Prince William supervisors approve maximum tax rate

Prince William residents now have a maximum: The highest the fiscal 2011 real estate tax rate can be is $1.236 per $100 of assessed value.

That’s because supervisors Tuesday agreed on that rate to send to advertisement, and state law prohibits the final rate that’s adopted to surpass what’s advertised. The vote — unlike years past, when back-and-forth among board members about what rate to set led to delays in the voting process — was unanimous, 8-0, and followed the recommendations of the executive office.

“Based on all this,” said County Executive Melissa Peacor after detailing the uncertainties of collections from sales taxes and Business, Professional and Occupational License fees, which won’t be figured for weeks, “I am recommending to you to retain your flexibility and advertise a rate of $1.236.”

Should the board adopt this rate in April, the average residential tax bill will rise by $74, or 2.5 percent, according to county estimates. The average commercial tax bill rate, meanwhile, would drop by 15.8 percent.

The fiscal 2011 budget, as proposed by the county executive weeks ago, recommended a rate of $1.22, which would still increase the average residential tax bill by $61.

That $1.22 could still be the rate that’s ultimately set. But in addition to unknowns about the final total of BPOL and sales tax revenues, supervisors are trying to get a better handle on what the state’s doing in terms of its budget — and whether communities will be called upon to dip even deeper into local coffers for the next year.

“State budget cuts are uncertain,” Peacor said. “The state must find an extra $2 billion in cuts and we won’t know any decision [about impact to localities] until the General Assembly session is completed.”

Jumping from a tax rate of $1.22 to $1.23 means an additional $3.5 million in revenues for the county and $4.5 million for the schools, Peacor said.

Chairman Corey Stewart, R-at large, was quick to point that either rate gives homeowners a break in their bills from fiscal 2007, when assessments were still at record-breaking highs, and that surrounding jurisdictions — Loudoun, Fairfax, Alexandria — were potentially hiking rates by 10 percent or more.

“Even if we adopt this rate,” he said of the $1.236, “the average tax bills for fiscal 2011 will be $166 lower than they were in fiscal year ’07.”

Staff writer Cheryl Chumley can be reached at 703-670-1907.