The Fairfax County Board of Supervisors is set to hold a public hearing about a real estate tax exemption involving disability income tomorrow (Tuesday).
Fairfax County currently provides income-based real estate tax relief to homeowners based on income and disability.
A revision to the Virginia Code in July now allows localities to exclude the disability income of disabled relatives living in a taxpayer’s home from the total combined income calculation.
The proposal before the Board of Supervisors would codify that exemption for taxpayers in Fairfax County.
County staff has said the tax change could “potentially [expand] the number of properties that qualify for tax relief.”
More from Fairfax County:
The total amount of relief resulting from this amendment is difficult to estimate because the Department of Tax Administration cannot precisely determine how many individuals will apply and qualify under the revised calculation. It is anticipated that the fiscal impact will be minor.
The public hearings start at 3 p.m. and the tax one is set to start around 4 p.m.
If approved, the change would go into effect on Jan. 1.
Photo via Fairfax County/Facebook
Car Tax Due Today — Fairfax County “mailed more than 800,000 annual bills to vehicle owners, and because Oct. 5 falls on a Saturday, this year’s deadline to pay [the] bill is Monday, Oct. 7.” [Fairfax County]
Expect Metro Delays Today — The Orange, Silver and Blue lines will be impacted today due to an overnight rear-end train collision outside Farragut West. [WMATA]
CaliBurger Coming to The Boro — “Locally, the West Coast-styled company’s fries and burgers are served out of a teal-toned NoMa food truck at Wunder Garten. Under a newly inked deal, Caliburger will open next spring in the splashy Boro Development coming together in the heart of Tysons.” [Eater DC]
Art Around Tysons Metro Stations — “Public art not only adds beauty to a place, it can also help people orient themselves and find their way around. Tysons is no exception… Let’s take a look at four public art pieces at Metro stations in Tysons.” [Greater Greater Washington]
Mystery Set at Tysons Mall — “Like [Ellen] Butler’s first two Karina Cardinal mysteries, the setting of the book is local, starting with a mystery criminal absconding with diamonds from a Tysons Corner jewelry store.” [Patch]
The Grass is Greener — “New artificial turf has been installed at Larry Graves Park, replacing the natural grass field where bad weather contributed to game delays and cancellations. City officials hope the revamped surface will be more durable to the climate as well as to its users, but the installation wasn’t well received by all.” [Falls Church News-Press]
County Chair on Explosive Growth — “Sharon Bulova first won political office in Fairfax County 31 years ago on a slow-growth platform. She’ll leave the stage in January having presided over perhaps the most explosive period of growth in the county’s history. It’s a contradiction that Bulova fully acknowledges, and embraces.” [Washington Business Journal]
The City of Falls Church mayor is fighting a federal tax law change that he warns will put a strain on local residents.
In December 2017, Congress passed a new law that limits the amount of state and local taxes (SALT) that people can deduct from their federal income tax return to $10,000.
Known as the SALT deduction cap, this law has stirred up controversy.
Some people claim it puts people in areas with a higher cost of living at a disadvantage because they will likely pay more in taxes, while others say that SALT deductions disproportionately benefit a small proportion of wealthy taxpayers.
Tarter said he is one of a few politicians across the country that are spearheading an effort to reverse the decision or minimize the damage they say it will have on their communities in the near future.
“The new cap on the SALT deduction double taxes citizens on these payments and penalizes workers in high-cost areas, like my city, where wages and income are high but are fully matched by the cost of living,” Tarter told the committee, adding that the new law takes away more tax dollars from the city.
Falls Church City Manager Wyatt Shields, who manages the city’s finances, told Tysons Reporter that Falls Church residents spend more on housing comparative to anyone else in the country. He added that this new legislation only “exacerbates” the city’s lack of affordable housing.
According to Tarter’s statement to the committee, the median home price in the city is around $825,000 — “That doesn’t buy you a mansion but likely a modest brick rambler built in the 1950s.”
That median home price is drastically more than the $229,000 median home price across the U.S., according to Zillow.
“I’ve heard from a fair amount of people how their taxes have gone up and not at first realized implications,” Tarter told Tysons Reporter while talking about the fallout from the law.
The Internal Revenue Service (IRS) announced Wednesday, Aug. 14, that they will waive the tax underpayment penalty for more than 400,00 people who did not claim a special penalty waiver when they filed their federal income tax returns this year.
“Earlier this year, the IRS lowered the usual 90% penalty threshold to 80% to help taxpayers whose withholding and estimated tax payments fell short of their total 2018 tax liability,” according to an IRS press release.
Locally, this may help residents in the Northern Virginia area who were hit with unforeseen financial burdens recently because of the SALT deduction cap.
“There are no yachts in Falls Church, just lots of hard-working families trying to get by in the high-rent district,” Tarter said. “Most of the folks that I know are two-income families who serve their country through work in government or the military and want the best education possible for their children.”
