages. Under the proposed budget, there would be an $910,000 increase in streetlight and trail light funding, adding five new full-time positions, two vehicles, a consultant, equipment and supplies, with the goal of reducing the length of minor repairs to 3 days and major repairs to 1-2 months.
“It’s a safety issue,” Schwartz said of dark streetlights. “People want their government to do the basics before other things.”
Road paving, meanwhile, would receive a $3.3 million boost in funding, with $15.2 million budgeted by Schwartz in FY 2018. Arlington has accelerated its paving program over the past few years, with the goal of raising the county’s Pavement Condition Index to the “high 70s” on a 1-100 scale, according an official at the briefing.
Schwartz’s budget includes $3.5 million for maintenance of synthetic turf fields and other county facilities, $2 million for land acquisition, $250,000 in grants to connect businesses to the county’s ConnectArlington fiber network, a new economic development employee focused on assisting child care businesses, and a 3.25 percent merit salary increase for county employees.
Also included are seven additional sheriff’s deputies, three additional 911 call-takers three additional police officers, all funded “through reallocation of existing resources,” plus two large fire department recruit classes to make up for projected retirements and other attrition.
“[The budget] continued the multi-year-focus on the three priorities I have laid out: economic development, service delivery and transparency, and strategic budget planning and fiscal sustainability, while addressing the core service demands of the County mainly through budget reallocations,” said Schwartz.
Schwartz proposes raising a number of county fees, to “bear a reasonable relationship to the service for which the fee is imposed,” including:
- Raising the household solid waste rate by $6.88 to $314.16 annually
- Raising the water/sewer rate by 35 cents to $13.62 per thousand gallons, an estimated annual increase of $24.50 per household
- New “accessory homestay” (Airbnb, etc.) permit fee of $60
- An unspecified increase in aquatics and gymnastics program fees “to meet the increased capacity in the programs.”
The public budget and tax/fee hearings are scheduled for March 28 and 30.
This past weekend, the Arlington County Board approved new regulations on Airbnb and other short-term home rentals.
The move was cheered by Airbnb, which said Arlington is now the “first D.C. area municipality to pass an ordinance creating fair rules for middle class residents and families to continue sharing their homes.”
The regulation officially makes Airbnb legal in Arlington, whereas it might have been technically illegal before, under the local zoning ordinance. But there was one issue not addressed by the county press release that Airbnb hosts will want to consider going forward: taxes.
ARLnow.com did some more digging and it turns out that Airbnb hosts (along with those using services like Homeaway, Craigslist, etc.) will have to pay the same 7.25 percent Transient Occupency Tax as hotels. And they’ll have to pay it in the same way — by creating an account with the county and filing monthly tax returns.
That’s a burden that may discourage casual hosts from, say, just renting their place for the inauguration, assuming they want to stay on the right side of the law.
“The Commissioner of Revenue will require each person renting property to transients, including those who obtain an accessory use permit for short term homestays under the new County ordinance, to collect and remit the TOT to the County,” Ray Warren, Arlington’s Deputy Commissioner of Revenue, tells ARLnow.com.
“This is done and will be done the same way as it is with every other entity providing transient accommodations,” Warren said. “We will set up an account for the accommodation provider. They must file each month by the 20th for the previous month’s activity.”
What if a homeowner did not rent his or her property in a given month?
“They should file monthly, but it is easy (especially online) to file a zero return,” Warren said. “Otherwise we don’t know if they had no business or merely neglected to file.”
So monthly tax returns will be the norm for anyone renting their place on Airbnb. If the homeowner decides to stop renting for the foreseeable future, they can notify the Commissioner of Revenue’s office and stop filing.
“It would not be proper, however, for the homeowner to again advertise the property for rent without opening a TOT account,” noted Warren.
Because Airbnb does not publicly list the addresses of rental properties, Warren said that compliance will primarily be accomplished through tips. Another compliance mechanism: checking the tax records of those who have applied for the new “accessory homestay” permit.
