Prince William County Real Estate Tax Records by sgt19112

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									REAL ESTATE ASSESSMENTS OFFICE
       FINANCE DEPARTMENT
  PRINCE WILLIAM COUNTY, VIRGINIA
                    COUNTY OF PRINCE WILLIAM                                      BOARD OF COUNTY SUPERVISORS
                    OFFICE OF EXECUTIVE MANAGEMENT                                         Sean T. Connaughton, Chairman
                    1 County Complex Court, Prince William, Virginia 22192-9201            Ruth T. Griggs, Vice Chairman
                    (703) 792-6600 Metro 631-1703 FAX: (703) 792-7484                      Hilda M. Barg
                                                                                  Maureen S. Caddigan
                                                                                  Mary K. Hill
                                                                                  John D. Jenkins
Craig S. Gerhart                                                                  L. Ben Thompson
County Executive                                                                  Edgar S. Wilbourn, III




                                                November 15, 2002


           TO:            Board of County Supervisors

           FROM:          Christopher E. Martino
                          Finance Director

           THRU:          Craig S. Gerhart
                          County Executive

           RE:            Real Estate Assessments Annual Report

           We have completed our annual report on real property and related real property activity in
           Prince William County for Fiscal Year 2002, or tax year 2001, and some tax year 2002
           when available.

           As you have already heard in previous presentations and correspondence regarding real
           property, this report documents the very active and increasing value of the real estate
           market.

           Should you have any questions regarding this information, please call Mr. Martino at
           703-792-6700.

           attachment




                                       An Equal Opportunity Employer
                  Real Estate Assessments Office
                       Finance Department

                    Prince William County, Virginia


          BOARD OF COUNTY SUPERVISORS

Sean T. Connaughton                               Ruth T. Griggs
 Chairman at-large                               Occoquan District
                                                  Vice Chariman
 L. Ben Thompson
 Brentsville District                            John D. Jenkins
                                                 Neabsco District
   Mary K. Hill
   Coles District                              Edgar S. Wilbourn, III
                                                Gainesville District
Maureen S. Caddigan
 Dumfries District                                Hilda M. Barg
                                                Woodbridge District


                     COUNTY EXECUTIVE

                           Craig S. Gerhart
This page intentionally left blank.
                    Finance Department Real Estate Assessments Office
                           Organization Chart as of July 1, 2002
                                                                                              Director of Finance
                                                                                         Christopher E. Martino, CPA


                                                                                         Assistant Director of Finance
                                                                                                 Steve Ferlotti


                                                                                 Real Estate Assessments Division Chief
                                                                                             Allison Lindner


                                                                          Secretary
                                                                       Diane Honeycutt




                                     Assessments Coordinator                                                                          Assessment Support Supervisor
                                       Susan Schager, CAE                                                                               Laura E. Morrison, CPFO




  Appraiser II            Appraiser II                      Appraiser II                         Appraiser II                GIS Analyst                 Financial Systems Analyst I
  Supervising             Supervising                       Supervising                          Supervising              Debra Watson-Grady                        (OIT)
  Ken Baxter          John E. Malone, RES                Kerem Oner, CAE                           Vacant                                                       Janet Barrett


  Appraiser I            Appraiser I                        Appraiser I                          Appraiser I                Account Clerk II                  Account Clerk III
 Wesley Riggins         Bridget Affeldt                    Susan Spicer                         Victor Molina              Delories Goodman                    Pam Morehead




   Appraiser I             Appraiser I                   Appraiser Trainee                       Appraiser I               Account Clerk II                     Title Clerk
    Vacant                 Mick Majdi                     Alvaro Delgado                        Mildred Norris              Theresa Harris                   LaPointe Crismond




Appraiser Trainee         Appraiser I                    Appraiser Trainee                      Appraiser I                Data Entry Clerk                      Title Clerk
  Ken Redding            Linda Morey                      Jessika Kontur                       Charlie Tolbert              Barbara Hill                          Vacant




Appraiser Trainee      Appraiser Trainee                 Appraiser Trainee                    Appraiser Trainee
 Michelle Turner       Tammy Palowitch                    Pam Stepanick                        Petra Svenhager
Real Estate Assessments Office                                                                                                                     2002 Annual Report


                                                                        TABLE OF CONTENTS
INTRODUCTION................................................................................................................................................................... 1

