Fairfax County Tax Hikes to Continue

Since the mid-1980s, Fairfax County Board of Supervisors have increased real estate taxes at a rate three times higher than the household income. This trend will continue this year.

The average residential assessment increased this year by 6.2%. This means that the real estate tax for the average homeowner will rise 6.2% unless supervisors reduce the property tax rate.

The Board of Supervisors does not consider a 6.2% increase in tax to be enough. The board, under Chairman Jeff McKay’s leadership, instead of reducing tax rates to offset the assessment increases, actually adds 1 1/2 cents! The average homeowner will now pay 7.5% more in taxes – the highest increase in real estate taxes for ten years.

Taxes for the average homeowner will increase from $8 659 to $9 312 – a $653 rise.

McKay proposes a new meal tax in place of the rate increase of 1 1/2 cents. Even with the meals taxes, real estate taxes would still rise 6.2% on average due to increased assessments. Businesses pay already about 15 taxes. The meals tax for restaurants would bring the total to 16 taxes.

After the budget hearings, which will be held in the Government Center from Tuesday to Thursday, April 22-24.

Raising real estate taxes, pensions and medical insurance are the main drivers. The Board of Supervisors wants $300 million in additional revenue per year to provide 4% increases to 40,000 school and county employees. This is more than the inflation rate of 2.5%.

Pensions are also expensive. Pensions for non-uniformed workers are funded by the county at 34% of their salary. Most private-sector workers only have 401K plans, to which their employers contribute 6% of their salary.

How much do Fairfax County’s soaring property taxes cost?

The SAT score dropped by 40 points between 2019 and 2024 while funding for schools increased by $600 millions;
U.S. News and World Report has lowered the ranking of Thomas Jefferson High School for Science and Technology from 1 ^st down to 14 ^st.
A police force with 249 vacancies as of 12/31/23, (a vacancy rate of 16%) despite a starting salary of $59,000, an average salary $99,000 and a pension to which the county contributed 58%;
Housing that is unaffordable. Seniors are being forced to leave. College graduates can’t afford to live here. The private sector must build housing, as subsidised housing cannot meet the demand.
Slowly approving businesses
Since FY2000, there has been an increase of 304 staff and a 247% in funding for Public Assistance and Employee Services;
A 23,000 increase in SNAP (food Stamp) recipients and 59,000 increase in Medicaid beneficiaries since FY2020.
Fairfax County is the 19 ^th county with a population over one million. It ranks next to Chicago in terms of domestic out-migration. Fairfax County’s net domestic migration in 2024 was a loss 8,000, while its net international migration grew by 16,000
IRS data shows that since 2000, there has been a loss in income of $15 billion and 200,000 taxpayers.
According to areadevelopment.com, the Washington, D.C., metro area is ranked 263 ^rd for economic performance out of 411 U.S. metro areas. The Capital Area Economic Forum was held at Vienna’s Westwood Country Club on December 4. The D.C. metro region is falling behind due to its inability to afford it, says the urgent message.

The county’s $300m budget deficit this year is primarily due to the four percent average pay raises, compared with inflation of 2.5% and the cost of medical and pension insurance.

The FCTA has made the following recommendations to make Fairfax County more affordable and to help the D.C. metro area be a leader in the U.S.

The real estate tax rate could be limited to the growth rate of household income, which would result in lower raises but still cover $58 million towards county pensions and school medical insurance rates.
Operating quality schools in a county that is business-friendly, where incomes of households increase faster than the inflation rate to fund raises above the inflation rate.
Instead of two salary increases a year (i.e. a Cost of Living Adjustment plus a Step Increase), streamline the salary increases so that they are based on performance, as is done in the private sector. Drop the COLA.
Auditing school and county programs, and their staffing.