“We have made efforts this year, but we depend on tips and voluntary compliance,” he said. “To the extent there are those who do not comply with the County’s new ordinance (and get an accessory use permit) we will continue to rely on tips from the public.”
“Homestay rentals, unlike other public businesses, do not generally have signage or other markers, so that can be difficult otherwise,” Warren added. “We will also be reviewing individual (state) income tax returns to look for persons reporting such rental income. I suspect that bringing the vast majority into compliance through the County ordinance will also increase the number of leads as to non-compliant locations.”
County Board member John Vihstadt, the lone “no” vote on the short-term rental ordinance, said had “some serious reservations” about it and thought the process was “too rushed” and left “issues inadequately addressed.”
Contacted by ARLnow.com two days after the vote, he said he was not sure how taxes would be collected on Airbnb properties.
“That is something, frankly, that is not clear,” he said. “We need to make this easy for the hosts and guests.”
Garvey Wants to Nix New Year’s Day Meeting — Arlington County Board Chair Libby Garvey has proposed moving the Board’s traditional New Year’s Day meeting (this year it would otherwise be held on Jan. 2, the federal observance of the New Year holiday) to the next business day: Tuesday, Jan. 3. [Washington Post]
Neighbors Upset About Sex Offender’s Halloween Decorations — A 57-year-old registered sex offender says he did nothing wrong in putting up Halloween decorations in front of his Arlington house. But nearby residents don’t agree: they called the police and local TV stations, saying the display is “inappropriate” since it might “entice” children. One concerned resident said, “we are within our rights as taxpayers and longtime members of this community to protect the children in our community.” [Fox 5]
Higher Meal Tax Possible? — If state lawmakers act to provide counties with the same taxing powers as Virginia cities, as Arlington County is asking for again this year, it could eventually mean an increase in the meals tax at local restaurants. [InsideNova]
It’s November — Today is the first day of November. In a week, it’s finally Election Day. In three weeks and two days, it’s Thanksgiving. The weather forecast for the next two days, however: highs of 75 and 79 on Wednesday and Thursday.
New Invasive Species Found in Arlington — A county contractor has found Wavyleaf Basketgrass, a particularly prolific invasive species, in Donaldson Run Park. The plant was removed but the county is now on the lookout for more. [Arlington County]
Murky Coffee Owner Still Owes County — Nicholas Cho, the proprietor of Murky Coffee, which closed six years ago in Clarendon, recently repaid his tax debts to the District of Columbia but still owes Arlington more than $84,000 in unpaid meals taxes and interest. [Washington Post]
Lyft Sees Lift in Arlington Corporate Customers — For some reason ride hailing service Lyft is seeing a relatively large increase in business from corporate customers in Arlington. [Pymnts]
Flickr pool photo by David Giambarresi
Avant, who lives in Arlington, falsely claimed he was exempt from federal tax withholding, prosecutors say. He made more than $170,000 per year during tax years 2009-2013, but did not file a tax return during that time, the U.S. Attorney’s Office said.
Avant faces up to five years in prison. From a press release:
ALEXANDRIA, Va. – Isaac Lanier Avant, of Arlington, who is currently employed as a staffer by the U.S. House of Representatives, has been charged with five counts of willfully failing to file a tax return.
According to the criminal information and affidavit, Avant has been employed as a staff member of the U.S. House of Representatives since approximately 2002. For tax years 2009 through 2013, Avant earned annual wages of over $170,000, but did not timely file a personal income tax return for any of those years. In May 2005, Avant filed a form with his employer that falsely claimed he was exempt from federal income taxes. Avant did not have any federal tax withheld from his paycheck until the Internal Revenue Service (IRS) mandated that his employer begin withholding in January 2013.
Avant faces a maximum penalty of five years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Jack Hanly and Assistant Chief Todd Ellinwood of the Tax Division.
Photo via cbcfinc.org