FUNCTIONS OF THE REAL ESTATE ASSESSMENT OFFICE.................................................................................... 2
  MAINTAINING PROPERTY RECORDS ...................................................................................................................................... 2
  REASSESSING EXISTING PROPERTIES .................................................................................................................................... 3
    Collection of Data .......................................................................................................................................................... 4
    Analysis of Data ............................................................................................................................................................. 5
    Application of Results..................................................................................................................................................... 5
    Performance Measurement............................................................................................................................................. 6
  ASSESSING NEW CONSTRUCTION.......................................................................................................................................... 7
  FACILITATING ASSESSMENT NOTIFICATION AND APPEAL...................................................................................................... 8
    Assessment Notification .................................................................................................................................................. 8
    Appeal Procedures ......................................................................................................................................................... 9
    Appeal Adjustments ........................................................................................................................................................ 9
  ADMINISTERING REAL ESTATE TAX RELIEF PROGRAMS ..................................................................................................... 10
    Tax Relief for the Elderly and Disabled ....................................................................................................................... 10
    Tax Relief Based on Use Value Assessment.................................................................................................................. 12
    Partial Tax Exemption for Rehabilitated Real Estate .................................................................................................. 13
  PROVIDING CUSTOMER SERVICE ........................................................................................................................................ 14
    Walk-in Customers ....................................................................................................................................................... 14
    Telephone Requests From Real Estate Professionals................................................................................................... 14
    Telephone Requests From Citizens and Public Agencies ............................................................................................. 14
    Internet Access.............................................................................................................................................................. 15
REAL ESTATE VALUES.................................................................................................................................................... 16
  LANDBOOK VALUES: GROWTH AND APPRECIATION ........................................................................................................... 17
  RESIDENTIAL ...................................................................................................................................................................... 18
  APARTMENTS ..................................................................................................................................................................... 21
  COMMERCIAL AND INDUSTRIAL.......................................................................................................................................... 22
    Locally-Valued Properties............................................................................................................................................ 22
    State-Valued Public Service Properties........................................................................................................................ 23
  UNDEVELOPED LAND ......................................................................................................................................................... 24
  SUPPLEMENTAL ASSESSMENTS ........................................................................................................................................... 25
  TAX-EXEMPT PROPERTIES .................................................................................................................................................. 26
STATISTICAL APPENDIX .................................................................................................................................................. 1
  TABLE 1: HISTORY OF PROPERTY RECORD MAINTENANCE ACTIVITY .................................................................................. 3
  TABLE 2: HISTORY OF TAX RELIEF FOR THE ELDERLY AND DISABLED ................................................................................. 3
  TABLE 3: HISTORY OF APPEALS ACTIVITY ............................................................................................................................ 3
  TABLE 4: HISTORY OF ADJUSTMENTS ................................................................................................................................... 3
  TABLE 5: USE VALUE ASSESSMENT SUMMARY .................................................................................................................... 4
  TABLE 7: ASSESSED VALUES AND ESTIMATED MARKET VALUES......................................................................................... 6
  TABLE 8: HISTORY OF THE REAL ESTATE TAX BASE* .......................................................................................................... 8
  TABLE 9: PUBLIC SERVICE AND COMMERCIAL/INDUSTRIAL ASSESSMENTS .......................................................................... 9
  TABLE 10: ASSESSMENT PERFORMANCE STATISTICS............................................................................................................ 9
  TABLE 10: ASSESSMENT PERFORMANCE STATISTICS.......................................................................................................... 10
  TABLE 11A: GROWTH AND APPRECIATION ......................................................................................................................... 11
  TABLE 11B: HISTORY OF APPRECIATION RATES ................................................................................................................. 12
  TABLE 11C: HISTORY OF GROWTH RATES.......................................................................................................................... 12
  TABLE 11D: HISTORY OF RESIDENTIAL APPRECIATION AND INFLATION ............................................................................. 13
  TABLE 12: TOP FIFTY REAL ESTATE TAXPAYERS—FY2002 .............................................................................................. 14
  TABLE 13: TAX RATES ....................................................................................................................................................... 15
ADDENDA .............................................................................................................................................................................. 1
  ADDENDUM A: SAMPLE NOTICE OF REASSESSMENT ............................................................................................................ 3
  ADDENDUM B: REHABILITATED REAL ESTATE PROGRAM .................................................................................................... 5

