Virginia Property Tax Update Archive

UPDATED september 2019

Virginia Year-End Deadlines Approaching

In Virginia, taxpayers typically have three years from the last day of the tax year for which an assessment is made to appeal the assessment to the appropriate Circuit Court.  In most of the large jurisdictions in Virginia, the tax year corresponds with the calendar year.  As a result, most taxpayers have until December 31, 2019 to appeal their 2016 assessments to Circuit Court.  The majority of Virginia locales do not require an administrative appeal before filing to court (the City of Alexandria being a notable exception); however, if you believe your 2016 assessments overstated the value of your properties or otherwise did not fully account for the impact of market conditions, please contact us to review the case and determine whether an appeal can or should be filed before the end of the year.

This email address is being protected from spambots. You need JavaScript enabled to view it.  202-457-7804
This email address is being protected from spambots. You need JavaScript enabled to view it.  202-457-7806
Wilkes Artis, Chtd.
American Property Tax Counsel (APTC)

UPDATED March 2019

2019 Appeal Deadlines Approaching

The 2019 assessments have been released in all Northern Virginia jurisdictions, and now is the time for property owners to focus on potential appeals.  In Arlington County, the assessed values of commercial office properties are up 4.3%.  In the City of Alexandria, commercial assessments are up approximately 2.70%.  Fairfax County has increased non-residential assessments by 5.19%, and Loudoun County commercial assessments are up 7.66%.  Arlington County has proposed an increase in the real estate tax rate for the current tax year, while Fairfax County and the City of Alexandria are expected to remain flat.  Those rates will be reviewed and potentially adopted over the next several weeks.

Because market conditions have not drastically changed, the changes in assessed value may not adequately reflect the current value of a particular property.  Assessment appeal deadlines are coming up in Arlington County (April 15), and in Fairfax County, Alexandria and Loudoun County (June 3).  To discuss the merits of an appeal of your assessment, please contact us at the numbers listed below.

Mark Rogers
202-457-7804

Ilene Boorman
202-457-7806

Wilkes Artis, Chtd.
American Property Tax Counsel (APTC)

UPDATED september 2018

Virginia Year-End Deadlines Approaching

In Virginia, taxpayers typically have three years from the last day of the tax year for which an assessment is made to appeal the assessment to the appropriate Circuit Court.  In most of the large jurisdictions in Virginia, the tax year corresponds with the calendar year.  As a result, most taxpayers have until December 31, 2018 to appeal their 2015 assessments to Circuit Court.  The majority of Virginia locales do not require an administrative appeal before filing to court (the City of Alexandria being a notable exception); however, if you believe your 2015 assessments overstated the value of your properties or otherwise did not fully account for the impact of market conditions, please contact us to review the case and determine whether an appeal can or should be filed before the end of the year.

This email address is being protected from spambots. You need JavaScript enabled to view it. 202-457-7806
This email address is being protected from spambots. You need JavaScript enabled to view it. 202-457-7804

Wilkes Artis, Chtd.Wilkes Artis, Chtd.
American Property Tax Counsel (APTC)

UPDATED june 2018

Northern Virginia Tax Rates Adopted for 2018

The four large Northern Virginia jurisdictions finalized their 2018 real estate tax rates in April and May.  Fairfax County increased its base rate from 1.13% to 1.15%.  After two years of fairly significant increases, the City of Alexandria kept rates flat for 2018 at 1.13%.  Arlington County also left their base rate unchanged for 2018 at .993%.  For the second consecutive year, Loudoun County is the only large jurisdiction in the region to lower rates (from 1.125% in 2017 to 1.085% for 2018). 

For many owners, additional tax burdens are layered upon these base rates which include: transportation taxes of .125% in both Fairfax and Arlington Counties, and special district taxes throughout the region including Potomac Yard in Alexandria, Tysons Corner and Reston in Fairfax County, various Business Improvement Districts in Arlington and Route 28 in Loudoun County.

For specific guidance on how your properties are affected by the new rates, please contact us.

