Fiscal Year 2005 Adopted Budget

Revenue Summary

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CALENDAR YEAR 2004 TAX RATES IN THE WASHINGTON METROPOLITAN AREA
Arlington City of City of City of Fairfax Loudoun Pr. William City of
Tax County Alexandria Falls Church Fairfax County County County Manassas
Local Real Estate Tax Rate $0.958 $0.995 $1.08 $0.90 $1.13 $1.1075 $1.09 $1.15
Special Taxing Districts $.048 - $.375 - - - $0.02-$0.20 $0.14-$0.30 $0.004-$0.28 -
State Tax Rate - - - - - - - -
Personal Property              
Vehicle Rate $4.40 $4.75 $4.71 $3.29 $4.57 $4.20 $3.70 $3.05
Effective Vehicle Rate $3.96 $4.75 $4.71 $3.29 $4.57 N/A $3.70 $3.05
Business Rate $4.40 $4.50 $4.71 $3.29 $4.57 $4.20 $3.70 $3.05
Newly Registered Vehicle Tax (state) 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Local Vehicle Registration-Decal $24 $25 $25 $25 $25 $25 $24 $25
Car Rental Tax              
State 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Local 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 1.0% 4.0%
Gasoline Tax              
Per Gallon $0.175 $0.175 $0.175 $0.175 $0.175 $0.175 $0.175 $0.175
Retail Sales 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Sales Tax              
State (see note) 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%
Local 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Meals Tax 4.0% 3.0% 4.0% 2.0% - - - 4.0%
Transient Occupancy Tax 5.25% 5.5% plus $1.00 per night/room 5.00% 4.00% 4.00% 5.00% 5.00% 5.00%
BPOL                
Business Services $0.35 $0.35 $0.36 $0.27 $0.19 $0.17 $0.21 $0.22
Professionals $0.36 $0.58 $0.52 $0.40 $0.31 $0.33 $0.33 $0.33
Contractors $0.16 $0.16 $0.16 $0.16 $0.11 $0.13 $0.13 $0.10
Retail $0.20 $0.20 $0.19 $0.20 $0.17 $0.17 $0.17 $0.10
Repair Services $0.35 $0.35 $0.36 $0.27 $0.19 $0.16 $0.21 $0.22
Recordation Tax                
State (see note) $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15
Local (see note) $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05
Grantor's Tax                
State $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50
Local $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50
Bank Stock Tax                
State $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20
Local $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80
Cigarette Tax, per 20 Cigarettes              
State (see note) $0.025 $0.025 $0.025 $0.025 $0.025 $0.025 $0.025 $0.025
Local $0.05 $0.50 $0.50 $0.50 $0.05 - - $0.50
Utility Tax on Commercial Users              
Electricity $1.15 plus $0.004989/kWh $0.97 plus $0.004610/kWh $0.92 plus $0.004807/kWh $1.72 plus $0.010112/kWh max=$75.00 $1.15 plus $0.00594/kWh max=$1,000 $0.005393/kWh max=$72.00 $2.29 plus $0.013487/kWh max=$100.00 City owned
Telephone - Land Line - 25% /1st $150 20%,1st $50 15% /1st $500 22.2%/1st$1600 8% /1st $900 20% /1st $500 20% of first $500
Cellular - 10% to max $3.00/month 10% to max $3.00/month 9%/1st $30 10% to max $3.00/month
Gas $0.845 plus $0.05017/CCF $1.42 plus $0.050213/CCF $0.676 plus $0.04098/CCF $1.27 plus $0.05295/CCF max=$75.00 $0.845 plus $0.04794/CCF max=$300 $0.676 per mo. + $0.0304/CCF max=$72.00 $3.35 plus $0.085/CCF max=$100.00 $4.65 plus $.06/CCF max$100
Water - 15% /1st $150 8% 15% /1st $500 - - - City owned
Utility Tax on Residential Users
Electricity - $1.12 plus $0.12075/kWh max=$2.40 $0.70 plus $0.007535/kWh max=$5.00 $1.05 plus $0.01136/kWh max=$2.25 $0.56 plus $0.00605/kWh max=$4.00 $0.006804/kWh max=$2.70 $1.40 plus $0.01509/kWh max=$3.00 City owned
Telephone - Land Line - 25% on local 10% /1st $50 15% /1st $15 22.2%/1st $50 9% /1st $30 20% /1st $15 20% of first $15
Cellular - 10% to max $3.00/month 10% to max $3.00/month 9%/1st $30 10% to max $3.00/month 10% to max $3.00/month
Gas - $1.28 plus $0.124444/CCF max=$2.40 $0.70 plus $0.0039/CCF max=$5.00 $1.05 plus $0.05709/CCF max=$2.25 $0.56 plus $0.05259/CCF max=$4.00 $0.63 per mo. + $0.06485/CCF max=$2.70 $1.60 plus $0.06/CCF max=$3.00 $2.45 plus $.027/CCF max$3
Water - 15% /1st $15 10% /1st $50 15% /1st $15 - - - -
Estate Tax $0.33 - - - - - - -
E-911 Tax, Per Line, Per Month
State - - - - - - - -
Local $3.00 $0.50 $1.00 $0.88 $2.50 $2.00 $1.75 $1.75
Wireless E-911 Tax - - - - - - - -
NOTES
REAL ESTATE TAX RATE: Virginia jurisdictions tax on 100% of each $100 of assessed valuation each year. In Arlington, there are two special taxing districts that add to the base rate for funding sanitary sewer lines. There is also one special taxing district in the Rosslyn business district to fund additional services and programs within the district's boundaries. In Alexandria one cent ($0.01) of the real estate tax rate goes to fund the acquisition of open space. In Fairfax, Prince William and Loudoun counties, special taxing districts add to the base rate for funding items which may include: community centers, leaf collection, gypsy moth control, fire and rescue, and roads. Two of Loudoun County's special tax districts are County-wide (for gypsy moth & fire and rescue) which adds $0.0768 to the base tax rate (fire and rescue does not apply to Town of Quantico).
