UPDATED december 2020
Virginia Property Tax Liability Likely to Increase
With most Virginia jurisdictions in the midst of finalizing their 2021 assessments, municipal budget woes precipitated by COVID-19 are likely to result in a higher real estate tax burden for Virginia property owners in the coming year.
While most of the large Virginia jurisdictions delayed projected tax rate increases in 2020 as a result of the Coronavirus lockdowns, the most recent budget forecasting sessions have emphasized the rising costs of programs and services. With retail vacancies projected to see significant increases and office and multi-family rents flat to declining, most jurisdictions are looking at projected revenue that is not sufficient to cover existing debt service, compensation and prior commitments, even before addressing any further priorities.
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.