This email address is being protected from spambots. You need JavaScript enabled to view it. 202-457-7806
This email address is being protected from spambots. You need JavaScript enabled to view it. 202-457-7804

Wilkes Artis, Chartered
American Property Tax Counsel (APTC)

UPDATED march 2018

2018 Appeal Deadlines Approaching

The 2018 assessments have been released in all Northern Virginia jurisdictions, and now is the time for property owners to focus on potential appeals.  In Arlington County, the assessed values of commercial office properties have decreased slightly while multi-family assessments are generally up.  In the City of Alexandria, commercial assessments are up slightly while apartment values have increased almost 8.0%.  Fairfax County has increased both commercial and multi-family assessments on average by about 3.0%.  Fairfax County has proposed an increase in the real estate tax rate for the current tax year, while Arlington and Alexandria are expected to remain flat.  Those rates will be reviewed and potentially adopted over the next several weeks.

Because market conditions have not drastically changed, the changes in assessed value may not adequately reflect the current value of a particular property.  Assessment appeal deadlines are coming up in Arlington County (April 16), and in Fairfax County, Alexandria and Loudoun County (June 1).  To discuss the merits of an appeal of your assessment, please contact us at the numbers listed below.

This email address is being protected from spambots. You need JavaScript enabled to view it. 202-457-7806
This email address is being protected from spambots. You need JavaScript enabled to view it. 202-457-7804
Wilkes Artis, Chartered
American Property Tax Counsel (APTC)

UPDATED September 2017

Virginia Year-End Deadlines Approaching

In Virginia, taxpayers typically have three years from the last day of the tax year for which an assessment is made to appeal the assessment to the appropriate Circuit Court.  In most of the large jurisdictions in Virginia, the tax year corresponds with the calendar year.  As a result, most taxpayers have until December 31, 2017 to appeal their 2014 assessments to Circuit Court.  The majority of Virginia locales do not require an administrative appeal before filing to court (the City of Alexandria being a notable exception); however, if you believe your 2014 assessments overstated the value of your properties or otherwise did not fully account for the impact of market conditions, please contact us to review the case and determine whether an appeal can or should be filed before the end of the year.

Ilene Baxt Boorman
Mark F. Rogers
Wilkes Artis, Chartered
American Property Tax Counsel (APTC)

UPDATED JULY 2017

Northern Virginia Tax Rates Adopted for 2017

The four large Northern Virginia jurisdictions finalized their 2017 real estate tax rates in April and May.  The largest increase is in the City of Alexandria which hiked rates from 1.073% to 1.13%.  With this spike, the City has increased rates by over 8% in just two years. Arlington County increased rates slightly from .991% to .993%.  Fairfax County has kept the base rate flat for 2017 after it had climbed from 1.09% in 2015 to 1.13% in 2016.  Loudoun County is the only large jurisdiction in the region to lower rates (from 1.145% in 2016 to 1.125% for 2017). 

For many owners, additional tax burdens are layered upon these base rates which include: transportation taxes of .125% in both Fairfax and Arlington Counties, and special district taxes throughout the region including Potomac Yard in Alexandria, Tysons Corner and Reston in Fairfax County, various Business Improvement Districts in Arlington and Route 28 in Loudoun County.

For specific guidance on how your properties are affected by the new rates, please contact us.

Ilene Baxt Boorman
Mark Rogers
Wilkes Artis, Chartered
American Property Tax Counsel (APTC)

UPDATED MARCH 2017

2017 Appeal Deadlines Approaching

The 2017 assessments have been released in all Northern Virginia jurisdictions, and now is the time for property owners to focus on potential appeals.  In Arlington County, the assessed values of commercial properties have remained relatively flat while the City of Alexandria has increased assessments slightly (0.3% on average).  In Fairfax County, commercial assessments are down on average by about 1.4%.  All three jurisdictions have proposed increases in the real estate tax rates for the current tax year.  Those rates will be reviewed and potentially adopted over the next several weeks.

Because market conditions have not drastically changed, the changes in assessed value may not adequately reflect the current value of a particular property.  Assessment appeal deadlines are coming up in Arlington County (April 17), and in Fairfax County, Alexandria and Loudoun County (June 1). To discuss the merits of an appeal of your assessment, please contact us at the numbers listed below.

Ilene Boorman (202) 457-7806
Mark Rogers (202) 457-7804
Wilkes Artis, Chtd.
American Property Tax Counsel (APTC)

Updated December 2016

Virginia Property Tax Liability Likely to Increase

With most Virginia jurisdictions in the midst of finalizing their 2017 assessments, continuing municipal budget woes are likely to result in a higher real estate tax burden for Virginia property owners in the coming year.

