Amendment to County Code would allow tax to fund transportation projects
Arlington, VA, November 28, 2007 – The Arlington County Board last night voted to amend the Arlington County Code to allow a future additional real estate tax on commercial and industrial properties. Any revenue generated by such a tax would be used exclusively to fund transportation projects in Arlington.
“Improving transportation infrastructure is one of our region’s highest priorities,” said Arlington County Board Chairman Paul Ferguson. “This mechanism gives us the option of tapping a new revenue stream in the future to fund badly needed transportation improvements that will keep our County livable.”
Additional Board action, more public input necessary
Today’s Board action — adoption of an amendment to Chapter 20 of the Arlington County Code — neither imposes the transportation tax nor specifies the rate of such a tax, should the Board adopt one. The Board’s action only makes it possible for the Board to implement a transportation tax at a later time, following an opportunity for public comment.
Public input
The Board adopted an ordinance change after holding a public hearing tonight on the issue. Before the public hearing, County staff met with a number of parties that would be directly affected by the ordinance change, including:
- Arlington Chamber of Commerce
- Arlington Economic Development Commission
- Arlington Fiscal Affairs Advisory Commission
- Arlington Transportation Commission
- Arlington Travel & Tourism Commission
- Crystal City Business Improvement District Board
- Rosslyn Business Improvement District Board
Background
The Virginia General Assembly enacted HB 3202 during the 2007 session. The legislation authorizes additional revenue for transportation projects and services, to include local funding in the Northern Virginia and the Hampton Roads areas, regional transportation authority funding, and statewide revenue. The largest potential source of new local transportation funding authorized by HB 3202 is an additional real estate tax on commercial and industrial properties.
Under the law, localities embraced by the Northern Virginia Transportation Authority (NVTA) are allowed to adopt a tax on all real property used for or zoned to permit commercial or industrial uses. Multi-family dwellings such as apartments, condominiums and cooperatives are excluded from the additional tax. Arlington is a member of the NVTA.
The purpose of the tax is to provide dedicated and sustainable funding to meet current and future transportation needs in the County. Projects that could be funded with the commercial real estate tax include:
- Rosslyn Metro Access Improvements
- Arlington Complete Streets Program
- Crystal-City Potomac Yard Transitway
- Ballston Metro West Entrance
Background
The ordinance change allows the County Board at a future date to impose an ad valorem property tax (a tax based on the assessed value of real estate) on commercial and industrial properties located within the County at a rate no greater than $0.25 per $100 of assessed valuation. If the Board decides to levy an additional real estate tax rate on commercial and industrial properties the revenue generated would be approximately $1.5 million for each $0.01 per $100 of assessed value based on the tax year 2007 land book for the affected properties.
The tax would involve only commercial properties and excludes residential properties such as single-family homes, townhouses, multi-family properties and condominiums. By law, the additional revenue generated in the by the tax must be used for transportation purposes in Arlington. The additional tax levy would be established, assessed and collected through the normal County tax billing and collection processes.
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Arlington, Va., is a world-class urban community that was originally part of the “10-mile square” parcel of land surveyed in 1791 to be the Nation’s Capital. It is the geographically smallest self-governing county in the United States, occupying slightly less than 26 square miles. Known for its urban villages and transit-oriented development, Arlington maintains a rich variety of stable neighborhoods, quality schools and enlightened land use. In 2002, the county was the first recipient of the Environmental Protection Agency’s highest award for “Smart Growth.” Home to some of the most influential organizations in the world – including the Pentagon – Arlington stands out as one of America’s preeminent places to live, visit and do business.
