JUST IN: County reports another jump in residential property valuations | ARLnow
Arlington is seeing another big jump in residential property valuations this year, which should bolster county finances but hit local homeowners’ wallets.
While a county press release, below, described “modest” growth in Arlington’s property tax base, it was a tale of two property types.
For one, commercial real estate like office buildings and hotels, struggling with vacancy during the pandemic, rose just 0.6%. This is an improvement over last year, when commercial real estate fell by 1.4%.
Along with rising local home prices, residential real estate valuations are up 5.8%, the county said. This is above the 5.6% increase in residential assessments last year and the 4.3% increase the previous year.
“The increase in property values for this year shows the attractiveness of our Arlington community, even as our community continues to face the challenges posed by the ongoing COVID-19 pandemic,” said the manager of the county, Mark Schwartz, in a statement. The county’s press release notes that new construction “contributed 1% of the overall 3.4% growth in the tax base.”
The overall 3.4% increase in property values will result in a corresponding increase in property taxes, the county’s main source of revenue.
The increase in property taxes should help strengthen the county’s finances, as budget season gets started. In its press release, however, the county said rising labor costs, Covid challenges and other pressures “will continue to be a challenge to balancing the fiscal year 2023 budget.” .
Schwartz is set to present his recommended budget to the county council next month.
The full press release is below.
Arlington’s overall property tax base increased slightly from 2021 due to continued residential growth, while commercial values were relatively flat.
Measured growth in residential property values has supported the tax base, but the county continues to face challenges balancing the fiscal year 2023 budget due to the lingering effects of the COVID-19 pandemic.
Overall, the total assessed value of all residential and commercial properties in Arlington increased 3.4%, compared to 2.4% growth in 2021. Residential property values increased 5.8% in overall, while the value of commercial properties increased by 0.6%. Overall, new construction in the county contributed 1% of the overall 3.4% growth in the tax base.
“The increase in property values for this year shows the attractiveness of our Arlington community, even as our community continues to face the challenges posed by the ongoing COVID-19 pandemic,” said the manager of the County, Mark Schwartz.
Property taxes provide nearly 60% of the county’s total revenue. The county’s property tax base is roughly evenly split between residential (54%) and commercial (46%) property assessments.
The slight increase in commercial property valuations demonstrates some growth in our business market and a rebound closer to pre-pandemic levels. After experiencing double-digit declines in 2021, the value of hotel properties rose 5.6% as occupancy rates and room rates gradually recover from the initial effects of the pandemic.
The value of apartment properties also saw an improvement, increasing 5.3% over the previous year. Just under half of the growth was in new construction, reflecting continued demand for residential development.
The value of general commercial properties (malls, retail stores, gas stations, commercial condos) declined, reflecting the continued effects of the COVID-19 pandemic on retail stores and restaurants. Office property values also declined due to rising vacancy rates and changing demand for office space.
The 5.8% increase in residential property values took the average single-family home from $724,400 to $762,700. For CY 2022, approximately 73% of residential property owners saw their assessed value increase while the rest remained unchanged or decreased. Residential properties include condominiums, townhouses and single-family homes.
Notice of Assessment will be mailed to Arlington owners beginning January 14. Judging information will be available online Friday, January 14 after 11 p.m.
Nearly two years into the COVID-19 pandemic, the county continues to feel the economic impacts of the slow recovery of sales, dining, and hotel taxes, as well as related cost increases and incremental costs. to the pandemic. Spending pressures on transportation, social service needs, schools, workforce investment and many other county services will continue to be a challenge to balancing the fiscal year 2023 budget.
In October, Arlington County Council asked Schwartz to craft the fiscal year 2023 budget with several options, including:
- County workforce recognition with compensation adjustments.
- Continued focus on COVID-19 response to mitigate community health and safety needs and broader economic impacts.
- Support long-term efficiency and improvement in service delivery.
- Implement collective bargaining, recommendations from the Policing Practices Group and the Framework for Racial Equity, Climate Change and Sustainability.
- Continue to share tax revenue with Arlington Public Schools at the percentage set forth in the enacted fiscal year 2022 budget (53% county/47% school).
Schwartz will present his budget to the county council in February.