Recent budget forecasting sessions in Fairfax County (the Commonwealth’s largest jurisdiction) emphasized the limited growth in real estate tax revenues and the rising costs of programs and services.  As office vacancy rates continue to hover around historical highs, officials conceded that projected revenue is not sufficient to cover the county’s debt service, compensation and prior commitments requested by the Board of Supervisors. Even, before addressing any further priorities, the deficit is estimated to be over $14 million.

For real estate tax purposes, this is likely to result in assessors relying  upon atypical transactions to draw broad market conclusions in order to justify above-market assessments for specific properties.  Combining this valuation approach with the likelihood of tax rate increases, results in an increase in tax liability for many owners. 

For guidance on your specific property, please do not hesitate to contact us.

Ilene Boorman 202-457-7806
Mark Rogers 202-457-7804
Wilkes Artis, Chartered
American Property Tax Counsel (APTC)

Updated September 2016

New Legislation Grants Access to Vital Information in Assessment Appeals

The Virginia General Assembly recently passed new legislation that allows taxpayers access to proprietary information under a protective order when appealing their assessment to the Circuit Court.

While jurisdictions have previously been able to avoid disclosing information regarding the manner in which an assessment was determined, the new legislation helps to level the playing field for aggrieved taxpayers appealing local government assessments at the Circuit Court level of appeal.  Following the required issuance of a protective order (maintaining the confidentiality of the information released), the local jurisdictions are now required to release information on such matters as capitalization rates derived from sales, and market rents and expenses used in determining the assessment being challenged.

Because Virginia law provides a presumption of validity to the assessment, jurisdictions had been hiding behind the confidentiality provisions to prevent the taxpayer from accessing the information needed to challenge the presumption.

Please call to discuss how the new law may affect a potential appeal of your property.

Ilene Boorman (202-457-7806)
Mark Rogers (202-457-7804)
Wilkes Artis, Chartered 
American Property Tax Counsel (APTC)

Updated June 2016

Northern Virginia Tax Rates Adopted for 2016

The four large Northern Virginia jurisdictions finalized their 2016 real estate tax rates in April and May. With the exception of Arlington County, rates are up across the region. The largest increase is in Fairfax County where the base rate has climbed from 1.09% in 2015 to 1.13% in 2016. The City of Alexandria has increased its base rate from 1.043% to 1.073%, while the base rate in Loudoun County ticked up slightly from 1.135% to 1.145%. In Arlington County the base rate declined from .996% to .991% in 2016.

For many owners, additional tax burdens are layered upon these base rates which include: transportation taxes of .125% in both Fairfax and Arlington Counties, and special district taxes throughout the region including Potomac Yard in Alexandria, Tysons Corner in Fairfax County, various Business Improvement Districts in Arlington and Route 28 in Loudoun County.

For specific guidance on how your properties are affected by the new rates, please contact us. 

Ilene Boorman (202-457-7806)
Mark Rogers (202-457-7804)
Wilkes Artis, Chartered 
American Property Tax Counsel (APTC)

Updated March 2016

2016 Appeal Deadlines Approaching

The 2016 assessments have been released in all Northern Virginia jurisdictions, and now is the time for property owners to focus on potential appeals. In Arlington County, the assessed values of commercial properties have increased approximately 2.2% on average while the City of Alexandria and Fairfax County have imposed average increases of 1.5% and 3.4% respectively. In Loudoun County, commercial assessments have increased by just 1.25%. Multi-family assessments have increased an average of nearly 5% across the region. Because market conditions have not drastically improved, the changes in assessed value may not adequately reflect the current value of a particular property. Assessment appeal deadlines are coming up in Arlington County (April 15), and in Fairfax County, Alexandria and Loudoun County (June 1). To discuss the merits of an appeal of your assessment, please contact us at the numbers listed below.

Ilene Boorman (202-457-7806)
Mark Rogers (202-457-7804)
Wilkes Artis, Chartered 
American Property Tax Counsel (APTC)

Updated December 2015

Condemnation Proceedings Continue Along Dulles Rail Route

Phase II of the Dulles Metrorail project completing the 24 mile connection between East Falls Church in Arlington County and the Route 772 station in eastern Loudoun County is underway. Additional condemnation proceedings affecting properties along the second stage of the route, which includes stations serving the Reston Town Center and Dulles Airport, must be completed as part of the project.

