Stafford County Commissioner of the Revenue unveils insights into surge in property assessments amidst low inventory, data center boom

Stafford County Commissioner of the Revenue Scott Mayausky delivered a comprehensive presentation to the Stafford County Board of Supervisors on Feb. 20, 2024, regarding increased property assessments.

Mayausky’s presentation, which marked his 12th time addressing the board on reassessments, aimed to shed light on the reasons behind the eye-popping surge in property assessments, which jumped 23% in two years.

The presentation delved into the property assessment process, with County Assessor Bart Stevenson providing detailed insights into the assessment methodology and market trends. Stevenson highlighted significant increases in residential and commercial property values, attributing the surge to factors such as low inventory, steady demand, and the rise of industrial and data center projects.

This low housing inventory has several implications for property assessments:

• Steady Demand: Despite the limited availability of homes for sale, there is still steady demand from buyers. This steady demand has kept property prices elevated over the past few years.
• Increased Property Values: The combination of low inventory and steady demand has led to increased property values. Stevenson highlighted that residential property values in Stafford County saw a significant uptick, rising approximately 13% during the reassessment period.
• Impact on Assessment Methodology: Assessors consider various factors when determining property values, including recent sales data, market trends, and property characteristics. Low housing inventory can create challenges in accurately assessing property values due to limited comparable sales data.
• Affordability Concerns: Rising property values can impact housing affordability for residents, particularly those looking to purchase homes in the area. The increase in property assessments may lead to higher property taxes, affecting homeowners’ overall housing costs.

The median home value in Stafford, as of January 2024, is $487,773.

Mayausky highlighted Virginia’s unique constitutional mandate to assess properties at 100% fair market value in his address. Effective January 1, 2024, reassessments are based on sales data, primarily from 2022 and 2023. The reassessment process, outlined by Virginia’s Code, requires at least 15 days of hearings to ensure transparency and accountability. Mayausky also emphasized Virginia’s status as a “truth in taxation” state, underscoring the importance of the effective tax rate in offsetting increased reassessment values.

As explained by Mayausky, the effective tax rate fluctuates to balance the increased property values. Per the Board of Supervisors request, re-assessments occur on a biennial cycle to accurately reflect market trends and distribute the tax burden equitably among taxpayers.

Mayausky addressed concerns about the confusion surrounding the effective rate, acknowledging the need for clarity and transparency. “I think that effective rate is confusing people,” said Hartwood District Supervisor Darrell English. “I don’t know if you can do one of your little videos, and you can put it out there and explain.”

Mayausky assured the board that efforts are made to educate taxpayers through various channels, including informational videos and online resources.

Residents were encouraged to appeal their assessments if they disagreed with the valuations, with a deadline of March 8 to submit appeals. Stevenson assured residents that the reassessment office is committed to addressing concerns and assisting throughout the appeal process.

Looking ahead, Mayausky outlined projections for future tax revenue based on ongoing development projects, particularly data centers, which are expected to contribute to the county’s tax base significantly.

During the presentation, Scott Mayausky discussed future tax projections from data centers, emphasizing their significant potential to contribute to the county’s tax revenue. Amazon cut a deal with the county to build at least four data centers, with the first to sit next to Stafford Hospital.

Mayausky noted that data centers are a high-profile class of property for the county.”We increased the land value for the identified data center projects by 429%. Fortunately, in the region, there were several sales that happened in December, so we had really good data. So we were able to be very aggressive but also very confident in the values that we put on the data centers,” he said.

Data centers typically house extensive computer equipment and infrastructure and have a high taxable value. Mayausky mentioned that a 250,000-square-foot data center building could potentially have upward of a billion dollars worth of taxable property within it. This substantial value contributes significantly to the county’s tax base.

Mayausky said the county could expect to see the full benefit of the data center reflected in the 2024 reassessment and that the county would likely see the most substantial revenue impact starting from January 1, 2026. Data center projects are expected to be fully operational by this time, with completed buildings and equipment installed, resulting in increased taxable property value.

Neighboring Prince William County, with about three times the population of Stafford County, has seen a proliferation of data centers in the past five years and will soon house the most data centers in the world.

Despite promises from county leaders of tax relief spurred by the data centers, an FY 2025 $1.77 billion proposed budget by its county administrator envisions an average increase of $243 for each homeowner. The median home value in Prince William County, as of December 2023, was $528,000.