FINANCE DEPARTMENT PRINCE WILLIAM COUNTY, VIRGINIA · Finance Department Real Estate Assessments Office Organization Chart as of July 1, 2002 Director of Finance Christopher E. Martino,

REAL ESTATE ASSESSMENTS OFFICE FINANCE DEPARTMENT

PRINCE WILLIAM COUNTY, VIRGINIA

An Equal Opportunity Employer

Craig S. Gerhart

County Executive

November 15, 2002

TO: Board of County Supervisors FROM: Christopher E. Martino Finance Director THRU: Craig S. Gerhart County Executive RE: Real Estate Assessments Annual Report We have completed our annual report on real property and related real property activity in Prince William County for Fiscal Year 2002, or tax year 2001, and some tax year 2002 when available. As you have already heard in previous presentations and correspondence regarding real property, this report documents the very active and increasing value of the real estate market. Should you have any questions regarding this information, please call Mr. Martino at 703-792-6700. attachment

COUNTY OF PRINCE WILLIAM BOARD OF COUNTY SUPERVISORSOFFICE OF EXECUTIVE MANAGEMENT Sean T. Connaughton, Chairman 1 County Complex Court, Prince William, Virginia 22192-9201 Ruth T. Griggs, Vice Chairman (703) 792-6600 Metro 631-1703 FAX: (703) 792-7484 Hilda M. Barg Maureen S. Caddigan Mary K. Hill John D. Jenkins L. Ben Thompson Edgar S. Wilbourn, III

Real Estate Assessments Office

Finance Department

Prince William County, Virginia

BOARD OF COUNTY SUPERVISORS

Sean T. Connaughton Chairman at-large

L. Ben Thompson Brentsville District

Mary K. Hill Coles District

Maureen S. Caddigan

Dumfries District

Ruth T. Griggs Occoquan District

Vice Chariman

John D. Jenkins Neabsco District

Edgar S. Wilbourn, III

Gainesville District

Hilda M. Barg Woodbridge District

COUNTY EXECUTIVE

Craig S. Gerhart

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Finance Department Real Estate Assessments Office Organization Chart as of July 1, 2002

Director of Finance Christopher E. Martino, CPA

Real Estate Assessments Division Chief Allison Lindner

Secretary Diane Honeycutt

Assessments Coordinator Susan Schager, CAE

Assessment Support Supervisor Laura E. Morrison, CPFO

Appraiser II Supervising Ken Baxter

Appraiser II Supervising

John E. Malone, RES


Kerem Oner, CAE


Vacant

Account Clerk II Delories Goodman

GIS Analyst Debra Watson-Grady

Account Clerk III Pam Morehead

Title Clerk LaPointe Crismond

Account Clerk II Theresa Harris

Financial Systems Analyst I (OIT)

Janet Barrett

Data Entry Clerk Barbara Hill

Title Clerk Vacant

Appraiser I Wesley Riggins

Appraiser I Bridget Affeldt

Appraiser Trainee Pam Stepanick

Appraiser Trainee Petra Svenhager

Appraiser Trainee Jessika Kontur

Appraiser I Charlie Tolbert

Appraiser Trainee Alvaro Delgado

Appraiser I Mildred Norris

Appraiser I Susan Spicer

Appraiser I Victor Molina

Appraiser I Vacant

Appraiser I Mick Majdi

Appraiser I Linda Morey

Appraiser Trainee Tammy Palowitch

Assistant Director of Finance Steve Ferlotti

Appraiser Trainee Ken Redding

Appraiser Trainee Michelle Turner

Real Estate Assessments Office 2002 Annual Report

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TABLE OF CONTENTS INTRODUCTION...................................................................................................................................................................1

FUNCTIONS OF THE REAL ESTATE ASSESSMENT OFFICE....................................................................................2 MAINTAINING PROPERTY RECORDS......................................................................................................................................2 REASSESSING EXISTING PROPERTIES ....................................................................................................................................3

Collection of Data ..........................................................................................................................................................4 Analysis of Data .............................................................................................................................................................5 Application of Results.....................................................................................................................................................5 Performance Measurement.............................................................................................................................................6

ASSESSING NEW CONSTRUCTION..........................................................................................................................................7 FACILITATING ASSESSMENT NOTIFICATION AND APPEAL......................................................................................................8

Assessment Notification ..................................................................................................................................................8 Appeal Procedures .........................................................................................................................................................9 Appeal Adjustments ........................................................................................................................................................9

ADMINISTERING REAL ESTATE TAX RELIEF PROGRAMS.....................................................................................................10 Tax Relief for the Elderly and Disabled .......................................................................................................................10 Tax Relief Based on Use Value Assessment..................................................................................................................12 Partial Tax Exemption for Rehabilitated Real Estate ..................................................................................................13

PROVIDING CUSTOMER SERVICE ........................................................................................................................................14 Walk-in Customers .......................................................................................................................................................14 Telephone Requests From Real Estate Professionals...................................................................................................14 Telephone Requests From Citizens and Public Agencies .............................................................................................14 Internet Access..............................................................................................................................................................15

REAL ESTATE VALUES....................................................................................................................................................16 LANDBOOK VALUES: GROWTH AND APPRECIATION ...........................................................................................................17 RESIDENTIAL ......................................................................................................................................................................18 APARTMENTS .....................................................................................................................................................................21 COMMERCIAL AND INDUSTRIAL..........................................................................................................................................22

Locally-Valued Properties............................................................................................................................................22 State-Valued Public Service Properties........................................................................................................................23

UNDEVELOPED LAND .........................................................................................................................................................24 SUPPLEMENTAL ASSESSMENTS...........................................................................................................................................25 TAX-EXEMPT PROPERTIES..................................................................................................................................................26

STATISTICAL APPENDIX ..................................................................................................................................................1 TABLE 1: HISTORY OF PROPERTY RECORD MAINTENANCE ACTIVITY ..................................................................................3 TABLE 2: HISTORY OF TAX RELIEF FOR THE ELDERLY AND DISABLED .................................................................................3 TABLE 3: HISTORY OF APPEALS ACTIVITY............................................................................................................................3 TABLE 4: HISTORY OF ADJUSTMENTS...................................................................................................................................3 TABLE 5: USE VALUE ASSESSMENT SUMMARY....................................................................................................................4 TABLE 7: ASSESSED VALUES AND ESTIMATED MARKET VALUES.........................................................................................6 TABLE 8: HISTORY OF THE REAL ESTATE TAX BASE* ..........................................................................................................8 TABLE 9: PUBLIC SERVICE AND COMMERCIAL/INDUSTRIAL ASSESSMENTS..........................................................................9 TABLE 10: ASSESSMENT PERFORMANCE STATISTICS............................................................................................................9 TABLE 10: ASSESSMENT PERFORMANCE STATISTICS..........................................................................................................10 TABLE 11A: GROWTH AND APPRECIATION.........................................................................................................................11 TABLE 11B: HISTORY OF APPRECIATION RATES.................................................................................................................12 TABLE 11C: HISTORY OF GROWTH RATES..........................................................................................................................12 TABLE 11D: HISTORY OF RESIDENTIAL APPRECIATION AND INFLATION .............................................................................13 TABLE 12: TOP FIFTY REAL ESTATE TAXPAYERS—FY2002..............................................................................................14 TABLE 13: TAX RATES .......................................................................................................................................................15

ADDENDA ..............................................................................................................................................................................1 ADDENDUM A: SAMPLE NOTICE OF REASSESSMENT ............................................................................................................3 ADDENDUM B: REHABILITATED REAL ESTATE PROGRAM ....................................................................................................5


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ADDENDUM C: TAX RELIEF PROGRAMS ...............................................................................................................................7 ADDENDUM D: SAMPLE TAX BILL........................................................................................................................................9


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INTRODUCTION

The Finance Department’s Real Estate Assessments Office is responsible for annually

assessing all real property in Prince William County, maintaining property ownership records, and administering the County’s tax relief programs. In order to perform these duties, the as-sessments office gathers and maintains data on every property in the County. The assessments office also collects and analyzes data pertaining to real estate market indicators such as sales and property income and expense data. This information enables staff to assess property at fair market value and to develop summaries of the County’s real estate.

Real estate assessments and taxes are based on the “tax year”, which coincides with the calendar year. Assessments for 2002 were made effective on January 1, 2002, and were entered into the County’s 2002 landbook. Tax payments are divided into two equal installments. Pay-ment for the first installment is due July 15 and payment for the second installment is due De-cember 5. The County accounts for the revenues from this tax during the following fiscal year. That is, real estate assessments and taxes for tax year 2002 form the basis for Fiscal Year 2003 County revenues. All Fiscal Year 2002, or tax year 2001, information is presented in this re-port. Tax year 2002 or Fiscal Year 2003 information is also presented although supplemental assessments and rollback taxes for tax year 2002 are not yet available and are estimated. All references regarding years are tax (calendar) years rather than fiscal years unless otherwise noted.


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FUNCTIONS OF THE REAL ESTATE ASSESSMENT OFFICE

The Real Estate Assessments Office performs the following key functions:

• Maintains property records • Reassesses existing properties • Assesses new construction • Facilitates assessment notification and appeal • Administers real estate tax relief programs • Provides customer service

Maintaining Property Records The assessments office is responsible for determining taxable ownership of property.

This requires interpreting all legal documents relating to real estate. The documents (deeds, plats, wills, court orders, etc.) are recorded by the Clerk of Circuit Court and contain informa-tion regarding transfers, consolidations, subdivisions, and other legal changes.

After reading each document, the assessments office determines whether it affects the taxable ownership, size, or configuration of the property. If it does, the assessments office makes necessary changes to property records. In some cases, deeds conflict with County re-cords. The assessments office coordinates with settlement attorneys and the Geographic In-formation Service section of the Office of Information Technology to clarify and correct the deeds. This process ensures up-to-date records with accurate legal descriptions.

There are four types of documents and transactions handled by the assessments office:

• Wills – instruments recorded upon the death of an individual. They may or may not transfer real estate.

• New Lots – parcels that are created from a subdivision of existing land. • Deeds – legal instruments recorded that convey an estate or interest in real property.

One deed may transfer no parcels or several hundred parcels. • Transfers – legal changes in ownership of property.


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As the following table shows, property maintenance activity increased 23% from FY2001 to FY2002, the largest increase in five years. A more detailed history of property re-cord maintenance activity is shown in the Statistical Appendix, Table 1, page A-3.

