On January 12, 2024, the county of Arlington in Virginia released their calendar year 2024 proposed real property assessments to both commercial and residential property owners. The proposed 2024 values represent a 2.5% increase year over year, which is a slightly lower growth rate compared to the 3.7% in 2023. The majority of the tax base increase stems from new construction across the county as well as continued residential growth.
The percentage breakdown of property values increased over 2023 at a growth rate of 3.2% for residential and 1.6% for commercial. The existing office inventory experienced the sharpest decline in assessed value, decreasing 11% to reflect the staggering weaknesses in the office market. Commercial property values in all other industries (non-office commercial properties) also collectively decreased this year by 2.4%. In contrast, benefitting the most from new construction, the apartment sector values increased by nearly 9.5%. Hospitality values crept up 1.7%.
The county will be met with tough decisions when developing the fiscal year 2025 budget this year; the deteriorating office market in Arlington has been adversely impacting revenues, while expense totals continue to climb. This could result in the first increase to the base real estate tax rate since 2019, making an assessment review and appeal even more important. The county manager will present the proposed budget to the board in February, with the tax rate not being finalized until the end of April.
2024 assessment notices were mailed to property owners on January 12, 2024. The subject matter experts at Ryan are exploring creative strategies to assist our clients and minimize tax liability. We urge you to reach out to our local team members to prepare for the appeal deadline of April 15.
TECHNICAL INFORMATION CONTACTS:
Grant Steinhauser
Principal
Ryan
202.470.3105
grant.steinhauser@ryan.com
Shawn Eskow
Principal
Ryan
571.481.9427
shawn.eskow@ryan.com
Cutchin Powell
Principal
Ryan
202.470.3094
cutchin.powell@ryan.com
Libba McCraw
Senior Consultant
Ryan
703.746.0022
libba.mccraw@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.