Taxation by Misrepresentation
Around June 28 Fairfax County homeowners will get their real estate tax bill, which is due July 28. The typical homeowner�s real estate tax bill will increase by $484 or 6.8%, from $7,159 to $7,643.
Around Sept. 5, Fairfax County car owners will get their personal property tax bill, which is due Oct. 5. The typical household�s personal property tax will increase by $151 or 36%, from $420 to $571.
Combining real estate and property tax increases, the typical household will have a $634 or 8.4% tax increase. This is the largest increase since Gerry Connolly�s 9.7% increase in 2006, at the end of the housing bubble. (When he was county chairman, Congressman Connolly increased taxes 15% in 2003, which makes him the record holder for the largest tax increase since 1982.)
However, if you read county chairman Jeff McKay�s April 26, 2022, newsletter about next year�s budget, you�d think your taxes are going down.
First, he says that the supervisors lowered the tax rate 3 cents, from $1.14 to $1.11. In fact, the supervisors increased the tax rate, since $1.11 is 7 cents higher than the $1.04 rate which would have prevented a tax increase due to higher assessments.
Virginia Code Section 58.1-3321 requires supervisors to compare the new rate of $1.11 not to the current $1.14 rate but to a lower rate that would offset the increase in assessments. For homeowners that �lowered� rate is $1.04. Chairman McKay ignores the Virginia Code.
Also, Chairman McKay left out the stormwater tax, which is also based on assessments. The stormwater rate is 3 � cents, so the total real estate tax rate is $1.14 � cents, and not $1.11.
Second, Chairman McKay says, �The Board also agreed to a 15% reduction in the assessment of personal property (car tax), �� However, used car values have increased so much that even with this 15% �reduction�, the typical household�s car tax bill will increase 36%.
Third, Chairman McKay cites �expanded tax relief for seniors,� which will increase the number of seniors eligible for tax relief by 2,000. There are about 160,000 seniors in the county, so the expanded tax relief benefits only about 1% of seniors.
Under compensation, Chairman McKay says all county employees are getting 4% raises. However, the supervisors� budget package states that there will be �� average pay increases of 7.86 percent for uniformed public safety employees and 6.16 percent for non-uniformed employees ��
All told, county revenue increases next year total $246 million. The total cost of raises and rate hikes for benefits for the county and schools (school employees are also getting 6% raises) is $252 million.� So, the quarter-of-a-billion-dollar tax hike is all for raises and benefits.
Chairman McKay�s newsletter does not mention this.� Instead, he says, �In total, this budget provides $199.4 million in tax relief.
This is taxation by misrepresentation.
What he means is that the supervisors were thinking of raising taxes and other revenues by $445 million, but instead they only raised taxes and revenues by $246 million.
Suppose Chairman McKay had said that the supervisors effectively raised the real estate tax rate 7 cents rather than decreasing it 3 cents; that the rate is actually $1.14, not $1.11; that the car tax is going up 36%, not down 15%, that county employees are getting raises of 6% and 7%, not 4%, and that county revenues are increasing $246 million to pay for the raises and not going down by $199 million.
Would that jeopardize Chairman McKay�s reelection next year?