                                                                                                                                                                                           i
Real Estate Assessments Office                                                                                                          2002 Annual Report

     ADDENDUM C: TAX RELIEF PROGRAMS ............................................................................................................................... 7
     ADDENDUM D: SAMPLE TAX BILL........................................................................................................................................ 9




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Real Estate Assessments Office                                                 2002 Annual Report




                                    INTRODUCTION
         The Finance Department’s Real Estate Assessments Office is responsible for annually
assessing all real property in Prince William County, maintaining property ownership records,
and administering the County’s tax relief programs. In order to perform these duties, the as-
sessments office gathers and maintains data on every property in the County. The assessments
office also collects and analyzes data pertaining to real estate market indicators such as sales
and property income and expense data. This information enables staff to assess property at fair
market value and to develop summaries of the County’s real estate.
         Real estate assessments and taxes are based on the “tax year”, which coincides with the
calendar year. Assessments for 2002 were made effective on January 1, 2002, and were entered
into the County’s 2002 landbook. Tax payments are divided into two equal installments. Pay-
ment for the first installment is due July 15 and payment for the second installment is due De-
cember 5. The County accounts for the revenues from this tax during the following fiscal year.
That is, real estate assessments and taxes for tax year 2002 form the basis for Fiscal Year 2003
County revenues. All Fiscal Year 2002, or tax year 2001, information is presented in this re-
port. Tax year 2002 or Fiscal Year 2003 information is also presented although supplemental
assessments and rollback taxes for tax year 2002 are not yet available and are estimated. All
references regarding years are tax (calendar) years rather than fiscal years unless otherwise
noted.




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Real Estate Assessments Office                                                 2002 Annual Report




        FUNCTIONS OF THE REAL ESTATE ASSESSMENT
                         OFFICE
        The Real Estate Assessments Office performs the following key functions:

    •   Maintains property records
    •   Reassesses existing properties
    •   Assesses new construction
    •   Facilitates assessment notification and appeal
    •   Administers real estate tax relief programs
    •   Provides customer service


Maintaining Property Records
        The assessments office is responsible for determining taxable ownership of property.
This requires interpreting all legal documents relating to real estate. The documents (deeds,
plats, wills, court orders, etc.) are recorded by the Clerk of Circuit Court and contain informa-
tion regarding transfers, consolidations, subdivisions, and other legal changes.

        After reading each document, the assessments office determines whether it affects the
taxable ownership, size, or configuration of the property. If it does, the assessments office
makes necessary changes to property records. In some cases, deeds conflict with County re-
cords. The assessments office coordinates with settlement attorneys and the Geographic In-
formation Service section of the Office of Information Technology to clarify and correct the
deeds. This process ensures up-to-date records with accurate legal descriptions.

        There are four types of documents and transactions handled by the assessments office:

    • Wills – instruments recorded upon the death of an individual. They may or may not
      transfer real estate.
    • New Lots – parcels that are created from a subdivision of existing land.
    • Deeds – legal instruments recorded that convey an estate or interest in real property.
      One deed may transfer no parcels or several hundred parcels.
    • Transfers – legal changes in ownership of property.




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Real Estate Assessments Office                                                                         2002 Annual Report


        As the following table shows, property maintenance activity increased 23% from
FY2001 to FY2002, the largest increase in five years. A more detailed history of property re-
cord maintenance activity is shown in the Statistical Appendix, Table 1, page A-3.

                                              Property Record Maintenance Activity

                                               FY 1998             FY 1999       FY 2000     FY 2001         FY 2002
        Wills                                      473                 520           550         500             408
        New Lots                                 2,945               2,130         3,189       3,867           4,779
        Deeds                                   10,438              12,120        12,941      16,100          20,317
        Transfers                               14,381              14,243        14,831      16,652          20,239
        Total Activity                          28,237              29,013        31,511      37,119          45,743




                                       Comparison of Property Record Maintenance Activity
                                  25,000
           Number of Occurences




                                  20,000

                                                                                                          Wills
                                  15,000
                                                                                                          New Lots
                                                                                                          Deeds
                                  10,000
                                                                                                          Transfers

                                   5,000


                                      0
                                           FY 1998       FY 1999       FY 2000    FY 2001   FY 2002



Reassessing Existing Properties
        The Code of Virginia, § 58.1-3252, requires counties to reassess real estate at least every
four years, and § 58.1-3253 authorizes annual and biennial assessments. Prince William
County has performed annual assessments of property since l979, when computerization made
this feasible. Tax policy organizations recommend annual reassessment because assessments at
longer intervals may result in large disparities and inequities between properties, especially
during periods of rapid changes in the real estate market.




