On January 18, 2025, Arlington County, Virginia, released the calendar year 2025 proposed real property assessments to both commercial and residential property owners. The proposed 2025 values represent a 2.0% increase year over year, which is a slightly lower growth rate compared to 2.5% in 2024.
Both residential and commercial property values increased over 2024, at 3.7% and 0.1% growth, respectively. Existing office values experienced the sharpest decline in assessed value for the second year in a row, decreasing 11.1% in an attempt to reflect the ongoing struggles for the area’s office market. General commercial property values (non-office commercial properties) collectively increased by 2.6%. Benefitting from continued demand for new construction, the apartment sector values increased by 4.2%. Hotel/motel values represented the most significant inflation of any property type at a 22.0% increase, as the jurisdiction has sought to return to pre-pandemic assessment levels for these assets.
The county will be met with more tough decisions when developing the fiscal year (FY) 2026 budget this year, as the deteriorating office market in Arlington has continued to adversely impact revenues, while expense totals still climb. After increasing the real estate tax rate for the first time since FY 2020 last year, ongoing budgetary pressures could result in another increase to the tax rate for FY 2026, making an assessment review and appeal even more crucial. 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.
Notice of 2025 assessments were mailed to Arlington property owners on January 18, 2025. 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 listed below as soon as possible to prepare for the appeal deadline of April 15, 2025.
TECHNICAL INFORMATION CONTACTS:
Grant Steinhauser
Principal
Ryan
202.470.3105
grant.steinhauser@ryan.com
Libba McCraw
Manager
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.
- Sujet
- Grant R. Steinhauser