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Prince William to hike taxes on data centers, provide relief to homeowners

The James McCoart Building at the Prince William County Government Center. [Photo by Uriah Kiser / Potomac Local News]
At the recent Prince William Board of County Supervisors meeting, which convened to discuss and finalize the upcoming fiscal year’s budget, a series of significant decisions were reached during the budget markup session. Supervisors engaged in deliberations and voting on various funding allocations and tax rates, reflecting the diverse perspectives and priorities within the board.

One of the pivotal outcomes of the session was the passage of a higher $3.70 per $100 $100 of assessed value Computer and Peripheral (data center) tax, which garnered a 7-1 vote in favor. It’s the second hike in as many years for this tax, up from $1.80 in 2022. Supporters have called for the county’s burgeoning data center industry, set to overtake neighboring Loudoun County as the world’s epicenter for server farms that power the internet, to pay more.

Additionally, there was unanimous support, with an 8-0 vote for setting the real estate tax rate at 92 cents per $100 assessed value. This move aims to balance meeting the county’s financial needs and alleviating the tax burden on residents. The decision means that, for the first time in years, residents will see an average decrease in their real estate tax bills of about $240 instead of the typical increase.

However, not all proposed funding allocations received unanimous approval. A notable instance was the failure to secure additional funds amounting to $3.9 million for the Potomac and Rappahannock Transportation Commission (PRTC OmniRide), with a tied 4-4 vote. This outcome reflects the differing opinions among supervisors regarding the prioritization of transportation initiatives within the budget.

Similarly, a proposal to allocate $833,000 for Americans for Wartime Experience, a long-talked-about museum that announced more than a decade ago that it would build a facility on 70 acres behind what is now an At Home store (formerly KMart) in Dale City, faced resistance and was ultimately rejected in a 6-2 vote.

Despite these challenges, several measures successfully gained approval during the session. This includes allocating funds for county services and initiatives, such as approving eight full-time equivalent (FTE) positions for the Commonwealth’s Attorney’s office. Additionally, updates to the data center ordinance were endorsed, reflecting the county’s commitment to supporting its growing technology sector while ensuring responsible development practices.

Moreover, the board approved various community initiatives to enhance residents’ quality of life. This includes funding for park updates and a litter control crew, underscoring the importance of preserving and maintaining the county’s natural resources and public spaces. Additionally, the approval of county-sponsored special events and the addition of a sustainability environmental analyst demonstrates the board’s commitment to promoting community engagement and environmental stewardship.

Supervisors also shared their perspectives and priorities regarding the budget during the meeting. Supervisor Tom Gordy emphasized the importance of fiscal responsibility while advocating for measures to reduce the tax burden on residents. Woodbridge District Supervisor Margaret Franklin highlighted the need to protect small businesses while supporting necessary tax increases to fund essential services. Coles District Supervisor Yesli Vega emphasized the importance of affordability and accessibility for county residents, advocating for measures to bridge the gap and ensure all residents can thrive in Prince William County.

The Board of County Supervisors will meet at 7:30 p.m. Tuesday, April 23, 2024, to adopt its annual spending plan, which will take effect on July 1.

Caitlyn Meisner is a freelance reporter for Potomac Local News.

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