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Real Estate Assessments Office                                                  2002 Annual Report


        Regular reassessment helps maintain equity between properties as market conditions
change. Maintaining equity is a primary goal in the assessment of real estate for tax purposes.
The standard for all assessments in Virginia is established in the Virginia Constitution, Article
X, Section 2, which requires assessment at “fair market value”. The Code of Virginia § 58.1-
3253 further provides that annual assessments are to be made as of January 1 of each year. The
only exception to this requirement is for certain agricultural, forestal, horticultural, and open
space property in the Use Value Assessment Program (see page 12). To perform equitable as-
sessments, the assessments office must gather accurate and consistent property information and
perform proper analyses of sales and other market indicators.


Collection of Data
        The assessments office collects information on property descriptions, sales, income and
expenses, and other real estate market data. To ensure property descriptions are accurate,
County appraisers periodically inspect properties and verify current data. Property characteris-
tics are relatively stable, and physical inspections of each property are not necessary every year.
However, physical characteristics such as condition do change slowly over time, and properties
are reviewed approximately every five years to ensure assessments are based on accurate in-
formation.
        Sales and income data are the primary data sources for establishing the value of real es-
tate. Sales transactions are used as the basis for valuing most residential properties in the
County. Because inaccurate sales information can lead to incorrect conclusions about property
values, sales must be reviewed to verify the physical and financial circumstances that led to a
particular sale price. This review may include a physical inspection of the property to confirm
its physical and economic characteristics. The review may also include contact with the buyer,
seller, or other parties involved in the transaction to verify the presence and amount of unusual
financial terms that may have affected the sale price. To aid in valuing commercial and indus-
trial property using the income approach, the assessments office collects income and expense
information from commercial property owners.




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Real Estate Assessments Office                                                  2002 Annual Report



Analysis of Data
        The assessments office analyzes the information about market activity (sales, income,
etc.) and values property based on the real estate market. Properties are reassessed each year.
Therefore, each year the most recent sales, income information, and other market factors are
studied and values are re-assessed according to the current real estate market.

Application of Results
        Appraisers use several approaches to value property for assessment purposes. These ap-
proaches are discussed below.

Cost Approach
        In the cost approach, the structure value is determined by first estimating the cost to re-
place the building with a new one, and then subtracting depreciation, which makes the existing
building worth less than the cost of a new one. Depreciation can be caused by physical deterio-
ration, functional obsolescence (poor functional design), or by economic obsolescence (effects
of factors outside the property such as high traffic). The structure value is added to the land
value to produce total value by the cost approach.

Sales Comparison Approach
        The sales comparison approach is based on the principle of substitution by comparing a
property with similar properties that have sold. In this approach, several similar properties with
recent sales are selected. Each of the sale prices is adjusted for differences between the prop-
erty that sold and the subject property. This gives an indication of what each of the buyers
would likely have paid for their property had it been identical to the subject property.

Income Capitalization Approach
        The income capitalization approach produces a value indication by converting cash
flows into property value. In this approach, the effective gross income of a property is esti-
mated by considering market rents, vacancy rates, and collection losses. Estimated normal op-
erating expenses are deducted to generate an estimate of net operating income. This income is
capitalized into an estimate of value by application of an appropriate market capitalization rate.