Property Record Maintenance Activity

Comparison of Property Record Maintenance Activity

0

5,000

10,000

15,000

20,000

25,000

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Num

ber o

f Occ

uren

ces

WillsNew LotsDeedsTransfers

Reassessing Existing Properties The Code of Virginia, § 58.1-3252, requires counties to reassess real estate at least every

four years, and § 58.1-3253 authorizes annual and biennial assessments. Prince William County has performed annual assessments of property since l979, when computerization made this feasible. Tax policy organizations recommend annual reassessment because assessments at longer intervals may result in large disparities and inequities between properties, especially during periods of rapid changes in the real estate market.

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002Wills 473 520 550 500 408 New Lots 2,945 2,130 3,189 3,867 4,779 Deeds 10,438 12,120 12,941 16,100 20,317 Transfers 14,381 14,243 14,831 16,652 20,239 Total Activity 28,237 29,013 31,511 37,119 45,743


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Regular reassessment helps maintain equity between properties as market conditions change. Maintaining equity is a primary goal in the assessment of real estate for tax purposes. The standard for all assessments in Virginia is established in the Virginia Constitution, Article X, Section 2, which requires assessment at “fair market value”. The Code of Virginia § 58.1-3253 further provides that annual assessments are to be made as of January 1 of each year. The only exception to this requirement is for certain agricultural, forestal, horticultural, and open space property in the Use Value Assessment Program (see page 12). To perform equitable as-sessments, the assessments office must gather accurate and consistent property information and perform proper analyses of sales and other market indicators.

Collection of Data The assessments office collects information on property descriptions, sales, income and

expenses, and other real estate market data. To ensure property descriptions are accurate, County appraisers periodically inspect properties and verify current data. Property characteris-tics are relatively stable, and physical inspections of each property are not necessary every year. However, physical characteristics such as condition do change slowly over time, and properties are reviewed approximately every five years to ensure assessments are based on accurate in-formation.

Sales and income data are the primary data sources for establishing the value of real es-tate. Sales transactions are used as the basis for valuing most residential properties in the County. Because inaccurate sales information can lead to incorrect conclusions about property values, sales must be reviewed to verify the physical and financial circumstances that led to a particular sale price. This review may include a physical inspection of the property to confirm its physical and economic characteristics. The review may also include contact with the buyer, seller, or other parties involved in the transaction to verify the presence and amount of unusual financial terms that may have affected the sale price. To aid in valuing commercial and indus-trial property using the income approach, the assessments office collects income and expense information from commercial property owners.


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Analysis of Data The assessments office analyzes the information about market activity (sales, income,

etc.) and values property based on the real estate market. Properties are reassessed each year. Therefore, each year the most recent sales, income information, and other market factors are studied and values are re-assessed according to the current real estate market.

Application of Results Appraisers use several approaches to value property for assessment purposes. These ap-

proaches are discussed below.

Cost Approach In the cost approach, the structure value is determined by first estimating the cost to re-

place the building with a new one, and then subtracting depreciation, which makes the existing building worth less than the cost of a new one. Depreciation can be caused by physical deterio-ration, functional obsolescence (poor functional design), or by economic obsolescence (effects of factors outside the property such as high traffic). The structure value is added to the land value to produce total value by the cost approach.

Sales Comparison Approach The sales comparison approach is based on the principle of substitution by comparing a

property with similar properties that have sold. In this approach, several similar properties with recent sales are selected. Each of the sale prices is adjusted for differences between the prop-erty that sold and the subject property. This gives an indication of what each of the buyers would likely have paid for their property had it been identical to the subject property.

Income Capitalization Approach The income capitalization approach produces a value indication by converting cash

flows into property value. In this approach, the effective gross income of a property is esti-mated by considering market rents, vacancy rates, and collection losses. Estimated normal op-erating expenses are deducted to generate an estimate of net operating income. This income is capitalized into an estimate of value by application of an appropriate market capitalization rate.


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Performance Measurement The tool used to measure the accuracy of assessments is the assessment-to-sale ratio,

which is calculated by dividing the assessment by the selling price. For example, a single fam-ily home assessed for $140,000 that sells for $160,000 has an assessment-to-sale ratio of 87.50%. This ratio is calculated for all valid sales in the County and is used to monitor the level and equity of assessments. The median assessment-to-sale ratio is called the level of as-sessment. The median (midpoint of arrayed ratios) is used to reduce the effect of outlying ra-tios.

The median level of assessment is the performance statistic published annually in the Assessment/Sales Ratio Study by the Department of Taxation for the Commonwealth of Vir-ginia. The median level of assessment is the most accurate indicator of a locality’s existing assessment/sales ratio. The State calculates the 2001 level of assessment by comparing January 1, 2001 assessed values to sales occurring during calendar year 2001. Sale prices increased during the year due to the rising real estate market and inflation. Assessments, however, do not change during the year. On January 1, 2001, the assessments were closer to the sale prices than the level of assessment indicates. For calendar year 2002, the median level of assessment is estimated to be 82.36%.

Equity of assessments is also published in the Assessment/Sales Ratio Study and indi-cates the uniformity in real property assessment by measuring average error. The average error is the average percentage each sale deviates from the median ratio or level of assessment. A small average error indicates individual ratios are relatively close to the level of assessment. A large average error indicates ratios vary greatly. For tax year 2001 sales, the estimated average error is 8.35%.


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The following table shows the assessment level and error for 2000 and 2001. A more detailed summary is in the Statistical Appendix, Table 10, page A-10.

Assessment Performance

* Insufficient sales. Note: Performance data for 2000 is provided in the State Department of Taxation’s Sales Ratio Study. The 2001 report from the State

will be published in February of 2003. Performance data for 2001 are therefore estimated by the assessments office based on 2001 sales. For 2002, there is not enough information available to make an estimate.

Assessing New Construction During the year, the Real Estate Assessments Office receives information on building

permits issued by the County for new structures, additions, and remodeling of buildings. The assessments office monitors the progress of activity indicated on the permits. New construc-tion requires field inspections during the construction process for accurate measurements and description. The following tables show the number and estimated dollar amount of building permits issued by the County from FY1998 through FY2002.

Number of Permits Issued for Structures and Additions

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002New Residential 2,412 3,207 3,404 4,049 4,528Residential Additions, etc. 3,738 3,789 4,241 4,718 5,304New Non-Residential 35 70 61 60 79Non-Residential Additions, etc. 511 464 400 485 400Total 6,696 7,530 8,106 9,312 10,311

Source: Department of Public Works Note: Only taxable properties are included in the counts above.

----------------------Level------------------------- ----------------------Error--------------------2000 2001 2000 2001

Residential 88.98% 82.33% 6.65% 7.22%Apartments * * * *Commercial and Industrial 85.14% 80.92% 24.59% 26.83%Undeveloped Land * * * *Overall 88.96% 82.36% 7.06% 8.35%


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Estimated Dollar Amount of Permits Issued for Structures and Additions

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002New Residential 244,878,428$ 323,384,751$ 381,428,291$ 469,328,572$ 501,982,735$ Residential Additions, etc. 23,634,164 22,724,777 28,931,585 33,698,391 46,996,277 New Non-Residential* 18,923,400 146,303,734 51,459,076 134,661,716 91,090,568 Non-Residential Additions, etc. 19,415,532 18,062,103 22,292,023 34,394,686 40,882,357 Total 306,851,524$ 510,475,365$ 484,110,975$ 672,083,365$ 680,951,937$

Source: Department of Public Works Note: Only taxable properties are included in the amounts above. * The large increase in the estimated dollar amount of New Non-Residential Construction Permits for FY2001 was due to significant

increases in office, industrial, and recreation space.

History of Estimated Dollar Amount of Permits Issued

Facilitating Assessment Notification and Appeal

Assessment Notification The Code of Virginia § 58.1-3330 requires the County to notify property owners when-

ever reassessment results in an increase in assessed value. The County has chosen to notify all property owners of reassessment, even if there was a reduction or no change in the value.

$

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

in 000's New ResidentialResidential Additions, etc.New Non-ResidentialNon-Residential Additions, etc.


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This notification takes place in March of each year and advises the taxpayer of the previous year’s assessment and the current assessment. (See Addendum A, page B-3 for a sample notice of reassessment.)

Appeal Procedures Taxpayers who are uncertain about the accuracy of their assessment on the basis of

value or equity with other properties can request a review of their property value. The County appraiser considers market information relative to the property and information provided by the taxpayer. If this information shows the assessed value should be changed, the appraiser makes the necessary adjustment. If the evidence does not support a change, the appraiser explains the reasons for sustaining the assessment.

Taxpayers may also appeal to the Board of Equalization (BOE) or Circuit Court. Tax-payers are not required to appeal to the assessments office before appealing to the BOE or Cir-cuit Court. The BOE is comprised of eight County taxpayers and is established by the Board of County Supervisors to render an independent third party opinion in cases of disagreement be-tween the taxpayer and the assessing official. Although the BOE is a quasi-judicial board, there is no application fee and an attorney is not required.

Appeal Adjustments As a result of an appeal to the Real Estate Assessments Office, the BOE, or Circuit

Court, an assessment may be revised. Developers may appeal many residential lots at the same time and each lot appealed is counted separately. Upon review, the assessments office may change any or all of the lot values. Since each lot is counted separately, the number of appeals and the number changed by the assessor may be large and may fluctuate substantially from year to year. Some properties are appealed to both the assessments office and to the BOE. In tax year 2001, no cases were appealed in Circuit Court. There was one lawsuit resolved as a result of a negotiated settlement outside of court. As of June 30, 2002, there are nine court cases pending.


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The table below shows appeal activity for tax year 1997 to tax year 2001. A history of appeals and the resulting adjustments can be found in Table 3 of the Statistical Appendix, page A-3.

Summary of Appeal Activity

TY 1997 TY 1998 TY 1999 TY 2000 TY 2001Appeals to Assessor 616 376 736 624 352Changed by Assessor 317 292 373 517 214% Changed* 51% 78% 51% 83% 61%

Appeals to BOE 615 334 126 141 85Changed by BOE 42 42 50 18 4% Changed* 7% 13% 40% 13% 5%

Appeals to Court 8 2 2 1 0

Total Appeals 1,239 712 864 766 437Appeals as % of Total Parcels 1.28% 0.74% 0.89% 0.76% 0.43%

* May have been decreased or increased.

