On February 5, the county of Loudoun released its tax year 2024 proposed real property assessments for data center property owners. The proposed 2024 values represent an approximate 25% increase year over year, a materially higher growth rate than compared to the 13% growth in 2023. The majority of this increase stems from an increase in the county’s opinion of value per megawatt. The newly released 2024 assessed values represent the second year that 58.1-3295.3 of the Virginia Code has been in effect, requiring Virginia localities to value computer equipment and peripherals on the cost approach. Implementation of 58.1-3295.3 across Virginia jurisdictions has been inconsistent with nearly all impacted localities interpreting the mandate differently.
The county will be met with tough decisions when developing its budget this year. This could result in the first increase to the base real estate tax rate in several years, making an assessment review and appeal even more important.
The local subject matter experts at Ryan are exploring creative strategies to assist our clients with minimizing tax liability. Just last year, our experts realized more than $1 billion in 2023 data center assessment reductions. We urge you to reach out to our local team with questions and to prepare for the upcoming June 3 appeal deadline.
TECHNICAL INFORMATION CONTACTS:
Grant Steinhauser
Principal
Ryan
703.746.0022
grant.steinhauser@ryan.com
Robert Fey
Senior Manager
Ryan
703.746.0022
robert.fey@ryan.com
Shawn Eskow
Principal
Ryan
571.481.9427
shawn.eskow@ryan.com
Cutchin Powell
Principal
Ryan
202.470.3094
cutchin.powell@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.