As property owners along the corridor are notified about potential eminent domain proceedings, they should review their leases to determine whether the action would trigger relocation provisions for their tenants. Other zoning and future development issues may be raised by the condemnation as well.

In any eminent domain proceeding, property owners should consult with experienced counsel to address these issues as well as to insure that they receive appropriate compensation in exchange for the taking.

For specific questions regarding your Virginia property, please contact:

Ilene Boorman (202-457-7806)
Mark Rogers (202-457-7804)
Wilkes Artis, Chartered 
American Property Tax Counsel (APTC)

Updated March 2015

Appeal Deadlines Approaching on 2015 Assessments

With the release of the 2015 assessments, the time is now for property owners in Northern Virginia to focus on the potential to appeal. In Arlington and Fairfax Counties, the assessed values on commercial properties are down approximately 4.5%. In Alexandria, commercial values have increased slightly (.6%) while Loudoun County commercial assessments have increased by more than 5.5%. Multi-family assessments increased an average nearly 4% across the region. Tax rates are expected to remain relatively flat.

Because market conditions have not drastically improved – and in some instances have continued to deteriorate – the modest changes in assessments may not adequately reflect the current value of a particular property. Assessment appeal deadlines vary from jurisdiction to jurisdiction and are quickly approaching. To determine the appeal deadline in your jurisdiction or to discuss the merits of an appeal of your assessment, please contact us at the numbers listed below.

Ilene Boorman
Mark Rogers
Wilkes Artis, Chtd Wilkes Artis, Chtd.
American Property Tax Counsel (APTC)

Updated September 2013

Virginia Year-End Deadlines Approaching

In Virginia, taxpayers typically have three years from the last day of the tax year for which an assessment is made to appeal the assessment to the appropriate Circuit Court. In most of the large jurisdictions in Virginia, the tax year corresponds with the calendar year. As a result, most taxpayers have until December 31, 2013 to appeal their 2010 assessments to Circuit Court.

The majority of Virginia locales do not require an administrative appeal before filing to court; however, if you believe your 2010 assessments did not fully reflect the decline in values associated with the financial crisis of 2008 and the impact of the Great Recession, please contact us to review the case and determine whether an appeal can or should be filed before the end of the year.

Ilene Baxt Boorman
Wilkes Artis, Chtd. 
American Property Tax Counsel (APTC)

Updated June 2013

Virginia 2013 Rates Continue Upward Trend

The three large Northern Virginia jurisdictions finalized their 2013 real estate tax rates in April and May. In Arlington County, the base rate has increased from .971% in 2012 to 1.006% for 2013. In the City of Alexandria, the rate has increased from .998% to 1.038%, and Fairfax County has grown their base rate from 1.075% to 1.085%. The cumulative effect is significant. The base tax rate has grown 18.63% in Arlington County over the last five years while the rate in Alexandria has gone up 22.84% over the same period. Fairfax County has increased their base rate 17.81% since 2008.

For many taxpayers, additional tax burdens are layered upon these base rates which include: the Dulles Rail Phase II tax rate increase from .15% in 2012 to .20% in 2013, the new Tyson's Service District tax which will be imposed on the second half 2013 tax bill at a rate of .02%.
For specific guidance on how your properties are affected by the new rates, please contact us.

Updated March 2013

Virginia Assembly Passes Property Tax Legislation

The recently concluded session of the Virginia Assembly included passage of several legislative items of interest. With the goal of leveling the playing field, Wilkes Artis worked with a local trade organization to successfully pass legislation that protects property owners from retaliatory assessment increases on appeal by requiring assessors to provide a third-party appraisal in support of any proposed increase before it can be adopted by a board of equalization (except in the case of a mistake of fact). The bill also makes it easier for property owners to designate a representative and insures that the most recent income and sales information can be introduced at hearings.

Finally, the legislation tightens the qualifications associated with qualifying as an expert member of a board of equalization in the largest Virginia jurisdictions. For guidance on how this new legislation may benefit your property in the assessment appeal process, please call.

Updated December 2012

New Tyson's Corner Transportation Tax Coming

The Fairfax County Board of Supervisors recently endorsed a plan recommended by the Planning Commission to create a new service district to fund transportation infrastructure improvements related to the ongoing redevelopment of the Tyson's Corner Urban Center. The plan seeks over a billion dollars over the next forty years with private sector contributions to fall equally on new developments and existing property owners (residential and commercial).

