Loudoun County Tax Rate Increasing for 2010
November 18, 2008 by Danilo Bogdanovic
Filed under Taxes
Loudoun County's real estate property tax rate will increase in 2010 to meet the current and future needs of the county's school system and other programs. There is a large budget shortfall due to an average drop of 8 percent in residential values and 2 percent in commercial values. In reality, it's due to poor planning on the part of Loudoun County, but that's a discussion for another time…
According to the Loudoun County school system and county officials, the county needs to raise the tax rate to at least $1.26, if not $1.35 per $100 of assessed value. The current rate is $1.14, which is a 19% increase from $0.94 just two years ago.
Should the tax rate be raised to $1.26, that would be a 34 percent increase in just three years. If the tax rate were raised to $1.35, that would be a 44 percent increase.
On a side note…in this area, only the Town of Leesburg and Manassas Park have higher tax rates than Loudoun County ($1.32 and $1.27). Should the increase to $1.35 occur, Loudoun would have the highest tax rate in the area. Remember when Loudoun was attractive to home buyers due to having a lower tax rate than Fairfax? So much for those days…
The Loudoun County school system posted an article on their web site about this issue. Here's an excerpt:
Loudoun County Deputy Chief Financial Officer Ben Mays detailed the budget outlook that was presented by County Administrator Kirby Bowers to the Board of Supervisors and the School Board earlier in the week. Figures contained in this analysis include:
- At the current real estate tax rate of $1.14 per $100 of assessed value, the county government would face a revenue shortfall of $27 million and the school system a shortfall of $70 million in Fiscal Year 2010. That shortfall would come from the funding level of this year's budgets.
- A tax rate of $1.26 is necessary to get the county government and school system back to the same funding level as this year.
- A tax rate of $1.35 would be needed to accommodate the anticipated increase in budget items, including school enrollment growth. (This rate would not fund raises or new programs, but would cover things such as increased insurance and retirement costs on current county employees.)
Will Loudoun County home owners pay the higher tax rate? According to some, they will because they want a higher level of service and are willing to pay for that. But it may affect the decision of future home buyers who may view Loudoun as less attractive than before due to higher taxes and a higher monthly house payment.
Whatever the Loudoun County tax rate increase for 2010 will be, there is sure to be one and it will go into effect July 1, 2009.
Ann on Wed, 4th Nov 2009 7:29 pm
If you stop building wall to wall condo units you wouldn’t need more schools, more hospitals, more roads, more, more. If developers want to increase homes and condos they must also build a school nearby plus hospital. If people want to move into the county up the taxes on brand new units. You are taxing older residents out of the county.
Danilo Bogdanovic on Wed, 4th Nov 2009 7:43 pm
Ann - I sense your frustration and I’ve heard similar things from others. One idea I’ve heard thrown around a lot is bringing companies/businesses into the county which will help offset real estate taxes with business taxes. Loudoun has repeatedly lost companies/businesses to Fairfax, Prince William and Montgomery counties over the years and it’s hurt the tax base in the county.
Dee on Sat, 23rd Jan 2010 11:14 pm
A lot of people will be forced to sell and move away. After a cut in our pay we can just about afford our mortgage now as is….we have 3 young children and I am not for raising taxes now. Raising taxes is not the way forward.
Karen on Wed, 27th Jan 2010 9:21 pm
Residential tax rate is $1.04 for Fairfax. There is no excuse for Loudoun being 20 cents higher. I was on the strategic planning committee in my community and was involved in calculating new development contributions in the Dulles Corridor area. Loundoun has consistently encouraged residential building as opposed to businesses in this area. Roads rated “D” and “F” with no real relief in sight.
Lori on Sun, 31st Jan 2010 1:07 pm
There is no limit to these taxes, until they drive us out. At my son’s middle school, there is a Principal, 2 Vice Principals, and 3 Deans. This isn’t college, tell me why they need this many administrators? Is this being responsible with the budget? It’s time for Loudoun to reign it in. Schools are important, but they need to be managed to a budget, just like the rest of us. I personally have had enough of Loudoun County and their free spending.
Dee Murray on Wed, 17th Feb 2010 3:11 pm
So property values went down and the county raises taxes for everyone….wrong answer…Those new residents needing the new schools and roads should pay including the builders. In California it’s called a Mello Roes tax and usually requires a 30 year bond to cover the cost. Why is the county charging me for something my community will not be using. The county is using the wrong formula and I will move out. This is not socialism. Nor should grandma and grandpa be paying for developments more than 2 miles away that they didn’t ask for.
EggNogAdam on Wed, 24th Feb 2010 1:31 pm
Hmmmm. I have been trying to decide what’s the right course of action for this area. It’s a tough one, for sure. I live here and I’ll pay the increase even though my home value has gone down by 42%, but I’ll also be eyeballing the nearby areas for potential moving-into-awesomeness. My wife is a teacher and I can’t even explain why a school needs 1 Principal, 2 VP’s and any Deans, let alone 3 Deans. Unless a Dean is a working educator that is just accepting another role outside the classroom. Schools are a tricky area too. They draw people into the area so we must keep them ‘good’ to ‘great’ but… Man. It’s a pickle, that’s for sure.
Bruce on Wed, 24th Feb 2010 4:48 pm
It’s time to eliminate all unnecessary spending. Families are struggling to survive, to keep food on their tables, to pay their mortgages, and possibly even staying one step ahead of financial ruin. I’m extremely disappointed in our elected officials’ abilities to responsibly represent the tax payers of Loudoun. There are times when expanding programs may be acceptable and it is not now. Expanding government and programs never seem to shrink when times get tough (for example now). Instead spending expands, programs expand, costs go up.
It is time for government to tighten their belts just as other individuals, families, organizations, and companies must do. You cannot spend what you don’t have!
And, increasing tax rates in an attempt to make up for the erosion of tax income due to reduced assessed home value is a repulsive act. It negatively effects every home-owner in Loudoun County.
They have to STOP IT!!!!
Danilo Bogdanovic on Fri, 26th Feb 2010 11:44 am
Many share your same sentiment Adam. “It’s a pickle” is a nice way of putting it - most use R-rated terms
-Danilo