Dan Genz, The Examiner
2008-04-01 08:00:00.0
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WASHINGTON -

Prince William County would bring in $75 million more in real estate taxes next year under the Board of Supervisors’ plan to raise property taxes 27 percent.

Countywide property values fell just 8.5 percent last year, although the value of single-family houses dropped 15 percent, according to new assessments mailed out Monday.

That means the revenue generated by higher real estate taxes would rise 16.5 percent from last fiscal year despite the drop in the housing tax base, officials said.

The sharp 15-percent drop in home values that drive property taxes have overshadowed the growth in other areas, including the addition of 3.5 million square feet to the commercial property tax base and the appreciation of apartment buildings and businesses.

The commercial tax base increased 11 percent last year, while existing businesses saw their property values climb about 4 percent. Also, apartments bucked the overall residential downturn, with values surging more than 8 percent.

Business owners are asking the county to reduce its proposed 21-cent tax rate increase. Supervisors advertised a tax rate of $1 per $100 of assessed value, up from 78.7 cents per $100 this year.

“We would still love to see that rate come down a few more cents,” said Brian Gordon, vice president of the Apartment and Office Building Association of Metropolitan Washington. “Not only is the tax rate going to be increasing sharply, but you also have assessments increasing.”

But because houses, town houses and condos account for 79 percent of the county’s tax base, residential properties have dominated the discussions. Homeowners saw the value of the average $414,000 house dive nearly 15 percent to about $352,500. Under the advertised rate, the tax bill for the average homeowner would increase 8.25 percent, or $266.

“Whenever your tax base decreases, that’s a pretty remarkable event that must be dealt with,” said Chris Martino, the county’s director of finance.

Other tax revenues the county cannot control are also falling, including sales taxes, investment taxes, utility taxes and recordation taxes, Martino said.

At the same time, supervisors are trying to fund a new crackdown on illegal immigration, raise teacher salaries 6 percent, add 125 public safety positions and build a new $95 million high school.

dgenz@dcexaminer.com