Forum

Over the last ten years, and more significantly the past five, the assessed value of our homes in the City has risen dramatically.  Increased residential assessed value means, quite simply, higher real estate taxes.

Real estate taxes in the City of Fairfax are applied to all property owners under three requirements:

1. Assessments are set at 100% of market value as required by the General Assembly.
2. The tax rate per $100 dollars of assessed value must be consistently applied, whether residential or commercial.
3. Annually, the City Council sets the tax rate per $100 of assessed value.

In the City, real estate taxes are weighted toward the residential properties.  Historically, this relationship has been roughly 55% residential, 45% commercial.  Over the past few years, we have seen a noticeable shift of the burden toward the residential side.  In 2005, residents paid 69% of total real estate taxes and business paid 31%.  What has caused this shift? 

1. The assessed value of all residences has increased by over $2 Billion in the last 10 years, while the assessed value of all business is only up $600 Million.
2. A contribution of only 31% generated from commercial real estate taxes, clearly shows that business investment has stalled and continues to lag residential growth.

Revitalization of our commercial sector is essential.  Sensible re-vitalization and re-development of our business boulevard will impact our economy, our quality of life and how we are perceived as a City.  Commercial investment provides jobs, goods and services and makes our City more desirable in terms of new restaurants, better shopping venues and attractive businesses.