Arlington and Fairfax officials went in two different directions in adopting their fiscal year 2027 budgets.
The Arlington County Board on April 22 approved a 2-cent increase in the real estate tax rate, to $1.053 per $100 assessed valuation, to help fund the county’s $1.7 billion budget.
With the county government’s fiscal year 2027 budget season now over, eyes are beginning to turn to fiscal year 2028 — which may or may not be any easier to balance.
“Very uncertain” is how County Board member Julius “JD” Spain, Sr., describes the future of the local economy and its impact on the county’s budget process that will play out over the next 12 months.
Arlington homeowners will pay an average 5.2% more in real-estate taxes this year, under the county government’s $1.69 billion fiscal year 2027 budget adopted yesterday (Wednesday).
The total budget amount is nearly identical to the fiscal year 2026 spending plan now in place, marking a rare year without some degree of overall increase. But because of ongoing declines in values of commercial properties, more of the tax burden is shifting to homeowners.
Tax rates on real estate and meals won’t increase, but the car tax rate might, as Falls Church City Council members work to finalize a $134.3 million budget package.
Council members voted 7-0 Monday night (April 13) to advertise a real estate tax rate of $1.185 per $100 assessed valuation, unchanged from the current rate. That becomes the highest rate that could be adopted when the budget package comes to a final vote on May 11, although a lower rate could be set.
Gov. Abigail Spanberger (D) announced today that she did not sign dozens of tax bills into law — because the General Assembly never passed them and they never reached her desk.
Monday’s announcement came hours before the 11:59 p.m. deadline for the governor to act on more than 1,000 bills that did pass this session, and two days after President Donald Trump accused Spanberger of imposing a wave of new taxes.
Falls Church’s newest City Council member is suggesting an increase in the city’s meals tax to ease budget pressures.
“I think it should be something we’re considering,” Arthur Agin said at an April 6 Council work session that stretched well past midnight, focused largely on budget issues.
With property assessments and resulting tax revenue stagnant, changes could be coming to Arlington’s trio of business improvement districts, better known as BIDs.
It remains to be seen what, if anything, might shift. Danette Nguyen, CEO of the Ballston BID, told County Board members that her organization is not currently interested in any changes to the tax-revenue status quo.
Higher fees for property owners pair with rising real estate assessments in the Falls Church budget proposal unveiled by City Manager Wyatt Shields Monday night.
Falls Church homeowners would pay an average $611 more — an increase of 5% — in real estate taxes under the $134.3 million fiscal year 2027 budget.
County leaders are considering criticisms of a proposal to exclude new tax revenue from a sharing agreement with Arlington Public Schools.
Despite some pushback at a Saturday meeting, County Board members largely defended County Manager Mark Schwartz’s proposal, noting current fiscal pressures.
Rep. Don Beyer (D-VA) today introduced legislation that would create a tiered surtax on income above $1 million and use the revenue to eliminate federal income taxes for Americans earning less than the median cost of living.
The Working Americans’ Tax Cut Act, introduced with companion legislation by Sen. Chris Van Hollen (D-MD), would apply an additional 5% tax on individual income above $1 million, an additional 10% tax above $2 million and an additional 12% tax above $5 million. Higher thresholds apply to married couples. The surtax would cover both wages and investment income.
To maintain services amid falling commercial real estate values, Arlington may end up reaching even deeper into homeowners’ pockets in the years to come.
At a March 11 forum sponsored by Advance Arlington, County Manager Mark Schwartz warned of even more pressure to raise taxes on homeowners due to a drop in the assessed valuation of commercial properties.
The Arlington County Board has voted to advertise a 2-cent increase to the real estate tax rate, slightly higher than the rate proposed in this year’s budget draft.
If enacted in its entirety, the jump would increase the county’s tax rate to $1.053 per $100 assessed valuation, adding a further tax burden on homeowners already facing higher assessment values.
