Loudoun supervisors adopt FY2027 budget guidance, direct cigarette‑tax revenue to housing and allow option to lower vehicle tax

The Loudoun County Board of Supervisors voted on Jan. 6 to direct the county administrator to prepare the FY2027 proposed budget under guidance that uses a 9% county operating growth rate and an 8% growth rate for Loudoun County Public Schools, keeps the advertised real‑property rate at 80.5¢ per $100 of assessed value and sets a general personal property rate of $4.15 per $100. The board also adopted language directing that cigarette‑tax revenue be dedicated to the county housing fund for down‑payment and closing‑cost assistance and accepted a friendly amendment allowing staff to consider a reduction of the vehicle tax to $3.00 per $100 in tax year 2027.

Finance Chair Supervisor Briskman, who moved the recommendation from the Finance, Government, Operations and Economic Development Committee, said the committee adopted a growth‑rate approach to constrain year‑over‑year spending and to set aside “excess” revenue principally for one‑time capital investments. "We are working our way toward a slower growth rate and we are looking at a similar scenario for the school system," Briskman said, adding that the committee planned to allocate 80% of any excess to one‑time capital needs and 20% to housing. The board approved the amended guidance after debate (vote recorded by the clerk as carrying with the required majority).

Supporters framed the guidance as a compromise that preserves capacity for the capital improvement program while providing targeted housing investment. "That intent is to have the cigarette tax go directly to housing assistance for down payments and closing‑costs," Briskman said, describing an additional estimated $3.6 million in one‑time housing funding tied to the guidance.

Opponents cautioned that the board was starting the budget at a high advertised rate and argued for beginning budget guidance at a lower baseline so the board would more easily be able to add necessary items later. Vice Chair Turner said he preferred starting with a lower property‑tax baseline and then adding items, noting he was uncomfortable with aspects of the current guidance construction.

Supervisor Tacrone pressed for more direct taxpayer relief through vehicle‑tax reductions. After the chair accepted a friendly amendment, the vehicle tax guidance includes options to decrease the rate to $3.00 per $100 of assessed value for tax year 2027; proponents said the county’s data‑center revenue creates room for modest, targeted tax relief. "I would like to see this rate further reduced in tax year 2027," Tacrone said.

County staff told the board the vehicle‑tax change would reduce county revenue estimates and that the growth‑rate framing would be applied after that change when calculating any excess revenue available for the CIP and housing allocations. The guidance directs the county administrator to prepare the proposed FY2027 budget consistent with the board’s direction; the budget process continues through committee review and final action in the spring.

Next step: staff will prepare the FY2027 proposed budget consistent with the board’s guidance for review in Finance Committee and later public hearings.