Commercial real estate assessments for the City of Falls Church released this week have gone up very favorably, in stark contrast to the “disastrous” commercial assessments being experienced by neighboring jurisdictions.
So the chair of the Falls Church Economic Development Authority told the News-Press yesterday. Bob Young explained that “Arlington, Alexandria and Fairfax have seen their office assessments reduced by billions with office vacancy rates over 20 percent as many office buildings have sold for 75 percent less than their assessments/values in 2019. It is really hurting their income.”
By contrast, he said, “Falls Church is in a very comfortable and enviable position,” with the just-released assessments on commercial buildings being up 9.48 percent, according to City Hall.
The annual Falls Church real estate assessments have been released at City Hall, and while residential assessments are up modestly, at 3.72 percent, less than the rate of inflation, predicted whopping increases in commercial properties have resulted in an overall rise of 9.48 percent. That adds up to a net increase of 5.33 percent, it has been reported.
Individual property assessments will be posted in the mail this weekend, City Hall reports, and will be on the City’s website next week.
The total taxable assessed value for all properties in the City of Falls Church, as of January 1, 2024, is now $5,637,906,000, up by $285.48 million from a year earlier.
Single family homes and townhomes had varying changes but were up 3.64 percent and 2.46 percent overall, respectively. Residential condominiums had varying changes, but increased 5.37 percent overall.
Although office property values decreased modest 1.88 percent, commercial property values increased 9.48 percent overall since January 2023 due to what the City Hall statement called “a strong retail market and hotel properties continuing to recover. Multi-family property values increased 9.31 percent overall largely due to new construction.”
New construction, valued at $55.28 million, accounts for 19.4 percent of the increase in assessed value. Residential new construction accounted for $19.12 million of growth and commercial new construction accounted for the remaining $36.17 million of growth.
In addition, new construction at the West Falls development adjacent to Meridian High School is assessed currently at $173.26 million as of this January 1. “Real estate tax payments from this project will come to the City over the four year construction period under the terms of an Economic Development Agreement,” the City statement says.
According to EDA head Young, the residential assessments “appear in line” with the level of wider regional economic realities.
As set forth in the Virginia Constitution, real estate is assessed at 100 percent of fair market value. The City’s Office of Real Estate Assessment, headed by Assessor Erwving Bailey, on the job here since December 2021, calculates property value annually using mass appraisal techniques that are standard in the real estate assessment industry.
The notice of assessment is an appraisal of the fair market value of the property that goes into the mail later this week is not a tax bill. As property tax payments will be due in two installments on December 5, 2024 and June 5, 2025. property owners will receive bills prior to these dates.
The real estate tax rate will be determined in May, when the Falls Church City Council adopts the Fiscal Year 2025 Operating Budget and Capital Improvements Program and sets the tax rate..
Homeowners wondering if their assessment is correct can contact the Office of Real Estate Assessment at 703-248-5022. If one disagrees with the value established by the assessor, an appeal can be submitted to the assessor or to the Board of Equalization.
Property owners must prove that their property’s market value is either inaccurate or unfair. State law puts the burden of proof on the property owner to demonstrate that the assessment is incorrect.
Assessor Bailey came to Falls Church in December 2021 from Arlington County Department of Real Estate Assessment with over thirteen years of experience in real property tax assessments. During his tenure with Arlington County, he was a Senior Appraiser and Commercial Assessment Supervisor. Bailey earned the designations of Residential Evaluation Specialist (RES) and Assessment Administration Specialist (AAS) through the International Association of Assessing Officers (IAAO). An IAAO professional designation is a symbol of knowledge, experience and competence recognized around the globe.
Erwving earned his Bachelor of Science in Business Administration from Auburn University and his Master’s in Business Administration from Troy University.