The most recent version of the proposal indicates an additional tax of 7 to 9 cents per $100 of assessed value for properties located in the district beginning in 2013. The final vote by the Board of Supervisors is currently scheduled for January 8, 2013. For guidance on whether your property may be located within the new district and how the new rates may affect your specific overall tax liability, please call.

Updated June 2012

Will Another Tax District Impact Tysons Corner Properties?

Fairfax County is circulating a draft proposal for funding transportation improvements associated with the redevelopment of Tysons Corner. This plan, if adopted, would divide the anticipated transportation infrastructure costs between existing buildings and ne development projects. If the new service district is approved residential and commercial property owners in Tysons Corner could see as much as 29 cents per hundred dollars of assessed value added to their real estate tax rate. Tysons Corner commercial property owners (excluding apartment properties) are currently taxed at one of the highest rates in the County at $1 .426 per $100 of assessed value in 2012. The Planning Commissions strawman funding plan can be accessed at http://www.fairfaxcounty.gov/planning/tysonsdocs/tysonscornerstrawmanO6l4l2.pdf.

Updated March 2012

New Rates and Assessments Drive Increase in Tax Liability

Across Northern Virginia, commercial property owners will be subject to increased property tax liabilityin 2012 due to increases in both assessments and tax rates. The assessment hikes are led by multifamily properties which have typically seen assessed values grow between 10-20 percent from the 2011 levels while the assessments on commercial office properties have typically increased by 8-12 percent. In addition to the increased assessments, tax rates are expected to increase in several jurisdictions. Arlington County has advertised a $.02/$100 increase from their 2011 rate. Fairfax County has advertised increases in both their base rate and stormwater management rate by $.01/$100.

Commercial properties within the Dulles Rail Phase II district will also see a $.05/$100 increase in their rate as part of the extension of the Metro to Dulles Airport. For guidance on how the new assessments and rates affect your specific overall tax liability, please call.

Updated September 2011

Accurate FMV Hard to Find in Virginia

Virginia's real estate recovery or lack thereof has been submarket specific. Most jurisdictions use jurisdiction-wide guidelines resulting in assessments in excess of fair market value (FMV) in submarkets that have not recovered. The use of inappropriate county-wide guidelines is then used by the government to assert that all assessments are uniform and therefore correct. The problem is that this position is appealing to less sophisticated board members who do not recognize that while uniformity is preferred no assessment should be in excess of FMV.

Compounding this inequity is jurisdictional intransigence throughout the appeal process. Even in cases of obvious error, governments, ever protective of their revenue, are increasingly unwilling to make corrections absent a demonstrated willingness to litigate. Lacking appropriate reductions in reassessments, many property owners have been forced to file appeals annually in an effort to persuade local taxing authorities to recognize the true FMV and reduce assessments accordingly.

Updated March 2011

Supplemental Rates Increasing Tax Liability

While base tax rates are advertised to increase only slightly, Northern Virginia jurisdictions are increasingly supplementing the commercial real estate tax rates with special taxing districts and commercial specific add-ons as a means of stemming budget shortfalls and generating more revenue.  In Arlington County, the new Ballston BID goes into effect this year adding an additional $0.045/id="mce_marker"00 of assessed value to the commercial tax rate.  The City of Alexandria is proposing a $0.125/id="mce_marker"00 transportation tax for all commercial properties.  And the Dulles Rail Phase II tax will increase to $0.10/id="mce_marker"00 for affected properties in Fairfax County.

Combining these new rates with higher assessments has resulted in increased tax liability for commercial property owners in most Northern Virginia jurisdictions.

Please call for guidance to determine what additional rates may apply to your specific property and how the new assessments affect your overall tax liability.

Updated December 2010

Virginia Property Tax Increases Likely

With most Virginia jurisdictions in the midst of finalizing their 2011 assessments, recent transactions and continuing municipal budget woes are likely to result in a higher real estate tax burden for Virginia property owners in the coming year.

In the past, Virginia assessors have relied upon atypical transactions to draw broad market conclusions in order to justify above-market assessments for specific properties. While office vacancy rates have increased and rental rates have dropped when viewing the market as a whole, a handful of recent trades may ultimately be cited by assessors as support for holding the line on assessed values.