Administering Real Estate Tax Relief Programs Prince William County provides relief from real estate taxes and personal property taxes

for those who are elderly or disabled and meet specified income and net worth requirements. Certain land uses may also qualify for tax relief to encourage preservation of agriculture, for-estry, and open space. Lastly, older properties which undergo substantial renovations can re-ceive a partial tax exemption for the increase in taxes caused by the renovation.

Tax Relief for the Elderly and Disabled

Elderly or disabled persons are eligible for relief from real estate taxes on their home and a home site of up to one acre if they meet the following criteria:

• Are over 65 years of age on or before December 31, or are totally and permanently dis-abled.

• Have less than $195,000 in total assets (residence and up to one acre excluded). • Do not exceed the maximum combined income requirements set forth in local ordi-

nances.


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• The assessments office provides information to taxpayers about the tax relief program in the following ways:

- The notice of reassessment is sent to all property owners in March and contains the

criteria for tax relief and the deadline for filing (see Addendum A, page B-3).

- A tax relief brochure (in both English and Spanish) containing specific information regarding eligibility and application is available in the assessments office and vari-ous other County agencies (see Addendum C, page B-7), including Finance Depart-ment counters and senior citizens' centers.

- Tax relief information is available on the internet at http://www.pwcgov.org/finance/taxadmin/0_txrelov.htm.

The following table summarizes eligibility type (exemption or deferral) and the percent-age deferral of 2002 taxes for different ranges of income. The Board of County Supervisors establishes the income ranges based on the Housing and Urban Development (HUD) low in-come limit. For 2002, the limit is $42,000 and each range is determined using a percentage of that value.

2002 Tax Relief

Percent of HUD Combined Percentage ofLow Income Limit Income Tax Relieved$0-$27,500 (base) $0-$27,500 100% Exemption

66%-85% 27,501-35,700 100% Deferred85%-90% 35,701-37,800 75% Deferred90%-95% 37,801-39,900 50% Deferred

95%-100% 39,901-42,000 25% Deferred

Each applicant must file an application for tax relief with the Real Estate Assessments Office each year between January l and April 15. The County sends renewal applications to those who received tax relief the preceding year. Individuals who do not receive an application may request one by calling the Real Estate Assessments Office. Applications are also avail-able at: http://www.pwcgov.org/finance/taxadmin/0_txrelief.htm.


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A summary of real estate tax relief for the elderly and disabled is shown in the following table. Additional historical information about real estate tax relief is provided in the Statistical Appendix, Table 2, page A-3.

Summary of Tax Relief for the Elderly and Disabled*

Real Estate 1998 1999 2000 2001 2002Households Exempted 682 731 712 864 827 Households Deferred** 211 188 204 131 139 Total #. of Households 893 919 916 995 966 Amount Exempted 905,620$ 1,010,781$ 998,470$ 1,176,134$ 1,439,894$ Amount Deferred 274,127 254,824 297,292 207,490 257,400 Total Amount Relieved 1,179,747$ 1,265,605$ 1,295,762$ 1,383,624$ 1,697,294$

Ave. Amount Exempted 1,328$ 1,383$ 1,402$ 1,361$ 1,741$ Ave. Amount Deferred 1,299$ 1,355$ 1,457$ 1,584$ 1,852$

Personal Property

Approved Personal Property Applicants not available 1,203 1,234 1,217 1,223

* Taxpayers may qualify for real estate tax relief, personal property, or both. ** Because of an increase in the income range for tax exemption, a number of persons who previously had their taxes deferred quali-

fied for exemption in 2001. Note: In 2002, Multiple qualifying properties owned by one taxpayer were eliminated and counted as one taxpayer.

Tax Relief Based on Use Value Assessment The Prince William County Use Value Assessment Program provides tax relief to cer-

tain agricultural, forestal, horticultural, and open space property owners. The program allows qualifying land to be taxed according to its use value rather than its market value. The State Land Evaluation Advisory Committee suggests values for land in the program. These values range from $20 per acre to $330 per acre, depending on the type of land.

The tax difference is deferred, but not automatically forgiven. The deferred tax remains payable for six years. When property owners of land in the Use Value Assessment Program either change the use to a non-qualifying use or re-zone their property to a more intensive zon-ing, they must pay taxes (including interest) on the difference between the property’s market value and its use value for the current year and the five most recent complete tax years. This tax is called a “rollback tax.” (See “Undeveloped Land,” page 24 for more information.)


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Partial Tax Exemption for Rehabilitated Real Estate An ordinance enacting a partial tax exemption for real estate that is substantially re-

paired, rehabilitated, or replaced became effective on January 1, 1998. The program is in-tended to encourage property owners to improve the condition and appearance of their proper-ties. All improved property types are eligible for the exemption. The rehabilitation or re-placement structure must increase the value of the original structure by at least 25% to qualify for the exemption. Minimum age and maximum size increase requirements depending on property type must also be met. Applications and information are available on the Internet: http://www.pwcgov.org/finance/taxadmin/0_txrehprog.htm

The tax exemption for properties in the rehabilitation program is applied over a fifteen-year period. The total tax saving is equal to 100% of the exemption each year for the first ten years. Over the next five years the tax savings is reduced and the exemption is phased out as follows: 80% in year 11, 60% in year 12, 40% in year 13, 20% in year 14, and 0% in year 5.

The tax exemption is transferable to a new property owner during the program period.

The following table provides information about properties currently receiving partial tax exemption.

Summary of Tax Exemption for Rehabilitated Real Estate

Property TypeDate Exemption

BeganTax Savings

for 2002Residential 1999 $2,988Commercial 2000 334Multifamily 2000 3,546Commercial 2000 4,086Commercial 2000 59,990Residential 2001 1,910Residential 2001 385Residential 2001 458Commercial 2001 2,647Residential 2002 339Residential 2002 1,451

Total Tax Savings $78,133


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Providing Customer Service The Real Estate Assessments Office provides services to all taxpayers in the form of ac-

curate, equitable assessments. In addition, each year the assessments office provides direct as-sistance to thousands of citizens on an individual basis. One of the most direct forms of cus-tomer service is responding to appeals by taxpayers who are not certain their assessment is cor-rect. Taxpayer appeals are explained in the “Appeal Procedures” section, page 9. Several other direct customer services provided by the assessments office are explained below.

Walk-in Customers The assessments office has two main types of walk-in customers: taxpayers and real es-

tate professionals. When taxpayers come to the Real Estate Assessments Office for assistance with understanding and applying for tax relief programs, the office staff works directly with them. The assessments office also has a brochure about tax relief for rehabilitated properties (see Addendum B, page B-5) and tax relief for the elderly and disabled (see Addendum C, page B-7). Most appraisers and real estate agents use the assessment office’s sales lists, microfiche copies of tax records, and on-line access to the assessment database for research purposes.

Telephone Requests From Real Estate Professionals While assessment information is available at the Real Estate Assessments Office to any

citizen free of charge, many real estate professionals including brokers, agents, attorneys, ap-praisers, and settlement companies prefer to have the assessments office do research for them. The assessments office handled these business services on a fee-for-service plan through a 900 telephone number at a charge of $2.00 per minute. Effective July 2001, the Real Estate As-sessments Office eliminated the 900 telephone number. The Real Estate Assessments Office and Taxpayer Services Administration provides this research over the phone free of charge.

Telephone Requests From Citizens and Public Agencies Many citizens call for information about the method of assessment used in valuing their

property or about tax due dates and other general facts. These, along with assessment appeals and calls from other public agencies, are handled as administrative calls.


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Internet Access Real estate assessment information is available free-of-charge on the County’s website. Ownership information, physical descriptions, sales history, and assessment history for each property in the County are provided on the website at http://www.pwcgov.org/realestate. A summary of customer service activity is shown in the following table.

Summary of Customer Service

FY1998 FY1999 FY2000 FY2001 FY2002Walk-in Customers 2,581 2,470 1,316 1,159 1,064 Real Estate Business Calls 16,216 17,524 9,311 8,127 *Citizen/Public Agency Calls 23,657 13,956 12,111 15,764 19,255 Internet User Sessions N/A N/A 160,859 275,757 401,272 Total 42,454 33,950 183,597 300,807 421,591

* 900 number was eliminated as explained on the previous page. A user session is a session of activity (all hits) for one user of the website. By default, a user session is terminated when a user is inactive for more than thirty minutes.

Internet activity has increased 46% from FY2001 to FY2002. The County’s internet sta-

tistics reports consistently demonstrate that Real Estate Assessments Office has the highest number of views, a count of hits to pages, and visitor sessions within the County’s website.


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REAL ESTATE VALUES

For the purpose of comparing and analyzing real estate assessments, property in the County has been divided into several categories. The following table compares assessed values for each type of property for tax years 2001 and 2002. Landbook values are assessments as of January 1. State-valued public service assessments and supplemental assessments are added to the landbook to form the total tax base for the County. The assessed values of tax-exempt properties are added to taxable properties to show the total assessed value of the County.

2001 and 2002 Assessed Values*

2001 2002 PercentageAssessed Value Assessed Value Change

Taxable Landbook Residential 13,733,685,800$ 17,265,443,000$ 25.72 Apartments 749,986,200 892,952,600 19.06 Commercial and Industrial 2,760,787,100 3,115,383,400 12.84 Undeveloped Land 336,111,300 249,277,100 (25.83)Total Taxable Landbook 17,580,570,400 21,523,056,100 22.43

Supplements (1)

Residential 261,739,000 221,590,300 Apartments 20,916,000 25,500,000 Commercial and Industrial 37,090,600 23,656,900 Undeveloped Land 1,418,700 3,615,200

Total Supplements 321,164,300 274,362,400 (14.57)Public Service (2) 887,525,905 902,412,445 1.68

Total Tax Base 18,789,260,605 22,699,830,945 20.81Tax Exempt 1,529,680,800 1,646,500,800 7.64Deferred Use Value (3) 242,619,200 270,244,900 11.39 Total County Value 20,561,560,605$ 24,616,576,645$ 19.72

*2001 and 2002 Assessed Values form the basis for FY2002 and FY2003 revenues, respectively.

(1) Supplements are taxes billed for construction completed during the year and rollback taxes for properties that were eliminated from the use value program due to re-zoning or development. Supplements 1, 2 and 3 for 2002 are not currently available. The values shown are estimated.

(2) Public Service assessments are received by the County from the State in September of each year. (3) Deferred use value is the difference between the market value and use value of properties in the Use Value Assessment Program.


