Commercial real estate properties in Alexandria, Virginia are considered to be taxed by the City council. The taxing of commercial real estate properties will be used to generate $11 million yearly, to fund Alexandria’s transportation projects. Owners of these properties would have to pay 12.5 cents for every $100 assessed property cost.
Alexandria’s city officials will be holding three public consultations for the next 3 months to confer about the tax and transportation plan. The initial conference is going to be on Thursday, at 7:30 p.m. in the City Hall.
If Alexandria will opt for the 12.5 cents for every $100 assessed property cost, its will create an additional $11 million annual revenue. That is, for every $2 million commercial real estate properties, there would be an additional $2,500 annual rate that property owners would pay aside from what they are already paying.
In 2007, the Virginia General Assembly granted several tax options and new fees to assist in funding transportation projects for the cash-strapped Northern Virginia and Hampton Roads jurisdictions. All the revenues that are collected from the commercial real estate properties will be used for the city’s transportation projects.
Alexandria city council recently presented about 15 transportation projects, which are labeled as top priorities including a metro station.
According to Alexandria Chamber of Commerce’s president Tina Leone, Local owners for commercial real estate properties and businesses are impressed with the council’s transportation projects, but they are also mulling over their stand on the new tax law.
Originally, Alexandria’s city council declined to tax commercial real estate properties back in 2008.