Combine this anticipated approach to value with the likelihood of tax rate increases estimated at $0.05-$0.10/$100 of assessed value and the increase in property owners' tax bills is apparent.

Please call for guidance on your specific property as these are generalized projections.

Updated September 2010

Uniformity and Fair Market Value

The Supreme Court of Virginia has provided guidance concerning uniformity and fair market value - the preference for uniformity must stop short of assessments in excess of fair market value. This means that an assessment should be:

• uniform with the assessments of similar properties even if it is below the property's fair market value; or,
• no higher than the property's fair market value even if it is less than the assessment of similar properties.

Boards frequently adopt values which are:

• in excess of fair market value but are uniform; or,
• that are at fair market value but are not uniform.

Assessments in excess of fair market value or those which are not uniform should be reviewed for potential judicial appeal as owners are entitled to have their property assessed at the value which is the lower of the property's uniform or fair market value.

Updated March 2010

Legislative Progress in Virginia

Property owners in Virginia have complained about surprises at Board of Equalization hearings including requests to increase assessments and evidence provided for the first time to support the challenged assessments.

Changes adopted by the General Assembly and expected to be signed into law should help to mitigate the risk and bring an element of fairness to appeals before Virginia's Boards of Equalization. These changes include the following:

• a fourteen day notice period before a jurisdiction can request an increase in the assessment;
• a prohibition against the jurisdiction introducing evidence at the hearing to support the assessment which was been previously requested by the appellant but was not provided to it;
• a requirement for an independent appraisal to support a request to increase in assessment.

There are additional changes associated with appeals before the Board of Equalization and the assessment of affordable housing. Please call for more details.

Updated December 2009

Property Owners Should Plan for Increased Tax Rates in 2010

As property values fall, owners prepare for increases in real estate tax rates. A summary of what we expect in major Northern Virginia jurisdictions follows:

Arlington County: Anticipate average decline in 2010 assessed values of approximately 14% for commercial properties and an increase in the base tax rate of $0.05-$0.075/$100 of assessed value.

Fairfax County: Anticipate average decline in 2010 assessed values of approximately 18% for "Nonresidential" and an increase in the base tax rate of $0.105-$0.15/$100 of assessed value.

City of Alexandria: Anticipate average decline in 2010 assessed values of approximately 13% for commercial properties and an increase in the base tax rate of $0.05-$0.075/$100 of assessed value.

Loudoun County: Anticipate an overall decline in 2010 commercial assessments of approximately 5% and an increase in the base tax rate of $0.06 to $0.14/$100 of assessed value.

These are estimates only. Please call for guidance before relying on the above.

Updated September 2009

Another New Tax – This one to Fund Phase II of Dulles Metrorail

In order to fund its $330,000,000 portion of the second phase of the Dulles Metrorail project, Fairfax County is attempting to create a new taxing district by gathering petition signatures from property owners representing 51% of the assessed value of the commercial property within the district boundary.

Once created, the county will have the authority to levy taxes on commercial properties within the district beginning in 2010 at a rate of five cents ($0.05) per hundred dollars ($100) of assessed value and escalating upwards at five cents per year until 2013 when the rate will be twenty cents ($0.20) per one hundred dollars ($100) of assessed value. If all of the construction prerequisites are met, this initial tax will be replaced by a regular tax established each year at the rate required to meet the district's obligations, but not intended to exceed twenty-five cents ($0.25) per one hundred dollars ($100) of assessed value.

Updated March 2009

Virginia Property Owners Face Property Tax Increases

Refinancing is all but impossible. Assets are not trading. What is the fair market value of a property? According to assessment offices throughout Virginia, not much has changed – most assessments are even or only slightly down. Adding to the challenges owners face are increased real estate tax rates.

Most jurisdictions are in the final stages of preparing the 2010 budget on which the calendar year 2009 tax rate will be based. Look for tax rates to increase more than assessments have fallen. The result for many properties is higher taxes per square foot and assessments in excess of fair market value.

Why? Generally, it is because jurisdictions have ignored the year-over-year increase in capitalization rates. Most localities have kept the capitalization rate the same or made only a token adjustment – fifty basis points or less. Also impacting assessments is the failure to recognize reduced net effective rent and increased vacancy.