17

Composition of Tax Base—2002 Assessed Values

Public Service4% Apartments

4% Commercial14%

Undeveloped Land1%

Residential77%

Landbook Values: Growth and Appreciation The 2002 landbook contains assessed values for all properties in the County as of Janu-

ary 1, 2002. The following categories of assessments are not included in the landbook:

• Assessments for state-valued public service properties (these are received from the State in September each year)

• Supplemental assessments (these are made after January 1, 2002)

Each year, changes in landbook values for each category can be divided into two main influences: growth and appreciation. Changes in value due to growth result from the construc-tion of new buildings and from land subdivisions. As the table on the following page shows, the residential, apartments, and commercial categories experienced positive growth. Subdivi-sions and reclassification caused negative growth in undeveloped land.

Changes in value due to appreciation are the result of changes in real estate market con-ditions, changes in property descriptions, physical deterioration, renovations, and additions. For the 2002 landbook, these factors caused existing residential, commercial, apartment proper-ties, and undeveloped land to increase in value. Overall, the landbook value increased 7.12%


18

for growth and 15.30% for appreciation, resulting in a total increase of 13.31% in the 2002 landbook value.

The table below shows the 2001 to 2002 landbook changes attributable to growth and appreciation. Detailed and historical data are in the Statistical Appendix page A-11.

Changes in Landbook Values—2001 to 2002

Percent Percent TotalGrowth Appreciation Percent Change

Residential 8.25 17.47 25.72 Apartments 8.28 10.78 19.06 Commercial/Industrial 6.20 6.65 12.84 Undeveloped Land (33.82) 7.99 (25.83) Total Landbook 7.12 15.30 22.43

Residential The residential category includes improved and unimproved parcels zoned for residen-

tial use except multifamily rental apartment units. The improved parcels in this category are mostly single family homes, townhouses, and condominiums. Total landbook value for resi-dential properties increased 25.72% between 2001 and 2002. Growth caused an 8.25% in-crease in the residential assessed value. There were 4,043 new residential units with an aver-age value of $287,903 added to the tax base for tax year 2002. Appreciation caused the re-maining 17.47% increase in the residential landbook. The table below shows the landbook value of residential property for the last three years and the following page shows the composi-tion of the residential category, the composition of new construction, and the average assessed values of residential properties.

Residential Landbook Assessments (Tax Years) 1998 1999 2000 2001 2002

Landbook Values $10,251,508,500 $10,930,281,700 $12,025,990,000 $13,733,685,800 $17,265,443,000


19

Condominiums3%

Vacant Land4%

Townhouses20%

Single Family73%

Types of Residential Property--2002 Landbook

2002 2002 Percent of TotalParcel Count Landbook Value Residential

Single Family 56,683 $ 12,708,710,800 73.61 Townhouses 25,362 3,378,644,200 19.57 Condominiums 5,127 469,096,600 2.72 Vacant Land 13,522 690,354,200 4.00 Other 1,866 18,637,200 0.11 Total Resid. Landbook 102,560 17,265,443,000$ 100.00

Notes: This table is not a count of dwelling units in the County. Some parcels in the Single Family category may have more than

one dwelling unit. New homes that were partially built as of January 1, 2002 are counted as if they were complete, although their value is discounted depending on the level of completion. Tax-exempt properties and apartment units are not included in this ta-ble.

Types of Residential Property as Percentages of 2002 Residential Landbook Value

Of the 4,043 new homes built in the County during 2001, 78% were single-family homes and townhouses assessed at over $200,000 for tax year 2002. The average assessment of all residential new construction increased from $232,557 in 2001 to $287,903 in 2002. The following table shows the breakdown of new homes by type and value.


20

Residential New Construction by Type

Count Average Assessment



Single Family 2,901 325,823$ 158 190,481$ 3,059 318,832$ Townhouses 255 259,535 686 167,995 941 192,801 Condominiums 8 208,950 35 159,585 43 168,769 Total Residential 3,164 320,467 879 171,702 4,043 287,903

Average Residential Real Estate Tax for New Homes (Tax Rate = $1.23 per $100) 3,541$

New Units Over $200,000 New Units Under $200,000 All New Units

Note: This table includes residential homes completed during 2001. Homes partially built as of January 1, 2002 have been excluded.

As of January 1, 2002, all types of existing residential properties experienced increases in average assessed value. Listed below are the average assessments of residential dwelling types for the last five years.

Average Residential Assessments by Type

1998 1999 2000 2001 2002Single Family Detached $153,564 $160,347 $170,719 $189,567 $224,474Townhouses $98,953 $99,785 $103,867 $112,962 $133,259Condominiums $73,416 $73,264 $74,778 $78,672 $91,495All Types $132,435 $136,841 $144,979 $160,116 $189,946

Note: These averages do not include tax-exempt properties, vacant lots, residences on commercial or agricultural land, parcels with more than one residence, or houses that were partially complete as of January 1, 2002.


21

Comparison of Average Residential Assessments by Type

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Single FamilyDetached

Townhouses Condominiums All Types

1998 1999 2000 2001 2002

New houses can influence the overall average assessed value of all homes positively or negatively, depending on the size, quality, and type of new construction. In general, new houses are more expensive than typical existing houses in the County and therefore cause an increase in the overall average assessed value. As a result, even if market factors or physical deterioration cause a decline in the value of existing properties, construction of new units may cause the overall average value to increase. In recent years, there has been a general upward trend of average values in residential properties in the County. A ten-year history of average values is included in the Statistical Appendix, Table 6, page A-5.

Apartments Apartments include residential rental communities containing six or more rental units as

well as vacant land zoned for apartments. The unit count for 2002 including the small apart-ment complexes is 14,296, reflecting growth of approximately 4%. The average growth for the previous seven years is approximately 2.5%.


22

The assessed value of apartments increased 13.8% from 2001 to 2002. The average ap-preciation for the previous seven years is approximately 11%. Higher apartment rents and lower vacancies countywide contributed to the increase. The following table is a summary of apartment information for the last five years.

Apartment Summary (Tax Years)

1998 1999 2000 2001 2002Number of Apartment Units 12,218 13,237 13,237 13,725 14,296 Average Assessment per Unit $43,358 $46,386 $47,943 $53,561 $60,996

Improved Parcels Only 529,742,302$ 614,015,100$ 634,616,700$ 735,126,900$ 871,991,800$ Undeveloped Apartment Land 82,970,798 28,406,900 28,624,100 14,859,300 16,598,100 Total Landbook Values 612,713,100$ 642,422,000$ 663,240,800$ 749,986,200$ 892,952,600$

Notes: Tax-exempt properties are not included in this table. The unit count increased in 2001 as a result of new units as well as reclassification of several properties into the apartment

category.

Commercial and Industrial

Locally-Valued Properties Locally-valued commercial and industrial properties consist of all non-residential uses

such as retail, office, hotel, industrial, warehouse, and vacant parcels with commercial or indus-trial zoning. Properties owned by public service companies such as utility companies and rail-roads are not locally-assessed.

Locally assessed commercial and industrial values increased 12.84% from 2001 to 2002, as compared to a 12.76% from 2000 to 2001. New construction caused a 6.20% increase in the commercial tax base. There were 1,332,082 square feet of commercial space added to the tax base for tax year 2002. The largest amount of growth occurred within the office and retail cate-gories, which together account for 68% of new commercial space.

Existing commercial property reassessment caused 6.65% appreciation in landbook value. Industrial and hotel properties had the highest rate of appreciation while office, retail, and vacant land showed moderate increases. Existing technology services properties remained stable. The table below contains landbook assessment information about locally assessed commercial and industrial properties.


23

Locally-Valued Commercial/Industrial Assessments* (Tax Years)

1998 1999 2000 2001 2002Landbook Values $2,153,820,300 $2,232,907,300 $2,448,482,400 $2,760,787,100 $3,115,383,400

*State-valued public service properties are not included in this category.

State-Valued Public Service Properties

State-valued public service properties are assessed by the State Corporation Commission (SCC) and the Virginia Department of Taxation. The SCC assesses all telecommunications companies, water corporations, intrastate gas pipeline distribution companies, and electric light and power corporations. The Virginia Department of Taxation assesses railroads and interstate pipeline transmission companies. The County receives these assessed values in September of each year and then bills and collects taxes. Since the assessments are not available when first half tax bills are due on July 15, the first half taxes are based on the prior year assessment and adjusted on the second half tax bill. Table 9 and Table 11-A show the total assessed values for Public Service properties.

The following table and chart compare 2002 landbook values of different types of lo-cally and state-valued properties.

Types of Commercial/Industrial Property 2002 Landbook

Number of 2002 Percent of TotalParcels Landbook Commercial/Ind.

Locally Assessed Retail 899 1,383,765,800 34.57 Offices 805 316,420,000 7.90 Industrial 388 407,750,700 10.19 Technology Services 4 150,352,900 3.76 Other 739 454,153,400 11.35 Vacant Land 1,227 402,940,600 10.07Total Locally Assessed 4,062 3,115,383,400 77.83Total State Valued 887,525,905 * 22.17Total Commercial/Industrial 4,002,909,305$ 100.00

*estimated.


24

State-Valued Public Service Assessments (Tax Years)

1998 1999 2000 2001 2002Assessed Value $866,813,779 $871,897,315 $877,768,069 $887,525,905 $887,525,905 *

*estimated.

Comparison of Types of Commercial/Industrial Property 2002 Landbook

Undeveloped Land Undeveloped land consists of large acreage tracts of farm land and other undeveloped

properties greater than twenty acres. From 2001 to 2002, there was a 25% decrease compared to an 11% decrease from 2000 to 2001, and a 9% decrease from 1999 to 2000. Decreases are partially due to reductions in use value assessments determined by the State Land Evaluation Advisory Council (SLEAC). Re-zonings and land development caused some parcels to be re-classified, further reducing the value of this category. The following table reflects the land-book values of this category for 1998 through 2002.

Undeveloped Land Assessments (Tax Years) 1998 1999 2000 2001 2002

Landbook Values $433,959,900 $412,250,800 $377,675,900 $336,111,300 $249,277,100

Some of these undeveloped parcels qualify for the Use Value Assessment Program and are not taxed at market value. The State Land Evaluation Advisory Council recommends the use value assessments used by the County for property in the program. These values typically

Retail35%

Industrial10%

Technology Services4%

Vacant Land10%

Other11%

State Valued22%

Offices8%


25

range from $20 to $330 per acre (see “Tax Relief Based on Use Value Assessment,” page 12 for more information).

