The value of all residential and commercial property rose by 1.9 percent over the past year, compared to 3 percent the previous year. Homes went up in value by 3.9 percent, compared to a rise of 2.5 percent last year.
It means the average home value in Arlington, including condominiums, townhouses and detached homes, is now $640,900, up from $617,200 last year.
With uncertainty still swirling about whether taxpayers can deduct property tax prepayments, Arlington County is offering refunds for those who have already made deposits.
County Treasurer Carla de la Pava said the county has already collected around $18.2 million in prepayments from 2,300 accounts, with it still unclear whether taxpayers can deduct those prepayments from their 2017 federal taxes.
(Updated at 1:55 p.m.) Arlington County has collected some $11.5 million in property tax deposits for future years, according to Treasurer Carla de la Pava, but it’s unclear whether taxpayers will be able to deduct those prepayments from their 2017 federal taxes.
Following a ruling by the IRS yesterday, limiting deductions to property taxes assessed in 2017, the county issued a statement Thursday afternoon that made it clear that Arlington is unable to assess 2018 property taxes until the County Board sets the tax rate in April.
IRS Rules on Tax Prepayments — Updated at 12:35 p.m. — Taxpayers hoping to get an additional deduction by prepaying their local property taxes may be out of luck. The IRS ruled late Wednesday afternoon that prepayments can only be deducted in limited circumstances that may not apply to many local jurisdictions — but are, reportedly, applicable to others. The ruling comes after local residents have already prepaid millions in taxes. One tipster told ARLnow.com that there was a line of “probably forty people,” some “paying for up to three years,” at the Arlington County treasurer’s office Tuesday morning. [Washington Post]
Disabled Train Delays VRE — Virginia Railway Express trains were delayed during the morning rush hour due to a disabled freight train north of Crystal City. [Twitter]
The bill, which was just signed into law by President Trump this morning, caps State and Local Tax (SALT) deductions at $10,000. For many Arlington taxpayers with pricey homes, this means they will lose part of their deduction next year and thus potentially pay higher federal taxes.
To counter that, some Arlingtonians are planning to take a higher deduction on their 2017 taxes by prepaying their property tax for future years.
‘Great Chocolate Race’ Cancelled — “The Great Chocolate Race, originally scheduled to take place in Rosslyn on Saturday, December 9, 2017, has been canceled due to circumstances outside the control of Arlington County and its Police Department. Runners who signed up to participate are advised not to respond to the area as planned.” [Arlington County]
Tax Bill Could Boost N. Va. Over D.C. — The GOP tax bill currently making its way through Congress could make Arlington and Northern Virginia a significantly more attractive a place to live for higher-income residents, tax-wise, than D.C. That is due to the proposed elimination of state and local tax deductions. [D.C. Policy Center]
Hot Item for the Holidays: E-ZPass — With tolling set to begin on what are now the I-66 HOT lanes, stores in Arlington and elsewhere in Northern Virginia are having trouble keeping E-ZPass transponders in stock, particularly the E-ZPass Flex devices that will allow carpoolers to continue to use I-66 for free. [WJLA]
W&OD Trail Changes Discussed — Officials are considering options for separating cyclists from those on foot on the W&OD Trail. “I love the potential separation,” Arlington County Board member John Vihstadt is quoted as saying. “I think that will be well-received by both sets of users.” [InsideNova]
The Arlington County Board voted to allocate the just-over $11 million in surplus funds to five “near-term” needs, but clashed over its use for affordable housing.
Board members voted 4-1 to follow County Manager Mark Schwartz’s recommendations and allocate the funds in the following ways:
Beyer Blasts GOP Tax Bill — Says Rep. Don Beyer (D-Va.) regarding the tax bill that passed the House yesterday: “I am adamantly opposed to the House Republican tax bill, H.R.1. The bill will raise taxes on millions of middle class Americans in order to fund tax cuts for the wealthy, and yet still manages to explode the deficit.” [Rep. Don Beyer]
Crystal City Scores 320 Jobs — A Georgetown-based nonprofit is moving much of its staff to a new office in Crystal City, leasing 90,000 square feet and adding 320 jobs in Arlington County. The move was announced by Virginia Gov. Terry McAuliffe, who approved a $500,000 state grant to assist Arlington with the project. [Virginia Business, Bisnow]
At the Arlington County Board’s meeting yesterday (Tuesday), Schwartz projected revenue will grow by 2.9 percent in FY 2019, but the county’s expenditures will grow by 4 percent. That would result in a funding gap of between $10 million and $13 million.
The funding gap assumes the current real estate tax rate of $1.006 per $100 of assessed value will remain the same. County staff is also projecting “modest growth” in assessed property values.
County staff said $11.1 million is left over, 1.4 percent of the county’s FY 2017 General Fund budget, excluding money appropriated to Arlington Public Schools.
The county collected just over $1.022 billion in revenue from property, business, sales taxes and other sources, having projected in April it would collect just over $1.004 billion. That is 1.8 percent more than projected.
RSVP today for one of the five remaining FY 2019 Budget Roundtables: https://t.co/3LMgasq8Qf pic.twitter.com/OF0Q5XsHR7
— Arlington County (@ArlingtonVA) October 10, 2017
