Dan Genz, The Examiner
2007-12-20 08:00:00.0
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WASHINGTON -

Prince William County businesses are facing tax increases as much as 30 percent under a proposal to raise property tax rates.

Businesses are seeing their property values climb even as homeowners face widespread double-digit depreciation, County Executive Craig Gerhart said during a budget presentation Tuesday.

“Commercial bills will go up higher than others,” he said. “Whatever tax rate you set is going to be a real tax increase to commercial property.”

The Board of Supervisors is considering a budget designed to be funded by a tax increase of 22 cents, from 78.7 cents per $100 of appraised value to $1.008 per $100.

“This is a 25 percent to 30 percent increase in your property tax bill if you’re a business” that has seen steady or rising property values, said Chairman Corey Stewart, an ardent critic of the tax increase plan. “This could be a final straw, especially during a time when there is a looming recession.”

At the same time, the average homeowner would face only a 10 percent increase because houses are worth thousands of dollars less this year.

Business owners are concerned about facing such a steep tax rate increase, prominent developer Mike Garcia said.

“Now is not the time to break the back of the commercial builder,” Garcia said, adding that builders may have to look for communities with lower tax burdens.

But supervisors said the budget is not final and will be used to address core priorities for businesses including more road projects and school programs.

At a glance

» Current tax rate: 78.7 cents per $100 of property value

» Proposed tax rate: $1.008 per $100 of property value

dgenz@dcexaminer.com