Ultimately, Tarter hopes that the SALT deduction cap, currently sitting at $10,000 per household, is heightened or eliminated entirely.
“The next steps are up to Congress,” Tarter said. “I suspect, given the way things are right now, there probably won’t be any immediate action.”
Image via C-Span
Distilleries across the county are fighting a looming tax raise they say threatens their existence — and one Falls Church distillery is joining the fray.
If the tax rates expire, distilleries across the nation could see a spike in liquor production costs, possibly causing some local distilleries to nix plans for expansion or even close.
In an attempt to prevent that, Paluzzi gathered with more than 160 other distillery owners for a conference in D.C. last month to discuss dilemmas in the industry, set up congressional visits with senators and find a way to stop the federal tax increase.
Legislation and Numbers
The conference was held in conjunction with the American Craft Distillers Association (ACDA), a non-profit organization consisting of distillery owners and stakeholders, along with the Distilled Spirits Council.
The ACDA is one of the interest groups spearheading legislation to keep the current Federal Excise Tax.
It may be too late to get the law passed as an individual piece of legislation before the deadline, ACDA’s CEO Margie Lehrman told Tysons Reporter.
To work around this problem, the group hopes to instead piggy-back it onto other legislation set to be voted on, as a rider bill. She said because of support from over 272 cosponsors, the group is fairly confident this idea will work.
Impact on Local Business
“It is not a Republican bill. It’s not a Democrat bill. The entire alcohol industry is united,” Lehrman said.
Lehrman said she is fairly optimistic about the legislation passing as a “tax vehicle,” since the legislation has traction from over 70 senators around the country. However, Paluzzi worries that legislators will misunderstand the impact of the taxes on small companies.
Paluzzi said that legislators don’t want to be seen giving tax breaks to large distillery companies like Jack Daniels. “This [tax break] means nothing to them and everything to us,” Paluzzi said.
With the tax breaks from the federal government, Paluzzi was able to reinvest in his own business by hiring two new team members. “Any tax relief I was given was more than made up for in the local economy.”
As of 2010, there were fewer than 50 craft spirit producers in the U.S., Lehrman said. Now in 2019, there are over 2,000 — many of them still young companies.
Paluzzi said that it takes three to five years for distilleries to start making even a small profit because of high startup costs.
“This tax relief, for many, was a type of lifeline,” Lehrman said.
Both Lehrman and Paluzzi spoke to the cultural and historical value of distilleries.
Since the founding of Falls Church Distilleries (442 S. Washington Street) in 2017, Paluzzi and his son, Lorenzo, make various types of craft vodka, whiskey, gin, rum and brandy.
Rooted in their love for liquor, they are also proud of the history behind the distillery. Not only is it the only privately owned distillery in Fairfax County, but it was also the first to open in the area since prohibition ended in 1933.
Lehrman told Tysons Reporter that craft distilleries are becoming increasingly popular among millennials.
“If we wanna think about a product that’s made in America, there is nothing more demonstrative of innovation,” Lehrman said.
Currently, the bill is in the House Committee on Ways and Means.
Though no-one can say for certainty what the outcome will be, Paluzzi said he and other distillers will continue to network with other distillers and politicians while spreading awareness for this issue.
Paluzzi said that liquor has a “historical disadvantage” when it comes to the federal tax rate, and he wants to see “permanence and parity” with that of wine and beer.
“Virginia is the birthplace of distilleries,” Paluzzi said.