There are 840 parcels currently in the Use Value Assessment Program. The use value assessment for the land portion of these parcels is $37,426,100 while the assessment at market value is $307,671,100. (Buildings do not have use value assessments and are therefore as-sessed at full market value.) The estimated amount of revenue the County will defer for tax year 2002 is $3,324,012. The table below compares use values from 1998 and 2002. The use value for properties in the program decreased 6.10% from 2000 to 2001 due to value reductions made by SLEAC and the removal of several properties from the program. For a more complete history, see the Statistical Appendix, Table 5, page A-4.

Use Value Assessment Summary (Tax Years) 1998 1999 2000 2001 2002

Number of Acres 49,481 49,853 49,451 58,397 45,416 Number of Parcels 841 867 862 856 840

Market Value Assessment 293,863,600$ 299,518,000$ 292,415,900$ 280,506,300$ 307,671,000$ Deferred Assessment (246,694,700) (253,753,100) (252,068,600) (242,619,200) (270,244,900) Use Value Assessment 47,168,900$ 45,764,900$ 40,347,300$ 37,887,100$ 37,426,100$

Deferred Tax (3,355,048)$ (3,451,042)$ (3,377,719)$ (3,154,050)$ (3,324,012)$ Rollback Taxes* 356,859 223,779 366,864 1,667,785 600,000 Net Tax Deferred (2,998,189)$ (3,227,264)$ (3,010,856)$ (1,486,265)$ (2,724,012)$

*The 2002 value for rollback taxes is an estimate.

Supplemental Assessments Supplemental assessments include prorated assessments on newly completed construc-

tion and prorated assessments for properties which become taxable during the year. When con-struction is completed during the year, the increase in assessed value between the January 1 as-sessment and the completed value is prorated based on the number of months the property is complete and fit for occupancy. The owner of the property receives a supplemental tax bill for the prorated increased value.

Supplemental Assessments (Tax Years) 1998 1999 2000 2001 2002*

Assessed Value $164,949,100 $202,544,400 $255,571,900 $321,164,300 $274,362,400 *Supplemental assessments for 2002 are estimated.


26

Tax-Exempt Properties The Code of Virginia § 58.1-3200 requires the County to place an assessment on all

property except road rights-of-way and public service properties, which are valued by the State. Therefore, the County is required to assess all tax-exempt properties. For 2002, there were 1,773 tax-exempt parcels consisting of federal, state, and county-owned properties, as well as properties owned by churches, schools, and other tax-exempt organizations.

The total assessed value of exempt properties for 2002 is $1,646,500,800 and the total amount of taxes exempted is $20,251,960. A summary of the assessed values of tax-exempt properties by category for 1998 through 2002 and a chart showing the relative proportion of each category of tax-exempt properties for 2002 follows.

Assessed Values of Tax-Exempt Properties (Tax Years)

Note: Potomac Hospital was reclassified from the “Local” category to the “Other” category for tax year 2000, causing a significant increase in the value of the “Other” category. New construction and reassessment of County-owned properties largely offset the decrease in the “Local” category.

1998 1999 2000 2001 2002Federal 468,760,100$ 469,015,600$ 469,239,800$ 479,848,400$ 530,630,700$ State 86,101,700 89,219,600 87,615,600 90,327,900 99,841,500 Regional 16,255,900 16,277,600 16,453,200 17,041,000 18,014,400 Local 702,951,000 704,884,200 700,969,800 734,630,600 780,837,100 Religious 126,781,700 126,159,900 129,765,900 144,111,800 151,009,400 Charitable 23,100,500 22,889,500 23,141,400 23,412,700 25,748,900 Educational 9,338,900 10,315,600 10,334,200 10,660,600 11,578,900 Other 4,946,300 5,208,900 28,890,500 29,647,800 28,839,900

Total Tax Exempt 1,438,236,100$ 1,443,970,900$ 1,466,410,400$ 1,529,680,800$ 1,646,500,800$ % of Total County Value 8.91% 8.50% 7.13% 6.21% 6.69%


27

Types of Tax-Exempt Properties—Tax Year 2002

Local47% Regional

1%

State 6%

Federal32%

Charitable2%

Other2%

Educational1%Religious

9%

A-1

Statistical Appendix


A-2


Table 1: History of Property Record Maintenance Activity FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Wills 381 350 394 428 450 473 520 550 580 408New Lots 1,253 3,366 2,916 2,178 2,238 2,945 2,130 3,189 3,867 4,779Deeds 8,481 8,964 8,313 8,710 9,631 10,438 12,120 12,941 16,100 20,317Transfers * * * * * 14,381 14,243 14,831 16,652 20,239 *Data for transfers not tracked prior to FY1998.

Table 2: History of Tax Relief for the Elderly and Disabled

FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002Number Exempted 681 619 679 737 730 682 731 712 864 827Amount Exempted $807,108 $811,137 $912,509 $920,860 $952,411 $905,620 $1,010,781 $998,470 $1,176,134 1,439,894$ Number Deferred 72 81 135 154 163 211 188 204 131 139Amount Deferred $88,338 $88,228 $163,524 $181,398 $210,384 $274,127 $254,824 297,292 207,490 257,400

Table 3: History of Appeals Activity

TY 1992 TY 1993 TY 1994 TY 1995 TY 1996 TY 1997 TY 1998 TY 1999 TY 2000 TY 2001Appeals to Assessor 832 772 603 490 835 616 376 736 624 352Changed by Assessor* 545 441 437 269 607 317 292 373 517 214% Changed 66% 57% 72% 55% 73% 51% 78% 51% 83% 61%Appeals to BOE 690 1,127 494 641 415 615 334 126 141 85Changed by BOE* 259 301 168 229 189 42 42 50 18 4% Changed 38% 27% 34% 36% 46% 7% 13% 40% 13% 5%Appeals to Court 23 43 18 7 16 8 2 2 1 0Total 1,545 1,942 1,115 1,138 1,266 1,239 712 864 766 437 * May have been decreased or increased.

Table 4: History of Adjustments TY 1992 TY 1993 TY 1994 TY 1995 TY 1996 TY 1997 TY 1998 TY 1999 TY 2000 TY 2001

Number Adjusted 780 1,246 800 1,055 725 385 416 808 858 746Tax Amt. Reduced $1,187,221 $1,257,546 $1,260,667 $1,463,971 $1,332,849 $1,034,111 $1,244,595 $829,138 $707,867 $1,258,958 Note: These numbers include all adjustments as a result of appeals and highway takings.

A-3

Table 5: Use Value Assessment Summary

# of Market Value Use Value Assessment Percent Tax Rate Tax Rollback Net AnnualYear Parcels Acres Assessment Assessment Reduction Reduction per $100 Reduction Taxes* Deferral1993 883 53,346 381,613,100 49,787,500 331,825,600 86.95 1.36 4,512,828 255,108 4,257,7201994 891 53,301 339,645,200 50,133,800 289,511,400 85.24 1.36 3,937,355 291,060 3,646,2951995 881 53,049 320,012,900 46,461,400 273,551,500 85.48 1.36 3,720,300 288,028 3,432,2721996 885 52,929 318,738,300 50,737,900 268,000,400 84.08 1.36 3,644,805 389,541 3,255,2641997 849 50,796 302,470,900 47,371,000 255,099,900 84.34 1.36 3,469,359 1,221,495 2,247,8641998 841 49,481 293,863,600 47,168,900 246,694,700 83.95 1.36 3,355,048 356,859 2,998,1891999 867 49,853 299,518,000 45,764,900 253,753,100 84.72 1.36 3,451,042 223,779 3,227,2642000 862 49,451 292,415,900 40,347,300 252,068,600 86.20 1.34 3,377,719 366,864 3,010,8562001 856 58,397 280,506,300 37,887,100 242,619,200 86.49 1.30 3,154,050 1,667,785 1,486,2652002 840 45,416 307,671,000 37,426,100 270,244,900 87.84 1.23 3,324,012 600,000 2,724,012 *2002 rollback taxes are estimated.

A-4

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002-5%

0%

5%

10%

15%

20%

Average Overall Assessment % Change

Table 6: Average Assessed Value History of Residential Property Single Family All Percent Total Number

Year and Duplexes Townhouses Condominiums Residential Change of Units*2002 $224,474 $133,259 $91,495 $189,946 18.63% 86,2692001 189,567 112,962 78,672 160,116 10.44% 82,2732000 170,719 103,867 74,778 144,979 5.95% 79,0971999 160,347 99,785 73,264 136,841 3.33% 76,0091998 153,564 98,953 73,416 132,435 2.01% 73,6411997 149,867 97,802 72,319 129,831 0.88% 71,3791996 147,836 97,399 72,307 128,700 0.49% 69,3921995 146,752 96,179 66,148 128,073 0.49% 69,5151994 144,979 97,400 73,261 127,447 1.23% 67,7291993 141,319 98,995 74,996 125,901 -1.52% 65,955

* The units included in this table are all residential properties in the Single Family Detached, Duplex, Townhouse and Condominium categories. Houses on commercially zoned or agricultural parcels and houses that were partially complete as of January 1, 2002 are not included. Tax exempt properties and parcels owned by homeowners associations are also not included.

The difference between the unit counts in successive years does not always equal the number of new houses added. During reassessment, properties are often reclassified, causing the unit counts to be slightly inconsistent.

Average Assessed Value—All Residential 1993-2002

A-5

Table 7: Assessed Values and Estimated Market Values

--------------Residential-------------- --------------Apartments-------------- -------------Commercial-------------

Estimated Estimated Estimated Assessed Market Assessed Market Assessed Market

Year Value (1) Ratio (2) Value Value Ratio Value Value Ratio Value1992 8,602,192,270 95.43% 9,014,458,397 509,531,300 95.50% 533,540,628 2,286,505,527 90.60% 2,523,736,785

1993 8,606,600,138 93.04% 9,250,118,987 445,593,600 93.00% 479,132,903 2,103,214,900 68.50% 3,070,386,715

1994 8,803,946,984 93.17% 9,449,674,759 500,795,500 93.20% 537,334,227 1,951,947,452 93.80% 2,080,967,433

1995 9,188,858,123 93.66% 9,810,444,737 508,437,600 93.70% 542,622,839 1,895,893,800 85.10% 2,227,842,303

1996 9,485,586,185 93.75% 10,118,012,026 529,799,000 93.80% 564,817,697 1,953,576,715 89.23% 2,189,372,089

1997 9,860,168,457 94.62% 10,421,211,481 549,714,725 94.88% 579,378,926 2,012,226,900 91.06% 2,209,781,353

1998 10,369,909,600 94.20% 11,007,854,687 617,458,900 94.44% 653,810,779 2,160,783,700 90.01% 2,400,604,044

1999 11,098,693,500 92.71% 11,971,432,711 643,008,800 93.04% 691,110,060 2,257,215,900 92.17% 2,448,970,272

2000 12,227,392,600 88.98% 13,741,731,400 665,511,800 93.78% 709,652,165 2,473,855,100 89.57% 2,761,923,747

2001 13,995,424,800 82.33% 16,999,179,886 770,902,200 82.36% 936,015,299 2,797,877,700 80.92% 3,457,584,899

(1) Assessed values include landbook values plus all supplements. (2) Ratios are from the Department of Taxation Sales Ratio Study in years 1992 – 1999. Ratios for 2000-2001 are estimated.

