Several weeks ago I was shocked when I opened my Fairfax County 2008 estimated real estate tax bill. For months, I've read about the U.S. real estate crisis - home values down, foreclosures up, and more bad news coming. I've read numerous articles that talk about the depreciation in Northern Virginia home values.Having read these articles, I fully expected my property value to be affected by this downturn. That's why I was astonished to see my property assessment actually appreciate by 14%! I have discussed this with several of my neighbors here in Great Falls and they, too, experienced a comparable increase in their assessments from Fairfax County. In all cases, the entire increase was in land value.
Shortly after I received my assessment, I read that the County was reevaluating its 2008 tax estimates -- but only after thousands of complaints were lodged by outraged homeowners. Then, a couple of days ago, I received a new estimate from the County. My property still had appreciated by 14%, but this time the appreciation was divided equally between the land and the house. Mind you, the size of my land parcel has not somehow magically increased or decreased since I received the original real estate tax assessment. Nor have I remodeled or added an addition to my house. My neighbors also received their revised tax estimations with approximately the same changes.
All this has left me outraged -- not by the increase in assessed value itself, but by the reasons given for the increase. I mean, if our County is suffering monetary shortfalls, then the least Gerry Connolly could do is be truthful with us. If the County truly needs to raise more money, then it should publicly change the calculations it uses in determining real estate taxes. Yes...this would be "raising our taxes." But at least it would be a truthful, open and honest approach to dealing with the County's problems -- not Gerry Connolly's cowardly smoke and mirrors.
As it is, instead of honestly and openly raising taxes, the County has used an increase in property values as a backdoor way to achieve the same result and hope that people wouldn't notice. But this doesn't even make sense - one zip code with increases of 14% surrounded by communities with varying degrees of depreciation? Perhaps that is not unlawful, but it is certainly dishonest.
By the way, I am not writing this as someone who is a longtime Gerry Connolly hater. In fact, I have previously voted for him. Unfortunately, this June 10th, I will not have the opportunity to express my displeasure with Gerry Connolly at the ballot box as I live in the 10th congressional district. However, if the opportunity should ever present itself again -- whether Gerry Connolly is running for chairman of the board or dogcatcher -- you can be sure that I will not be voting for him.
We unnamed Great Falls residents was to make sure Connolly doesn't win the primary because we don't want him to hurt our investments in oil, gas, and coal.
Connolly would vote in Congress take away the tax breaks for the oil companies that hurt you little people but help Exxon line OUR pockets with stock dividends from record profits.
Connolly would vote to take away the special tax breaks on our capital gains that allow us to escape paying taxes on our profitable investments.
We would rather have Leslie Byrne because she has proven to be an ineffective legislator. Besides, she has a cozy relationship with a Dominion Energy lobbyist who contributed to her campaign and sponsored her big fundraiser at the JJ dinner. Byrne may talk a good game but she won't get anything done in Congress.
Connolly is a different story. He has a record of accomplishment and we don't want him getting elected to Congress and screwing up our tax breaks for the super-rich.
"Would you accept an offer from me to buy your house for [the dollar amount of assessment]?"
Invariably Harry Homeowner exclaims "No way! It's worth more than that!"
Case over, Harry loses.
Our State Constitution requires assessments to reflect fair market value as of January 1 each year. Because assessors rely on recorded deeds which frequently are recorded 3 to 6 months after the contract is signed, the assessments regularly trail the current sales prices both on the way up and the way down.
In Fairfax and across VA, r/e taxes are less than 1-2% of property value. VA's tax burden is consistently among the lowest among the 50 states.
Do we really want a road system that is equal to Arkansas or schools equal to Alabama or Mississippi? (Three of the few states where the tax burden is lower than Va.)
Our expenditures on schools tracks almost perfectly with the amount raised in real estate taxes across Virginia. Since education creates human capital which most closely correlates with income levels and not real estate values, I will admit that it makes a lot more since to fund local education with a local piggy back income tax, as several states already do, and not with a regressive tax, like the real estate tax.
But someone in Fairfax complaining that their real estate taxes are too high is either living on a very low fixed income (i.e. suffering from its regressive aspects) or needs a wider perspective and deeper insight.
a.) Connolly and the other Supervisors have nothing to do with this; the tax collection in the county is independent...the tax administrator is technically independent and so is the work of his staff.
b.) The County Announced long ago in early March (see Web links below) that this reevaluation would not result in any changes to the original value. The only change would be how the two numbers that make up an assessment would be divided. So of course there were no magical changes to his property.
In the future, if an RK reader, uncomfortable with blogging her or himself, can't do better than this, I think she or he should be sent to NLS.
Then again, I'm sure Frank Wolf has no chance of getting re-elected in your mind, either.
As to Frank Wolf, he's obviously the odds-on favorite, but he'd better watch out cuz Judy Feder is gaining on him fast!
Two more points: assessments do indeed reflect market prices, but only settled transactions, and so tax assessments lag anywhere between 6 and 18 months behind current market valuations. Also, there are, even in this notoriously down market, some neighborhoods which have actually had market price increases over the past year, and among these are some Alexandria areas, and, it would seem, some in Great Falls. If the aggrieved home owner goes to the County land records (or asks his Realtor to do so) to check comparable sales in his neighborhood and in nearby areas, he can discover if his assessment is reasonable and, if not, make a formal complaint to the Equalization Board.
Disclaimer: I have been a Realtor in NoVa since 1967.