Image courtesy Michael E. Paluzzi
Big Names Among Potential Galleria Tenants — “Tysons Galleria… is in advanced talks with Tiffany & Co., Apple Inc. and gourmet grocer Balducci’s, in addition to high-end movie theater chain iPic, to open in portions of the space, according to two sources with knowledge of the discussions.” [Washington Business Journal]
Possible Money Motivation in McLean Double Murder — “The newly unsealed search warrant reveals why Megan Hargan might have carried out the crime: Megan’s mother discovered someone had attempted to wire ‘large amounts’ of money from her bank account on the day before her slaying. Pamela Hargan notified her bank the transfer was fraudulent. On the day of the killings, a second transfer was initiated to send money to a title company that was handling the purchase of a home by Megan in West Virginia.” [Washington Post]
Huge Tysons Development Still Looking for Office Anchor — “The developer behind Scotts Run had courted Amazon and Apple in hopes of landing an anchor for its planned 8M SF Tysons development, but neither of those panned out. Cityline Partners now continues to search for a tenant to kick off construction on the project’s office component. Cityline is one of several developers with major Tysons office projects waiting in the wings, hoping to sign pre-leases before breaking ground.” [Bisnow]
FCPS Offering Sub Gigs for Furloughed Feds — “Fairfax County Public Schools, the largest school district in Virginia, is offering substitute teaching positions to federal employees furloughed during the government shutdown. The hiring event will take place Friday, Jan. 11, from 2 p.m.-4:30 p.m. at the FCPS Administration Center, 8115 Gatehouse Road, Falls Church.” [Patch]
Senators Press Administration on Tax Refunds — “Virginia Senators Mark R. Warner and Tim Kaine (both D-Va.) have sent a letter to Treasury Secretary Steven Mnuchin asking how Virginia taxpayers will be affected by the government shutdown, which has left the Internal Revenue Service (IRS) short-staffed and potentially unprepared for the beginning of the 2019 tax-filing season.” [Fairfax Times]
McLean Foundation Sets Grant Deadline — “The McLean Community Foundation has set a deadline of Feb. 1 for non-profit organizations seeking to apply for its next round of grant funding. The foundation recently awarded nearly $67,000 in grants, including funding to McLean Little League and the Old Firehouse Teen Center, among others.” [InsideNova]
Friday Night Fire in Merrifield — “On Friday, November 30 at approximately 11:59 p.m., units from Fairfax County Fire and Rescue and the City of Fairfax Fire Department were dispatched for a reported kitchen fire in the 9400 block of Lee Highway in the Merrifield section of Fairfax County.” [FCFR]
More on Bluestone Lane Coffee Shop — “Bluestone Lane plans to break into the Northern Virginia market next year at the Boro development in Tysons Corner in mid-to-late 2019… The global brand from Australia is known for its ‘avocado smash’ toast, cold-pressed juices, custom teas, and other healthy fare.” [Eater]
PSA: Don’t Illegally Park in Accessible Parking Spaces — “With the holiday shopping season underway, finding parking at shopping centers can be harder than tracking down the hottest toy of the year. As a result, shoppers sometimes illegally park in accessible spaces reserved for people with disabilities. Approximately 75,000 county residents have a disability, so it is critical that these parking spaces remain available to them.” [Fairfax County]
Winchester Woman Arrested for Vienna Assault — “Vienna police officers went to Park Terrace Court, S.E., on Nov. 5 at 1:42 a.m. after authorities received a 911 hang-up call. Police located a resident who advised she had been assaulted by her girlfriend.” [InsideNova]
Fairfax Tax Deadline Extended — “Fairfax County Government Offices will be open Wednesday, December 5. However, because Wednesday has been proclaimed as a national day of mourning to honor the passing of former President George H.W. Bush, the due date for 2018 second installment Real Estate tax payments has been extended until December 6.” [Fairfax County]
Fairfax Co. Sales Tax Receipts Rise — “The Virginia state government distributed $15.6 million in sales-tax receipts to the Fairfax County government in October, an increase of 4.3 percent from a year before, according to new figures from the Fairfax County Department of Management and Budget.” [InsideNova]
Local Nonprofit Seeks Holiday Volunteers — “Fairfax-based non-profit Britepaths (formerly Our Daily Bread) is seeking individuals, families, companies and community groups to assist 800 individuals and families in need who reside throughout the Fairfax County area for the December holidays.” [Britepaths]
Taxpayer Groups, County Employees Split on Pension Proposal — “Before deciding on proposed changes to Fairfax County’s pension plans early next month, the Board of Supervisors will have to weigh the potential impact on employee happiness and recruitment versus the public’s ability to pay.” [InsideNova]
Theater for Tysons Galleria? — “We’re starting to get a glimpse of the next round of change coming to the high-end Tysons Galleria, as the mall’s owner may look to replace the Macy’s there with a theater, among other tenants, according to documents submitted to Fairfax County.” [Washington Business Journal]
Sales Tax Receipts Up — “Sales-tax receipts distributed to the Fairfax County government by the state government in September totaled $14.9 million, an increase of 3.7 percent from September 2017, according to new figures from the Fairfax County Department of Management and Budget.” [InsideNova]
Transportation Projects Slowing — “The organization… projects transportation revenue growth to be flat through 2024, and VDOT construction allocations are at their slowest since 2013 when the Virginia General Assembly passed House Bill 2313, legislation intended to generate more revenue for transportation projects.” [Fairfax Times]
The following article excerpt is from our content sharing partner, FairfaxNews.com.
With the possible exception of I-66 tolls, the Fairfax County property tax on cars is perhaps the most loathed tax in these parts. Car owners pay anywhere from a few to thousands of dollars, depending on the age and book value of their car or truck. Businesses pay an even steeper tax.
For reasons perhaps best not explored, the tax applies only in Northern Virginia, where residents also pay some of the highest property taxes in the Mid-Atlantic region, as well as the usual array of gas taxes, license plate fees, etc.
For those who have not opened their mail recently, take note: payment is due Friday, Oct. 5.
…Read more at FairfaxNews.com