Stafford Homeowners Face Higher Taxes as Veteran Relief Costs Grow

As Stafford County prepares its budget for the upcoming fiscal year, officials and citizens alike are raising concerns over the mounting financial burden of a state-mandated tax exemption for disabled veterans. The issue, discussed at the March 4, 2025, Stafford County Board of Supervisors meeting, has sparked debate over the program's sustainability and impact on county taxpayers. Mayausky: "A Worthy Program, But an Unfunded Mandate" Stafford County Commissioner of Revenue Scott Mayausky detailed the rapid growth of the veteran tax relief program, which has significantly expanded since its inception in 2011. "When the program was ratified in 2011, Stafford had 157 disabled veterans benefiting. Today, we have over 4,300," Mayausky stated. As a result, the financial cost to the county has skyrocketed. "In 2011, we granted less than $500,000 in relief. Today, it’s over $22 million," he explained, emphasizing the exponential increase in tax exemptions provided to veterans. Mayausky noted that this shift has placed a growing burden on local taxpayers. "Back then, the cost was about $12 per taxpayer. Now, the average homeowner in Stafford is paying nearly $400 towards this program," he said. Adding to the concern, Mayausky pointed out that Stafford carries an outsized share of the statewide responsibility. "Stafford County grants 8.5% of all veteran tax relief in Virginia while representing only 2% of the state’s population," he said. He warned that the financial strain is only expected to grow, with the most significant year-over-year increase yet—an additional $11 million in exemptions—set to impact the upcoming budget. "The Commissioner of Revenue’s office is processing 10 new applications every day, and we are on track to see our biggest increase in veterans' tax relief—an additional $11 million this upcoming fiscal year, equating to 4.23 cents on the real estate tax rate," he explained. Despite these concerns, Mayausky reiterated that the issue is not the merits of the program itself but its long-term sustainability. "This is a worthy program, but it is an unfunded mandate that Stafford taxpayers have been forced to bear disproportionately," he said, adding that county officials have pressed the General Assembly for relief, but no changes are expected in the immediate future. Durant: "The General Assembly Must Address This" Virginia State Senator Tara Durant (R-27, Stafford, Fredericksburg) echoed Mayausky’s concerns, emphasizing that Stafford faces the largest financial impact from the tax relief program. "Stafford has by far the most significant impact," Durant said. "Other localities are feeling the pressure too—Fairfax, Norfolk, Hampton Roads—but Stafford is shouldering the heaviest burden." Durant explained that she has introduced multiple budget amendments to provide relief, including one that would have adjusted the Local Composite Index (LCI) calculation to exclude disabled veterans' properties, making it easier for Stafford to qualify for additional state funding. "I was able to get 75% of the senators to co-sponsor that amendment, yet it still didn’t make it into the final budget. That is stunning to me," she said. Durant also noted that a proposal by Senator Jeremy McPike (D-Prince William, Stafford) to return 50% of lost revenue to affected localities stalled in committee without a vote. "We have to confront this, we have to address it. This is only going to grow, and ignoring it won’t make it go away," Durant said. "If we had such strong bipartisan support, why wouldn’t we at least study it?" She urged Stafford officials to strengthen their lobbying efforts in Richmond to push for a financial solution. "I really feel like if Stafford had a very strong lobbying effort, we could come up with creative ways to tackle this issue," Durant said. This year,  McPike (D-Prince William, Stafford) introduced Senate Bill 1312, which would have required the state to return 50% of the tax revenue lost due to veteran exemptions for counties where the impact exceeded 1% of total taxable real estate. "This was a fair and reasonable approach to ensure that counties with the highest fiscal impact, like Stafford, could get some relief," McPike told Potomac Local News. However, the bill failed to advance in the Senate Finance Committee, where it was dismissed due to its estimated $105 million price tag. McPike also floated an alternative funding solution, suggesting that the state increase education funding to offset the budgetary impact on localities. "If the state were to increase Stafford's school funding allocation, it would free up local revenue to help balance this growing burden," he said.

Delegate Paul Milde (R-64, Stafford County) echoed concerns about the financial strain on local governments and emphasized the need for state-level support. He sits on the General Assembly Military & Veterans Caucus, confirmed that lawmakers have recognized the issue and begun discussions.

"At the General Assembly Military & Veterans Caucus, on which I sit, we heard the same presentation. There were several members discussing and agreeing that this needs to be addressed from a funding perspective," he noted.

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