[Archived] Alexandria Announces Real Property Assessments for 2007

City Press Release


	For Immediate Release	For More Information, Contact
	February 13, 2007 PIO# 036-07/jbh	Brian Hannigan, Director of Communications, or Raynard Owens, Communications Officer, at 703.838.4300 Raynard Owens, Communications Officer, at 703.838.4300

CITY OF ALEXANDRIA ANNOUNCES
REAL PROPERTY ASSESSMENTS FOR 2007
Total Property Value Rises by 4.43%

The City of Alexandria today announced that the overall value of real property in the City, including both locally assessed real property and state-assessed public service properties, has increased by $1.45 billion, or 4.43 percent over 2006 values, to a new total valuation of $34.24 billion.

Approximately 49.3 percent of the increase is the result of new construction. The remaining 50.7 percent, or $736.7 million, is the result of existing property value appreciation.

The overall increase for calendar year (CY) 2007 reflected a general weakening in the residential market during 2006. That weakening was offset by gains in the various commercial market sectors, a strong regional economy, and continued employment growth in the City.

Residential real property represents 59 percent of the total real property tax base, while commercial property and State Corporation Commission-properties, such as utilities and railroads, represent the remaining 41 percent.

Alexandria residents and other property owners will receive their individual assessment notices in the mail this week.

Changes in the Residential Real Property Tax Base

The overall value of City of Alexandria’s residential real property tax base decreased by 0.82 percent during the past year, or $166.2 million – from $20.37 billion in CY 2006 to $20.21 billion in CY 2007.

Overall, the City’s residential tax base declined by $590.2 million, or minus 2.9 percent. This decrease was almost entirely offset by new residential construction, which added $424.01 million, or 2.08 percent, to the residential base, resulting in an overall decline of less than 1 percent in total assessments for residential property.

The average assessed value for existing residential homes (single family and condominiums) decreased by 2.9 percent for 2007, to $509,593.

• The average assessed value for existing single-family homes (single family detached and townhouses) as of January 1, 2007, is $660,866 – a
decrease of $8,433 from the previous year, or minus 1.26 percent.

• The average assessed value for existing residential condominiums as of January 1, 2007, is $341,008 – a decrease of $23,278 from the
previous year, or minus 6.39 percent.

Residential assessments had increased at an average annual rate of 15 percent for single-family and 20 percent for condominiums during the six-year period from 2001 to 2006. During 2006, however, market changes occurred that resulted in level or declining assessments for CY 2007.

Changes in the Commercial Real Property Tax Base

The overall value of the City’s commercial real property tax base increased for 2007 by 13.27 percent, or $1.54 billion, to a total of $13.18 billion. New construction accounted for $291.7 million of the increase, while appreciation accounted for the balance of $1.25 billion. Existing commercial properties increased for 2007 by 10.8 percent, on average, with double-digit increases for multi-family rental, office, and hotels/motels. Appreciation reported for 2007 represents a 27.95 percent decrease from the previous year.

The value of new construction, however, increased by 52.53 percent for 2007. Much of this increase is attributable to new, multi-family rental, office and hotel construction.

Changes in the Public Service Commission Real Property Tax Base

The tax base for Public Service Corporation properties such as utilities and railroads, which are assessed by the State Corporation Commission, increased by $0.85 billion, or 9.5 percent.

More information about the City of Alexandria’s 2007 Real Property Assessments, including individual property assessments, is now available on the City’s website at www.alexandriava.gov/city/realestate. For additional information, contact the Department of Real Estate Assessments at 703-838-4646 or email realestate@alexandriava.gov.

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