A-6

Table 7: Assessed Values and Estimated Market Values (cont.)

--------------Land------------- -----------------Public Service----------- --------------------Totals--------------------Use Estimated Public Estimated Total Total Total

Value Market Market Service Market Use Value Market EstimatedYear Assm't (3) Assm't Ratio Value Equal Ratio Value Assessment Assessment Ratio Market Value1992 783,096,724 1,170,862,524 95.50% 1,226,034,057 778,794,325 95.50% 815,491,440 12,960,120,146 13,347,885,946 94.58% 14,113,261,306

1993 640,073,845 971,899,445 93.00% 1,045,053,167 798,714,196 93.00% 858,832,469 12,594,196,679 12,926,022,279 87.91% 14,703,524,241

1994 567,077,027 856,588,427 93.20% 919,086,295 832,541,600 93.20% 893,284,979 12,656,308,563 12,945,819,963 93.27% 13,880,347,693

1995 519,823,006 793,374,506 93.70% 846,717,723 835,162,501 93.70% 891,315,369 12,948,175,030 13,221,726,530 92.34% 14,318,942,971

1996 515,215,493 783,215,893 93.80% 834,984,961 825,728,680 93.80% 880,307,761 13,309,906,073 13,577,906,473 93.08% 14,587,494,534

1997 541,820,016 796,919,916 94.88% 839,924,026 830,430,439 94.88% 875,242,874 13,794,360,537 14,049,460,437 94.13% 14,925,538,660

1998 468,798,700 715,493,400 94.44% 757,616,900 866,813,779 94.44% 917,846,018 14,483,764,679 14,730,459,379 93.60% 15,737,732,428

1999 421,488,000 675,241,100 93.04% 725,753,547 871,897,315 93.04% 937,120,932 15,292,303,515 15,546,056,615 92.68% 16,774,387,522

2000 378,120,400 630,189,000 88.96% 708,395,908 877,768,069 88.96% 986,699,718 16,622,647,969 16,874,716,569 89.24% 18,908,402,938

2001 337,530,000 580,149,200 82.36% 704,406,508 887,525,905 82.36% 1,077,617,660 18,789,260,605 19,031,879,805 82.12% 23,174,804,251

(3) Certain agricultural and forestal land is granted special use value assessment.

A-7

Table 8: History of the Real Estate Tax Base*

----------1995---------- ----------1996---------- ----------1997---------- ----------1998----------Amount Percent Amount Percent Amount Percent Amount Percent

Residential 9,189$ 70.97 9,486$ 71.27 9,860$ 71.48 10,370$ 71.60 Apartments 508 3.93 530 3.98 550 3.99 617 4.26 Commercial/Ind. 1,896 14.64 1,954 14.68 2,012 14.59 2,161 14.92 Agricultural 520 4.01 515 3.87 542 3.93 469 3.24

Total Local 12,113 93.55 12,484 93.80 12,964 93.98 13,617 94.02 Public Service 835 6.45 826 6.20 830 6.02 867 5.98 Total 12,948$ 100.00 13,310$ 100.00 13,794$ 100.00 14,484$ 100.00

----------1999---------- ----------2000------------ ----------2001---------- ----------2002----------Amount Percent Amount Percent Amount Percent Amount Percent

Residential 11,099$ 72.58 12,227$ 73.56 13,995$ 74.49 17,265$ 77.04 Apartments 643 4.20 666 4.00 771 4.10 893 3.98 Commercial/Ind. 2,257 14.76 2,474 14.88 2,798 14.89 3,115 13.90 Agricultural 421 2.76 378 2.27 338 1.80 249 1.11

Total Local 14,420 94.30 15,745 94.72 17,902 95.28 21,523 96.04 Public Service 872 5.70 878 5.28 888 4.72 888 3.96 Total 15,292$ 100.00 16,623$ 100.00 18,789$ 100.00 22,411$ 100.00

*Assessments include original landbook plus supplements. Note: All amounts are in millions. Supplements are estimated for 2002.

A-8

Table 9: Public Service and Commercial/Industrial Assessments As a Percentage of the Tax Base

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Public Service 6.34% 6.58% 6.45% 6.20% 6.02% 5.98% 5.70% 5.28% 4.72% 3.96%Commercial/Ind. 16.70% 15.42% 14.64% 14.68% 14.59% 14.92% 14.76% 14.88% 14.89% 13.90%Total 23.04% 22.00% 21.09% 20.88% 20.61% 20.90% 20.46% 20.16% 19.61% 17.86%

Note: Supplements for 2002 are estimated.

A-9

Table 10: Assessment Performance Statistics

* Insufficient sales. ** 2001 ratios are estimated by the assessments office based on 2000 sales. There is not enough information to make an estimate for 2002. (1) "Level of Assessment" refers to the median ratio of assessment to selling price as reported by the Department of Taxation. (2) "Equity of Assessments" is the average percentage sales deviate from the median ratio. (3) Standards are provided by the International Association of Assessing Officers.

A-10

Level of Assessment(1)

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001** Standard (3)Residential Urban 95.80% 94.00% 94.10% 93.90% 94.06% 95.28% 95.20% 93.43% 89.31% 82.70% 100.00%Residential Suburban 93.60% 87.80% 91.00% 92.50% 92.14% 91.78% 89.90% 88.77% 85.14% 80.29% 100.00% Weighted Average (Residential) 95.43% 93.04% 93.17% 93.66% 93.75% 94.62% 94.20% 92.71% 88.98% 82.33% 100.00%Apartment * * * * * * * * * * 100.00%Commercial/Industrial 90.60% 68.50% 93.80% 85.10% 89.23% 91.06% 90.01% 92.17% 89.57% 80.92% 100.00%Agricultural * * * * * * * * * * 100.00%Overall Median 95.50% 93.00% 93.20% 93.70% 93.80% 94.88% 94.44% 93.04% 88.96% 82.36% 100.00%

Equity of Assessments(2)

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001** Standard (3)

Residential Urban 3.42% 4.23% 4.66% 7.04% 6.75% 5.50% 5.98% 5.91% 6.46% 6.48% 10.00%Residential Suburban 4.58% 9.10% 7.07% 9.69% 9.03% 10.37% 10.41% 10.71% 11.33% 11.49% 10.00% Weighted Average (Residential) 3.62% 4.98% 5.39% 7.49% 7.12% 6.42% 6.81% 6.65% 7.42% 7.22% 10.00%Apartment * * * * * * * * * * 15.00%Commercial/Industrial 12.42% 24.66% 12.53% 18.85% 31.07% 17.86% 28.13% 24.59% 22.86% 26.83% 15.00%Agricultural * * * * * * * * * * 20.00%Overall Equity 3.61% 6.84% 6.07% 7.77% 7.48% 6.87% 7.50% 7.06% 7.48% 8.35% 10.00%

Table 11A: Growth and Appreciation

2000 to 2001

2000 --------Appreciation-------- ------------Growth------------ 2001 TotalLandbook Value Amount % Amount % Landbook Value Change

Residential 12,025,990,000$ 914,392,600$ 7.60 793,303,200$ 6.60 13,733,685,800$ 14.20 Apartments 663,240,800 60,036,500 9.05 26,708,900 4.03 749,986,200 13.08 Commercial/Industrial 2,448,482,400 241,721,400 9.87 70,583,300 2.88 2,760,787,100 12.76 Agricultural 377,675,900 8,686,500 2.30 (50,251,100) (13.31) 336,111,300 (11.01)

Total Landbook 15,515,389,100 1,224,837,000 7.89 840,344,300 5.42 17,580,570,400 13.31 Public Service* 877,768,069 - - 9,757,836 1.11 887,525,905 1.11 Total 16,393,157,169$ 1,224,837,000$ 7.47 850,102,136$ 5.19 18,468,096,305$ 12.66

2001 to 20022001 --------Appreciation-------- ------------Growth------------ 2002 Total

Landbook Value Amount % Amount % Landbook Value ChangeResidential 13,733,685,800$ 2,398,823,000$ 17.47 1,132,934,200$ 8.25 17,265,443,000$ 25.72 Apartments 749,986,200 80,872,000 10.78 62,094,400 8.28 892,952,600 19.06 Commercial/Industrial 2,760,787,100 183,540,200 6.65 171,056,100 6.20 3,115,383,400 12.84 Agricultural 336,111,300 26,855,300 7.99 (113,689,500) (33.82) 249,277,100 (25.83)

Total Landbook 17,580,570,400 2,690,090,500 15.30 1,252,395,200 7.12 21,523,056,100 22.43 Public Service* 887,525,905 - - - - 887,525,905 - Total 18,468,096,305$ 2,690,090,500$ 14.57 1,252,395,200$ 6.78 22,410,582,005$ 21.35

*All changes in Public Service are attributed to growth. Public Service for 2002 is estimated.

Note: These tables do not include supplements.