EFFECTIVE VEHICLE PERSONAL PROPERTY TAX RATE COMMERCIAL AND CONSUMER: Vehicles in Arlington County and Loudoun County are assessed using the average loan value from the N.A.D.A. Used Car Guide. Other neighboring jurisdictions use the average trade-in value. This results in a lower assessment (about 10% less ) for vehicles or an effective rate in Arlington of approximately $3.96 and $3.78 in Loudoun County. All vehicles including those of businesses are included in this category. In Alexandria the vehicle rate for the physically disabled is $3.55.
BUSINESS TANGIBLE PERSONAL PROPERTY: The City of Alexandria and Counties of Loudoun and Prince William charge rates of $4.50, $2.75 and $2.00 respectively for machinery and tools. In addition, Prince William County has other rates: the tax rate for Programmable Computer Equipment and Peripherals rate is $1.25; Research and Development rate is $1.00.
LOCAL VEHICLE REGISTRATION: Effective for tax years beginning July 2000, Arlington County charges an annual decal fee of $24 for all applicable motor vehicles.
CAR RENTAL: Effective July 1, 1992, the add-on portion of the Virginia car rental tax was increased from 2.5% to 4.0% of gross proceeds.
SALES TAX: On June 3, 2004 the Governor sign HB 5018 which is the revenue budget for the FY 2004 - FY 2006 biennium. As part of this bill, the sales tax was increased 1/2 percent from 3.5% to 4.0%. One-half of this rate change will go to the Schools in the various jurisdictions. This new state sales tax rate will not become effective until September 1, 2004.
MEALS TAX: The meals tax is paid in addition to sales tax. In 1991, Arlington instituted a 4% restaurant meals tax on most prepared foods offered for sale.
TRANSIENT OCCUPANCY TAX: This tax is paid in addition to sales tax. In 1991, Arlington County approved a 0.25% increase on the total room rate, dedicating proceeds to the Travel and Tourism Promotion Fund. In addition to the tax, Alexandria charges $1.00/room/day. Loudoun County charges 5.0% of which 2.0% goes to the General Fund and 3.0% goes to the TOT Fund.
BPOL TAX: For CY 1997 Virginia jurisdictions changed the BPOL thresholds to comply with state law so that businesses with gross receipts under $10,000 would not pay BPOL tax, and businesses with gross receipts between $10,000 and $100,000 would pay a flat fee of $50 or less. Beginning CY 2001, the date for filing changes from January 31 to March 1. Effective January 1, 2001, the BPOL on electric and natural gas is eliminated and replaced with a consumption tax.
RECORDATION TAX: The tax rate is per $100. In Virginia, localities can impose a tax of up to one third of the state rate. The state adopted an increase to the state recordation tax for the FY 2004 - FY 2006 biennium. The state rate will increase from $0.15 per $100 of recorded value to $0.25 effective September 1, 2004. Arlington's rate will automatically increase to $0.0833 (1/3 of the state rate) when the state's rate becomes effective.
GRANTOR'S TAX: This is a tax on the grantor and is imposed at a rate of $1.00 per $1,000. In Virginia, both the state and the locality receive 50% of the tax.
BANK STOCK TAX: This is a franchise tax on the net capital gains of banks and trust companies. In Virginia, the rate is $1.00 per $100 of taxable value as of January 1. In Northern Virginia, localities receive 80% of this collection and the State receives 20%.
CIGARETTE TAX: On June 3, 2004 the Governor signed HB 5018 which is the revenue budget for the FY 2004 - FY 2006 biennium. As part of this bill, the state increased the state imposed cigarette tax from $0.025 to $0.20 effective September 1, 2004; and will increase to $0.30 effective July 1, 2005.
UTILITIES TAX: Arlington County's and City of Alexandria's commercial users pay a 4.5% tax for interruptible gas service. Fairfax County's commercial interruptible gas users pay a 4.5% tax on the first $6,667 of monthly bill.
ESTATE TAX: In Arlington County, the estate tax is added to the existing State Estate Tax, and is charged for the processing of estates by the Circuit Court Clerk's Office.
E 911 TAX: This tax is charged on applicable telephone lines at a monthly rate. Proceeds in Virginia can only be used for the operation and maintenance of the E-911 system, including the cost of dispatchers. Effective for FY 2005, Arlington's rate increased from $1.75 to $3.00 with the incremental increase going to fund the debt service and equipment upgrades in the new Emergency Operations Center. The state of Virginia assesses an E-911 tax on a wireless phones of $0.75/phone.
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