Board: Prince William home taxes will go down

By Cheryl Chumley

Published: November 18, 2008

Tax bills for Prince William homeowners will decrease between 6.6 percent and 18 percent in fiscal 2010, according to budget guidance discussions Tuesday at the Board of Supervisors meeting.

At the same time, commercial tax rates will rise on average by 5 percent — a “modest increase,” said Craig Gerhart, county executive, but one that is nonetheless difficult to qualify.

“It’s very hard to sort of create any average for commercial,” he continued, because each business value varies widely.

The focus is on percentages rather than rates, but the dollar figure that currently brings that residential drop is $1.13. That tax rate number could change, however.

Assessments right now are predicted to reflect an average fall in value of 30 percent for homes, but they could actually drop, say, 35 percent. The math then changes — but supervisors are clear the tax bills will decrease for residents by 6.6 percent, at minimum.

Other fiscal unknowns: More state funding cuts are on the way, but it’s too soon to nail down the actual amount localities will be tasked to find.

The fiscal 2010 budget itself will be presented in February, and the actual tax rate set for advertisement shortly after, Gerhart said. Project planning will take the next step in December, but recommendations then will be little more than to stop building.

“This CIP will be about what we’re not doing, rather than what we are doing,” Gerhart said.

Tuesday’s budget discussions were for guidance purposes only.

Prior to the board session, Chairman Corey Stewart, R-at-large, and Supervisor John Jenkins, D-Neabsco, held a brief press conference aimed at clarifying the nuts and bolts of the tax bill strategy.

“We’re coming here in a bipartisan effort to address the fiscal situation the county is in,” Stewart said. “We are providing residents a significant tax savings at a time when citizens are forced to tighten their belts. We think the government should be doing the same thing.”

The planned percentage decrease in tax bills translates into a savings of roughly $600 per home, he continued.

“In the current budget, the average tax bill is $3,420,” Stewart said. “The average tax bill [in fiscal 2010] will be $2,804” for residential.

Jenkins said the General Assembly did not have the authority to tax businesses at a different rate than residential. He also estimated the plan to halt all CIP projects, except those already under way or fully funded, would lead to $4 million in taxpayer savings for fiscal 2010.

Staff writer Cheryl Chumley can be reached at 703-670-1907.