Stafford County Commissioner of the Revenue Scott Mayausky recently discussed the notable surge in property assessments in an interview with Potomac Local News Founder and Publisher Uriah Kiser, shed light on its causes and implications, as well as the role of data centers in county revenues.

Mayausky explained that the recent increase in property assessments, with residential homes rising by an average of 13% and commercial properties by approximately 23%, can largely be attributed to the fundamental economic principle of supply and demand. He noted the scarcity of available houses on the market as a driving factor behind the uptick in property values despite prevailing high-interest rates. He said, “I think it is simply supply and demand.”

Regarding potential stabilization factors, Mayausky pointed to the impact of interest rates, suggesting that a decrease could lead to a surge in homes hitting the market, potentially counterbalancing demand and stabilizing or even lowering property values.

Mayausky explained that the Board of Supervisors plays a crucial role in setting the tax rate, which directly affects county revenues and taxpayers. He emphasized the concept of “truth in taxation,” where any proposed tax rate exceeding the effective rate, calculated to offset assessment increases, is considered a tax increase and requires public scrutiny and hearings.

“It places the burden of tax increases on the [Board of Supervisors] and the tax rate, not the assessment office and the values of the property.”

Furthermore, Mayausky discussed the Board’s responsibility in budgeting and allocating resources, highlighting the importance of their priorities in determining how tax revenues are utilized. He acknowledged that while revenue from sources like data centers could potentially alleviate the tax burden on residents, the Board ultimately decides how to allocate these funds.

The Stafford County Board of Supervisors is set to advertise a tax rate to fund the county’s FY2025 budget on March 5. Once they chose the rate, supervisors can lower it, but can’t raise it before the Board adopts the final version of its budget sometime in April.

The budget proposed by County Administrator Ranfall Vosburg is, for the first time, north of $1 million, up 6% over last year. Several key areas that saw significant increases in the budget for the fiscal year, including education funding, which he proposed to grow by $19.6 million, indicating a commitment to supporting educational initiatives and programs.

Additionally, general government support saw a substantial rise of $9.3 million, reflecting investments in essential services and infrastructure. Public safety also received increased funding, totaling $7.2 million, emphasizing the county’s dedication to ensuring the safety and well-being of its residents.

Shortly after showing his budget to the supervisors, he announced his resignation, but did not say what his final day at the county will be. Vosburg came took the top local government job in Stafford after moving here from Florida 20 months ago.

Comparing Stafford County to neighboring jurisdictions, Mayausky acknowledged its higher tax rate, attributing it to its transition to a suburban-urban landscape and the absence of certain revenue streams like a business license tax. However, he expressed optimism about the potential revenue influx from data centers, citing projections surpassing a significant portion of the county’s tax base.

When discussing data centers, Mayausky highlighted their potential as a revenue boon for Stafford County, especially given its smaller population than neighboring areas. However, he cautioned that revenue streams from data centers could fluctuate due to depreciation schedules and varying computer equipment replacement cycles.

Regarding the frequency of property assessments, Mayausky explained that biannual assessments align with the county’s tax philosophy and approach, contrasting with jurisdictions where annual assessments are more common.

Mayausky emphasized that residents have until March 8 to challenge their property assessments if they believe discrepancies or inaccuracies exist.

This deadline is crucial because property assessments determine the value of a property for taxation purposes. If a property owner believes that their assessment does not accurately reflect the true value of their property, they have the opportunity to appeal it. This appeal process allows property owners to present evidence or arguments supporting their case for a reassessment or adjustment of their property’s value.

Stream the video to hear the whole conversation.

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.

Scott Mayausky, Stafford County Commissioner of the Revenue, has released the 2024 bi-annual property reassessment results, revealing significant changes in property values across various sectors. The comprehensive reassessment, aimed at ensuring equitable tax distribution, has led to noticeable increases in property assessments, reflective of the current market values.

Residential properties in the county have seen an average increase of 13% in assessments, indicating a substantial rise in home values. Commercial properties have experienced an even more significant jump, with assessments increasing by 23%, highlighting robust growth in the commercial sector. Agricultural properties are not far behind, with a 14% increase, while multi-family properties have seen a more modest rise of 9%.

Overall, the average assessment increase across all property types is 13%. These changes are part of the county’s efforts to align property assessments with their fair market values, ensuring that tax responsibilities are fairly distributed among property owners. The reassessment process complies with state mandates, with the primary goal being the fair allocation of tax burdens rather than increasing tax revenue.

Property owners in Stafford County are advised to review their new assessments as they will impact the property tax obligations for the coming year. Further information and details on how to appeal assessment decisions are available through the Stafford County Commissioner of the Revenue’s office.

The higher assessments will impact the average residential property tax bill Stafford County homeowners pay. The average real estate tax bill paid by Stafford homeowners in 2024 is $3,628.

The Stafford County Board of Supervisors will set the tax rate in April, with budget deliberations set to begin soon. County Administrator Randall Vosberg will present his annual budget proposal to the Board of Supervisors during its meeting on Tuesday, Feb. 20, 2024, at 3 p.m. The meeting will be held at the county government center, 1300 Courthouse Road, and is open to the public. It’ll be live-streamed here.

Mayausky will also update the Stafford County Board of Supervisors about his latest reassessment at the meeting.