A-11

Table 11B: History of Appreciation Rates Public

Landbook Residential Apartments Commercial Service Land Overall1992 -1.75% -10.50% -6.25% 0.00% -15.00% -3.60%1993 -1.71% -12.62% -11.46% 0.00% -22.28% -4.96%1994 -0.12% 5.11% -9.18% 0.00% -13.03% -2.09%1995 1.40% 0.50% -7.00% 0.00% -8.68% -0.47%1996 -0.61% 0.96% 0.36% 0.00% -3.86% -0.49%1997 0.14% -2.08% 1.41% 0.00% -4.99% 0.05%1998 1.30% 6.80% 5.40% 0.00% -4.56% 1.85%1999 2.02% 2.58% 2.15% 0.00% -4.43% 1.74%2000 4.31% 3.24% 1.76% 0.00% -1.23% 3.49%2001 7.60% 9.05% 9.87% 0.00% 2.30% 7.47%2002 17.47% 10.78% 6.65% 0.00% 7.99% 14.57%

Table 11C: History of Growth Rates Public

Landbook Residential Apartments Commercial Service Land Overall1992 2.15% 13.11% 4.38% 2.00% 10.14% 3.45%1993 1.59% 0.04% 3.75% 2.56% 5.88% 2.22%1994 2.37% 6.71% 2.56% 0.44% 0.00% 2.32%1995 2.81% 1.55% 3.23% 2.00% 1.64% 2.72%1996 3.91% 1.48% 3.47% -1.13% -0.52% 3.25%1997 3.61% 6.22% 1.67% 3.00% -0.52% 3.24%1998 3.89% 6.23% 1.94% 4.38% -0.55% 3.58%1999 4.60% 2.27% 1.54% 0.59% -0.58% 3.64%2000 5.71% 0.00% 7.89% 2.00% -7.16% 5.15%2001 6.60% 4.03% 2.88% 1.11% -13.31% 5.19%2002 8.25% 8.28% 6.20% 0.00% -33.82% 6.78%

Note: These tables included Public Service properties in addition to the landbook categories. All changes in Public Service are attributed to growth. Public Service for 2002 is estimated. These tables do not include supplements. These rates represent the effects of growth and appreciation from the prior year on the landbook for the year shown.

A-12

Table 11D: History of Residential Appreciation and Inflation

7.6%

17.5%

(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%C

Y80,

FY8

2

CY8

1, F

Y83

CY8

2, F

Y84

CY8

3, F

Y85

CY8

4, F

Y86

CY8

5, F

Y87

CY8

6, F

Y88

CY8

7, F

Y89

CY8

8, F

Y90

CY8

9, F

Y91

CY9

0, F

Y92

CY9

1, F

Y93

CY9

2, F

Y94

CY9

3, F

Y95

CY9

4, F

Y96

CY9

5, F

Y97

CY9

6, F

Y98

CY9

7, F

Y99

CY9

8, F

Y00

CY9

9, F

Y01

CY0

0, F

Y02

CY0

1, F

Y03

CY of Value, FY of Revenue

Actual Residential Appreciation, then Forecast: Actual Ave. 4.3%, with Forecast, 4.4%

Inflation Rate, Annual Ave. 3.9%

A-13

Table 12: Top Fifty Real Estate Taxpayers—FY2002

Rank Owner Name 2001 Assessment % of Tax Base

Rank Owner Name 2001 Assessment % of Tax Base

1 VA ELECTRIC & POWER COMPANY $392,129,517 2.123% 26 LOCKHEED MARTIN FEDERAL SYSTEMS $27,460,500 0.149%2 POTOMAC MILLS LTD PARTSHP $238,985,900 1.294% 27 E&A SOUTHEAST LTD PTNSHP $26,901,700 0.146%3 NORTHERN VIRGINIA ELECTRIC CO-OP $156,279,323 0.846% 28 BEAZER HOMES CORP $24,801,900 0.134%4 VERIZON SOUTH INC $136,455,279 0.739% 29 RIDGEDALE INC $24,798,100 0.134%5 AMERICA ONLINE INC $73,680,800 0.399% 30 JJJ AMPHITHEATER LIMITED PTNSHP $24,253,400 0.131%6 MANASSAS MALL LLC $65,048,200 0.352% 31 SRK MISTY RIDGE ASSOCS LTD PTNSHP $23,752,100 0.129%7 WASHINGTON GAS LIGHT COMPANY $62,206,162 0.337% 32 DIECA COMMUNICATIONS INC $23,256,667 0.126%8 WNH LIMITED PARTNERSHIP $61,714,700 0.334% 33 DOMINION COUNTRY CLUB LP $23,042,800 0.125%9 KIR SMOKETOWN STATION LP $52,296,600 0.283% 34 PULTE HOME CORPORATION $20,649,700 0.112%

10 HYLTON $47,257,500 0.256% 35 WINDSOR POTOMAC VISTA LTD PTNSHP $20,330,000 0.110%11 LBK LP $46,536,200 0.252% 36 PIEDMONT LC $19,923,600 0.108%12 PRINCE WILLIAM SQUARE ASSOCIATES $42,348,200 0.229% 37 POWELLS CREEK TOWNE SQUARE LTD $19,919,600 0.108%13 IBV-IMMOBILIENFONDS INT'L 2 USA LP $39,614,500 0.215% 38 SUMMERLAND HEIGHTS LP $18,487,100 0.100%14 COSCAN WASHINGTON INC $38,446,900 0.208% 39 WAL MART STORES INC $17,984,300 0.097%15 WESTMINSTER PRESBYTERIAN RETIR $37,364,100 0.202% 40 NVR INC $17,784,800 0.096%16 HYLTON IRENE TRUST $34,073,600 0.184% 41 BAYVUE APARTMENTS JOINT VENTURE $17,275,500 0.094%17 UNITED DOMINION REALTY TRUST INC $34,073,600 0.184% 42 POTOMAC FESTIVAL LTD $16,824,100 0.091%18 DALE FOREST INVESTMENTS L L C $33,627,100 0.182% 43 CAPSTONE ATLANTIC VI LP $16,754,600 0.091%19 ACQUIPORT MIDATLANTIC RETAIL INC $32,719,500 0.177% 44 COMBINED PROPERTIES LMTD PARTNSHP $16,472,200 0.089%20 U S HOME CORPORATION $32,539,300 0.176% 45 KENSINGTON ASSOCS LP $16,437,300 0.089%21 TC CARLYLE STATION CO $29,608,100 0.160% 46 RTJ LIMITED LIABILITY COMPANY $16,370,300 0.089%22 WESTGATE APARTMENTS LMTD PART $29,551,800 0.160% 47 COLUMBIA GAS SERVICES $15,644,381 0.085%23 METROPOLITAN LIFE INSURANCE COM $28,157,000 0.152% 48 ORCHARD GLEN EAST INC $15,558,600 0.084%24 PARADISE RIDGE ASSOCS LTD PTNSH $28,137,200 0.152% 49 PARADISE SUDLEY NORTH LTD PTNSHP $15,522,700 0.084%25 RICHMOND AMERICAN HOMES OF VA I $27,801,600 0.151% 50 HARRISON LIMITED PARTNERSHIP $15,335,800 0.083%

Top 50 as a % of Total Landbook: 12.43%Total 2001 Landbook Plus Public Service

Assessments: $18,468,096,305

A-14

Table 13: Tax Rates

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Base Tax Rate 1.3600 1.3600 1.3600 1.3600 1.3600 1.3600 1.3600 1.3600 1.3400 1.3000 1.2300

Fire DistrictsBuckhall 0.0800 0.0800 0.0800 0.0800 0.0800 0.0891 0.0963 0.0963 0.0963 0.0728 0.0728

Wellington 0.0700 0.0700 0.0700 0.0700 0.0700 0.0980 0.0980 0.0980 0.0980 0.0728 0.0728

Dumfries Fire 0.0440 0.0440 0.0381 0.0381 0.0381 0.0400 0.0400 0.0400 0.0400 ** **

Dumfries Rescue 0.0329 0.0329 0.0269 0.0269 0.0269 0.0286 0.0300 0.0300 0.0300 ** **

Dumfries ** ** ** ** ** ** ** ** ** 0.0728 0.0728

Gainesville 0.0410 0.0410 0.0440 0.0527 0.0527 0.0563 0.0607 0.0607 0.0607 0.0728 0.0728

Stonewall 0.0220 0.0320 0.0320 0.0320 0.0320 0.0356 0.0387 0.0387 0.0387 0.0728 0.0728

Evergreen 0.0650 0.0650 0.0650 0.0650 0.0650 0.0699 0.0786 0.0786 0.0786 0.0728 0.0728

Neabsco 0.0460 0.0530 0.0573 0.0573 0.0573 0.0622 0.0741 0.0741 0.0741 0.0728 0.0728

Nokesville 0.0800 0.0800 0.0800 0.0800 0.0800 0.0848 0.0984 0.0984 0.0984 0.0728 0.0728

O.W.L. 0.0450 0.0450 0.0450 0.0450 0.0450 0.0544 0.0577 0.0577 0.0577 0.0728 0.0728

Yorkshire 0.0800 0.0800 0.0800 0.0800 0.0800 0.0869 0.1000 0.1000 0.1000 0.0728 0.0728

Coles 0.0700 0.0800 0.0700 0.0800 0.0800 0.0858 0.0925 0.0925 0.0925 0.0728 0.0728

Lake Jackson 0.0800 0.0800 0.0800 0.0800 0.0800 0.0851 0.0921 0.0921 0.0921 0.0728 0.0728

Montclair 0.0166 0.0166 ** ** ** ** ** ** ** ** **

Montclair South 0.0196 0.0196 ** ** ** ** ** ** ** ** **

Dale City Sanitary 0.0600 0.0400 0.0200 ** ** ** ** ** ** ** **

Formost Court Service ** ** ** ** ** ** 0.2300 0.2300 0.2300 0.2300 0.2300

Woodbine Forest Service ** ** ** ** ** ** 0.1400 0.1400 0.1400 0.1400 0.0700

Lake Jackson Service ** ** ** ** ** 0.1100 0.1100 0.1100 0.1100 0.1100 0.1100

Bull Run Service 0.0600 0.0600 0.0600 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000

Bull Run Sanitary 0.1500 0.1500 0.1800 0.1800 0.1800 ** ** ** ** ** **

Occoquan Forest Sanitary 0.1600 0.1600 0.1600 0.1600 0.1600 0.1600 0.1600 0.1600 0.1600 0.1600 **

Prince William Parkway 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000

234 Bypass District 0.0200 0.0200 0.0200 0.0200 0.0200 0.0200 0.0200 0.0200 0.0200 0.0200 0.0200

Gypsy Moth Control 0.0033 0.0033 0.0033 0.0033 0.0033 0.0028 0.0028 0.0028 0.0028 0.0040 0.0040* Tax rates per $100 assessed value.** Not levied in that year.

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B-1

Addenda

B-2


B-3

Addendum A: Sample Notice of Reassessment

B-4

Addendum A: Sample Notice of Reassessment (cont.)

