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City staff outline commercial/industrial transportation tax option; recommend waiting for qualifying projects
Summary
Staff briefed council on a state-authorized commercial/industrial tax for transportation (maximum 12.5¢ per $100 assessed value) and estimated about $2.5 million in annual revenue at current assessments; staff recommended considering the tax in the future once qualifying transportation projects are identified.
City staff presented background on a state-enabled option for local jurisdictions to impose an additional real-property tax on commercial and industrial properties to fund transportation projects. The ordinance language and legislation were included in the agenda packet.
Staff noted the statutory maximum rate is $0.125 per $100 of assessed value and estimated that at current assessments the tax could generate roughly $2,500,000 annually; they also provided sample per-property average increases ($2,800 for an average commercial property and $3,400 for an average industrial property, based on current assessments). Staff said they currently have no qualifying projects that would uniquely use this revenue and recommended considering the tax only after larger projects are identified.
Council discussed the economic impacts on businesses and the timing of any tax decision; several members said they wanted to hold the discussion until the city has a clear project list that would leverage these funds alongside state and federal grants. Staff said other Northern Virginia jurisdictions currently using the authority include Arlington County, Fairfax County and the City of Fairfax.
