Local taxes could go up again in Prince William County in the coming year under a proposed $1.48 billion budget proposed by acting-County Executive Elijah Johnson.
The budget – a $140 million increase over the current year – would be funded by rising residential tax bills, an increase in the fire levy and a new, countywide meals tax of 4%. If approved, it will pay for 4% county employee pay raises, a $61 million increase in local tax revenue to the county’s public schools and across-the-board increases for local public safety and social services agencies.
Johnson’s proposed real estate tax rate is $1.05 per $100 in assessed value, a 6-cent decrease over the current year. But because of an increase in assessments, which will average about 11%, the annual residential real estate tax bill will rise by an average of $233 under his proposal.
Johnson presented his proposed budget to the Prince William Board of County Supervisors at their Tuesday, Feb. 15, board meeting. Supervisors spent two hours deliberating and asking questions about the proposal before taking a series of votes to advertise the proposed $1.05 real estate tax rate and a 4% meals tax.
The board’s three Republicans made motions to lower the real estate tax rate to 98 cents per $100 in assessed value and to remove the meals tax from the budget entirely. Both proposals were introduced by Supervisor Yesli Vega, R-Coles, and killed on a 3-5 vote.
Democratic supervisors then made a motion to advertise Johnson’s proposed real estate tax rate and a 4% meals tax, both of which were approved on a 5-3, party-line vote.
The advertised tax rate is a “ceiling” on proposed tax rates that the board can consider. After advertising the tax rates, the board can choose to lower them before adopting the budget in April, but they cannot raise them.
The meals tax, if adopted, would be a first for the county. The tax is expected to generate a total of $24.5 million in revenue next year, with $14 million going to the Prince William County school division and $10.5 million to the county government. Several nearby localities – the City of Manassas, Town of Dumfries, Arlington County, Stafford County, the City of Fairfax and the City of Alexandria – already have meal taxes.
Democrats and Republicans on the board disagreed on the direction of the budget, with Democrats advocating for more spending and Republicans for less. Since taking a majority on the board in 2020, Democratic supervisors have pressed for increases in spending on schools, social services, public safety and public health initiatives.
“We have almost half a million people in Prince William County. We need a budget to actually reflect that,” Supervisor Margaret Franklin, D-Woodbridge, said during the discussion.
Chair Ann Wheeler, D-at-large, said in an emailed statement prior to the meeting she would back the plan for a 4% meals tax if it supports “needed programs and services,” including an employee pay increase.
“Staff has discussed the meals tax in the prior two budget seasons, and it has always been part of the five-year plan starting in [fiscal year 2023], which is the current budget. … If the meals tax supports needed programs and services, including an employee compensation increase, then I will support it,” Wheeler said.
Vega, Supervisor Jeanine Lawson, R-Brentsville, and Supervisor Pete Candland, R-Gainesville, all of whom voted against the proposed real estate tax rate and meals tax, pointed to rising inflation and high gas prices as reasons to further reduce the tax rate. The supervisors did not mention specific cuts to Johnson’s budget in connection with the reduced tax rate.
“If we were to adopt all this, then you’re tone deaf to what the average Prince William County resident is experiencing in their homes,” Lawson said.
Vega called the proposed budget “reckless,” pointing to the rising inflation “at the grocery store or while pumping gas.”
“The only way you reduce spending is by starving the beast. And that comes down to elected officials. When you have less to work with, you are going to make that go a long way,” Vega said.
County staff and the Prince William Board of County Supervisors have scheduled several budget work sessions and community input meetings in March and April. The board of county supervisors is expected to adopt the fiscal year 2023 budget on April 27.