Updated December 2008

Virginia Law Allows for Appeal of Prior Years' Real Estate Tax Assessments

During this time of unprecedented stress in the capital markets and the overall economy, many property owners are struggling to protect the bottom line. One often overlooked source of income is previously overpaid real estate taxes. Unbeknownst to many owners, Virginia allows taxpayers to challenge assessments from previous tax years.

The Code of Virginia allows the appeal of real estate taxes for a period of up to three years from the last day of the assessment year. For example, property owners could appeal their 2005 tax assessment until December 31, 2008, their 2006 assessment until December 31, 2009, and so forth. However, a handful of jurisdictions require appeal to the local Board of Equalization, and a few further restrict appeal rights to two years after the year in which the taxpayer was aggrieved. Wilkes Artis specializes in assisting aggrieved taxpayers navigate the administrative and judicial appeal process.

Updated June 2008

New Tax Targets Commercial Property Owners

Owners of commercial property (multi-family residential excluded) in Fairfax and Arlington Counties are being assessed for the first time with a new tax. This tax is commonly referred to as the transportation tax. The proceeds of the tax are to be used to reduce congestion. Like all Virginia real estate taxes, the tax rate is adopted by the jurisdiction in which it is imposed. In Fairfax County the additional rate is eleven cents per hundred dollars of assessed value; in Arlington it is twelve and one-half cents per one hundred dollars of assessed value.

This new tax results in significant increases over last year's base tax rates of 12% in Fairfax and 15% in Arlington. Other jurisdictions will likely follow the lead of Arlington and Fairfax in 2009. Watch for additional taxes in the Cities of Alexandria and Fairfax.

Updated March 2008

Substantial Increases Expected in Commercial Property Tax Liability

Northern Virginia property owners are bracing for double-digit increases in their commercial property tax liability. Increases are driven by increased assessments, anticipated increases in tax rates and possible imposition of an additional tax on commercial property (multi-family excluded) to fund transportation in Arlington and Fairfax Counties and Cities of Alexandria and Fairfax. Each jurisdiction prepares and mails its own notices of assessment. Most notices will be mailed before the end of March.

If you have recently purchased a property, be sure to file a change of address with the jurisdiction by certified mail return receipt requested. Unless a written change of address notice is on file with the jurisdiction, the jurisdiction may send the notice and the bill to the wrong address. Failure to receive the tax bill from the jurisdiction is not considered sufficient cause to waive the penalties and interest on a late tax payment.

Updated December 2008

Northern Virginia Transportation Tax Update

A new Virginia Code provision permits certain jurisdictions in Northern Virginia to impose an additional tax on commercial real estate (multi-family excluded) to fund transportation improvements of up to $0.25/$100 of assessed value.

Answers to frequently asked questions:

What jurisdictions have adopted an ordinance allowing it to impose the tax in 2008? Fairfax and Arlington Counties and the City of Fairfax.

What jurisdictions are considering adopting an ordinance effective 2008? Cities of Alexandria and Manassas Park.

What Northern Virginia jurisdictions are not expected to pass an ordinance effective 2008? Counties of Loudoun and Prince William and City of Falls Church. However, they could pass an ordinance that would be effective in 2009.

Should we budget for this tax in 2008? It may be prudent to budget for the imposition of this tax in the following jurisdictions: Arlington and Fairfax Counties and the Cities of Alexandria, Fairfax and Manassas Park.

Updated September 2008

Additional Real Property Tax Authorized in Virginia

A new Virginia Code provision permits Northern Virginia jurisdictions to adopt an ordinance imposing an additional tax of up to $0.25/$100 of assessed value on retail, office, hotel and industrial properties. Jurisdictions in the Tidewater area may adopt an ordinance increasing assessments on these property types by as much as $0.10/$100 of assessed value.

This measure is aimed at funding transportation related improvements in the jurisdiction imposing the tax. To be effective in 2008, an ordinance must be adopted in calendar year 2007. Adoption does not automatically impose the tax or raise the rate on commercial properties. Instead, it provides the legal framework for the jurisdiction to adopt an additional tax in subsequent years. The first year such a tax may be imposed is 2008.

The first Northern Virginia jurisdiction to adopt such an ordinance is Fairfax County. Other Northern Virginia jurisdictions may soon follow Fairfax's lead.