Arlington Tax Rate Increases Outpace Inflation Rate

Arlington County Board Meeting, December 14, 2024.

At a Q&A session hosted by Arlington County Civic Federation on December 10, County Manager Mark Schwartz projected an increase in tax revenue next year of 2-2.5 percent based on an “11-15 percent drop in commercial values this year, [which will be ] be repeated year over year for the next 3 or 4 years at least.” That coupled with increases in staff and salaries of 3-4 percent leaves a major spending gap which must be funded by another tax rate increase “unless County Board [is] willing to cut county programs in a meaningful way.”

Schwartz added: “The tax burden is a little bit higher than the rate of inflation but not that much by 2 percent over the past 5 or 6 years, and I think there’s been a conversation in the community that we simply tax our way out of these situations.”

A more meaningful statistic is the difference between the 6 year average annual effective real estate tax increase and the 6 year average annual rate of inflation. At 4.8% Arlington’s 6 year average annual effective real estate tax increase (p. 121) is 30 percent higher than the 3.7% 6 year average annual rate of inflation. That’s a lot considering 3 years of high inflation. It’s certainly not something to boast about.

As for the community that wants to tax our way out of the funding gap, Schwartz must be referring to the gimme groups that seek handouts from County Board every budget cycle. It certainly isn’t the average tax gouged residential taxpayer who has to pony up every year. Nor is it the average apartment dweller whose taxes are extracted from their astronomical rent.