B-5

Addendum B: Rehabilitated Real Estate Program

Tax Exemption for Rehabilitated Real Estate Program

Tax Savings for Rehabilitating Your Home or Business What is the program? The Prince William Board of County Supervisors has approved an ordinance enacting a partial tax exemption for real estate that is substantially repaired, rehabilitated, or replaced. The tax exemption program encourages renova-tion and revitalization of aging structures located in the County. By improving the condition and appearance of existing properties, Prince William County will become a more appealing place for homeowners and businesses to invest. The amount of exemption is based on the increase in building value caused by rehabilitation. The minimum in-crease in value of the building is 25%. Exemptions are allowed for all property types: residential, commercial or industrial, and hotel or motel. Minimum age and size increase requirements apply. The tax exemption is applied over a 15 year period. The total tax savings is equal to 100% of the exemption each year for the first 10 years. Over the next 5 years the tax savings is reduced and the exemption is phased out as fol-lows: 80% in year 11, 60% in year 12, 40% in year 13, 20% in year 14, and 0% in year 15. The tax exemption is transferable to a new property owner during the program period. What are the requirements? Participation in the program is subject to the following requirements.

• The increase in building value due to rehabilitation, renovation, or replacement must be 25% or more of the building value before any work is done.

• Residential structures must be at least 15 years old and increase in size no more than 30%.

• Commercial or industrial structures must be at least 20 years old and increase in size no more than 100%.

• Hotel or motel structures must be at least 35 years old and increase in size no more than 100%.

• You must complete the rehabilitation by December 31 of the third calendar year after your application was submitted.

• You must submit the application and $50 non-refundable application fee after you obtain appropriate building permits, but before any work is started.

• Taxes must be kept current to qualify and remain in the program.

• All work must conform to existing building and zoning regulations.

• Applications must be filed after January 1, 1998, but before December 31, 2002.

• The maximum length of time for tax exemption is 15 years.

B-6

Other Information The base value of the structure will be the assessed value before commencement of any work. The Real Estate Assessments Division will make a final appraisal of the structure after work is complete, or after three years, to determine the increase in value due to rehabilitation. All work must conform to building and zoning regulations. Increase in assessed value due to rehabilitation is not equal to rehabilitation costs. Tax exemption is for the base real estate tax rate only and does not apply to fire and rescue levy, gypsy moth levy, stormwater management fee, or any other special taxing districts. The tax exemption does not apply to land value. 5 Steps to Exemption To begin your real estate tax savings, follow these 5 steps toward exemption.

1. Building Permits Obtain all necessary building permits before applying for tax exemption. Contact the Con-struction Permits and Records Office at (703) 792-7125 or 792-6930. The building permit office is located in the McCoart Building at 1 County Complex Court, Prince William, VA 22192.

2. Complete Application Complete an application form for the Tax Exemption for Rehabilitated Real Estate Program. Include with the application copies of all necessary building permits and a $50 non-refundable ap-plication fee. Submit the application to the Real Estate Assessments Division located at 4379 Ridgewood Cen-ter Drive, Suite 203, Prince William, VA 22192.

3. Determine Base Value Upon application approval, the Real Estate Assessments Division will inspect the property to determine the base value. The base value will be the assessed value before the commencement of any work.

4. Request Final Inspection When rehabilitation is complete, submit a written request for inspection to Real Estate Assessments Division. Include a copy of the certificate of occupancy with the inspection request. Re-quests should be received prior to November 1 of the year in which the rehabilitation is complete.

5. Begin Exemption If the property qualifies for the tax exemption program, exemption will begin on January 1 of the next calendar year.

How do I learn more? For more information about the exemption program, or to make an appointment to discuss the program, contact the Real Estate Assessments Division at (703) 792-6780. Offices are located at 4379 Ridgewood Center Drive, Suite 203, Prince William, VA 22192. Applications can be obtained by calling the Real Estate Assessments Division. Information booklets and applications are also available at the building permit office located in the McCoart Build-ing at 1 County Complex Court, Prince William, VA 22192.

B-7

Addendum C: Tax Relief Programs

A Citizen's Guide

to

Tax Relief Programs for

Elderly and Disabled Persons

Department of Finance

Real Estate Division

Prince William County Virginia

___________________________

Tax Relief Programs for Elderly and Disabled Persons

_________________________________________ Senior citizens and disabled persons who meet certain criteria (see eligibility criteria below) may be granted relief from all or part of real estate taxes, the vehicle license decal fee, and qualify for a reduced tax rate on their personal property tax. Qualifying limits may change from year to year. The limits in this brochure are current for the tax year beginning January 1, 2002, only. Tax relief is granted on an annual basis and a new application must be filed each year. Applications may be filed anytime after January 1st, but before April 15, 2002. _________________________________________

Eligibility Criteria _________________________________________ Senior Citizens: To qualify, an applicant must: -be 65 years of age or older as of December 31, 2001 -have a gross household income from all sources of not more than $42,000. In determining income, the first $6,500 of income earned by any relative living in the household other than the owner(s) or spouse is excluded. -have a combined financial net worth for the applicant and spouse residing in the household of not more than $195,000, excluding the residence for which the exemption is sought and up to one acre of land which it occupies.

B-8 Disabled Persons:

To qualify, an applicant must: -present a certification from the Social Security Administration, Department of Veterans Affairs or Railroad Retirement Board stating that the applicant is permanently and totally disabled, or if not eligible for certification by any of these agencies, the applicant must present a sworn affidavit from two medical doctors, who are either licensed to practice medicine in Virginia or are military doctors on active duty, to the effect that the applicant is permanently and totally disabled. The affidavit of at least one of these doctors must be based on an actual physical examination. -meet the same gross household income and net worth qualifications as those for senior citizens, except the first $7,500 of any income received by the applicant as permanent disability compensation will be excluded as gross household income. ________________________________

Relief ________________________________ Real Estate To qualify for real estate exemption or deferral, the residence must be owned and occupied by the applicant as of January 1, 2002, Total exemption of the tax on a home and up to one acre of land it occupies is granted to qualified appli-cants whose gross household income does not ex-ceed $27,500 annually. Total or partial deferral of the tax on a home and up to one acre of land it occupies is granted to qualified applicants whose gross household income is greater

than $27,500, but does not exceed $42,000. Tax deferral means that the taxpayer can defer payment of some or all of the real estate taxes until the prop-erty is sold or bequeathed. The taxes accumulate with interest, but are not delinquent and no collec-tion action is taken until the property is sold or be-queathed. The amount deferred depends upon in-come and is limited as follows: Combined Percent of Percent of Income Tax Relieved Tax You Pay $0 - $27,500 100% Exemption 0% $27,501 - $35,700 100% Deferred 0% $35,701 - $37,800 75% Deferred 25% $37,801 - $39,900 50% Deferred 50% $39,901 - $42,000 25% Deferred 75% Deferred real estate taxes are due and payable with interest within 60 days after the sale or transfer of the property, or within one year after the death of the last owner thereof who qualified for tax deferral. Deferred taxes, together with interest shall not ex-ceed 33% of the assessed value of the property. Please call the Real Estate Assessments Office for more information.

Personal Property and Decal Those applicants who meet the net worth criteria above and whose combined income does not exceed $42,000 may qualify for a reduced tax rate on their vehicle and relief from the vehicle license decal fee on one auto per household. Applicants need not own real estate or apply for real estate tax relief to be eligible. The applicant must be a resident of Prince William County as of January 1, 2002. The vehicle must be registered in Prince William County as of January 1, 2002. Relief from the vehicle license decal fee is an exemption and is not deferred. Residents of towns must apply to the town govern-ment for relief from the vehicle license decal fee.

Mobile Homes For the purposes of this program, mobile homes are eligible for tax relief as real estate, and the same qualifications apply. _________________________________________

Application _________________________________________ Application forms for this program are available beginning January 1st at the Real Estate Assessments Office or by mail. You may request an application form by calling 792-6780 during regular business hours. Current tax relief recipients will receive an application form in the mail. The deadline for filing an application for tax relief is April 15, 2001. This deadline may be extended by the Finance Director, but only if the applicant is ap-plying for the first time or for cases of hardship and where failure to apply by the deadline was due to reasons beyond the applicant's control. Please attach a letter to your completed application stating these reasons. NOTE: All information pertaining to gross house-hold income and net worth is confidential and not open for public inspection. The application form must be signed in the presence of a notary. This service is available free of charge to applicants at the following location: Real Estate Assessments Office 4379 Ridgewood Center Drive, Suite 203 Prince William, Virginia 22192-5308 Telephone: (703) 792-6780 The office is open Monday through Friday from 8:00 a.m. to 5:00 p.m.

B-9

Addendum D: Sample Tax Bill County of Prince William, Virginia Tax Year 2002 FINANCE DEPARTMENT REAL ESTATE TAX BILL Tax Administration Division Due July 15, 2002 How to Contact Us Property Information When calling, please provide this RPC No: Location- 703-792-6710 -Taxpayer Services 703-792-6293 -TTY GPIN- 703-631-1703 ext. 6710 -Metro Number You may also fax questions to (703) 792-4673 or send by Legal Description- e-mail to [email protected] See reverse side for office locations and hours of operations Assessment, Tax Rate, and Annual Tax Amount to Pay Land Value $ 28,800 First-Half Real Estate Tax $664.51 Building or Improvement Value $ 72,900 Past Due Balance 0.00 Total Assessed Value $169,800 Tax & Special Levy Rates (per $100 Assessed Value) BASE TAX RATE 1.23 GYPSY MOTH 0.0040 Total Due by JULY 16, 2001 $1,168.90 FIRE & RESCUE LEVY 0.0728 Total Tax Rate 1.3068 Total Annual Real Estate Tax

RETAIN THIS PORTION FOR YOUR RECORDS. THIS ALONG WITH YOUR CANCELLED CHECK IS YOUR RECEIPT

DETACH AND RETURN THIS PORTION WITH PAYMENT IN THE ENCLOSED ENVELOPE PRINCE WILLIAM COUNTY REAL ESTATE TAX

MAKE CHECK PAYABLE TO: PRINCE WILLIAM COUNTY

MAKE PAYMENTS TO:

PRINCE WILLIAM COUNTY P.O.BOX 85685

RICHMOND, VA 23285-5685


Documents

FINANCE DEPARTMENT PRINCE WILLIAM COUNTY, VIRGINIA · Finance Department Real Estate Assessments Office Organization Chart as of July 1, 2002 Director of Finance Christopher E. Martino,