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Real Estate Assessments Office                                                 2002 Annual Report


Performance Measurement
        The tool used to measure the accuracy of assessments is the assessment-to-sale ratio,
which is calculated by dividing the assessment by the selling price. For example, a single fam-
ily home assessed for $140,000 that sells for $160,000 has an assessment-to-sale ratio of
87.50%. This ratio is calculated for all valid sales in the County and is used to monitor the
level and equity of assessments. The median assessment-to-sale ratio is called the level of as-
sessment. The median (midpoint of arrayed ratios) is used to reduce the effect of outlying ra-
tios.
        The median level of assessment is the performance statistic published annually in the
Assessment/Sales Ratio Study by the Department of Taxation for the Commonwealth of Vir-
ginia. The median level of assessment is the most accurate indicator of a locality’s existing
assessment/sales ratio. The State calculates the 2001 level of assessment by comparing January
1, 2001 assessed values to sales occurring during calendar year 2001. Sale prices increased
during the year due to the rising real estate market and inflation. Assessments, however, do not
change during the year. On January 1, 2001, the assessments were closer to the sale prices than
the level of assessment indicates. For calendar year 2002, the median level of assessment is
estimated to be 82.36%.

        Equity of assessments is also published in the Assessment/Sales Ratio Study and indi-
cates the uniformity in real property assessment by measuring average error. The average error
is the average percentage each sale deviates from the median ratio or level of assessment. A
small average error indicates individual ratios are relatively close to the level of assessment. A
large average error indicates ratios vary greatly. For tax year 2001 sales, the estimated average
error is 8.35%.




6
Real Estate Assessments Office                                                                                         2002 Annual Report


         The following table shows the assessment level and error for 2000 and 2001. A more
detailed summary is in the Statistical Appendix, Table 10, page A-10.

                                                   Assessment Performance

                                         ----------------------Level------------------------
                                                                   -                           ----------------------Error--------------------
                                                         2000                         2001                      2000                        2001
Residential                                            88.98%                       82.33%                     6.65%                       7.22%
Apartments                                               *                            *                         *                           *
Commercial and Industrial                              85.14%                       80.92%                    24.59%                      26.83%
Undeveloped Land                                         *                            *                         *                           *
Overall                                                88.96%                       82.36%                     7.06%                       8.35%
       * Insufficient sales.
       Note: Performance data for 2000 is provided in the State Department of Taxation’s Sales Ratio Study. The 2001 report from the State
             will be published in February of 2003. Performance data for 2001 are therefore estimated by the assessments office based on 2001
             sales. For 2002, there is not enough information available to make an estimate.




Assessing New Construction
         During the year, the Real Estate Assessments Office receives information on building
permits issued by the County for new structures, additions, and remodeling of buildings. The
assessments office monitors the progress of activity indicated on the permits. New construc-
tion requires field inspections during the construction process for accurate measurements and
description. The following tables show the number and estimated dollar amount of building
permits issued by the County from FY1998 through FY2002.

                       Number of Permits Issued for Structures and Additions

                                                 FY 1998                 FY 1999               FY 2000              FY 2001                FY 2002
New Residential                                      2,412                  3,207                3,404                  4,049                    4,528
Residential Additions, etc.                          3,738                  3,789                4,241                  4,718                    5,304
New Non-Residential                                     35                     70                   61                     60                       79
Non-Residential Additions, etc.                        511                    464                  400                    485                      400
Total                                                6,696                  7,530                8,106                  9,312                   10,311
       Source: Department of Public Works
       Note: Only taxable properties are included in the counts above.




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Real Estate Assessments Office                                                                                        2002 Annual Report



       Estimated Dollar Amount of Permits Issued for Structures and Additions

                                               FY 1998               FY 1999                FY 2000               FY 2001               FY 2002
New Residential                      $     244,878,428 $         323,384,751 $          381,428,291 $         469,328,572 $         501,982,735
Residential Additions, etc.                 23,634,164            22,724,777             28,931,585            33,698,391            46,996,277
New Non-Residential*                        18,923,400           146,303,734             51,459,076           134,661,716            91,090,568
Non-Residential Additions, etc.             19,415,532            18,062,103             22,292,023            34,394,686            40,882,357
Total                                $     306,851,524 $         510,475,365 $          484,110,975 $         672,083,365 $         680,951,937

       Source: Department of Public Works
       Note: Only taxable properties are included in the amounts above.
       * The large increase in the estimated dollar amount of New Non-Residential Construction Permits for FY2001 was due to significant
         increases in office, industrial, and recreation space.


                       History of Estimated Dollar Amount of Permits Issued

        in 000's             New Residential
    $600,000
                             Residential Additions, etc.
    $500,000                 New Non-Residential
                             Non-Residential Additions, etc.
    $400,000


    $300,000


    $200,000


    $100,000


           $
                      FY 1998                 FY 1999                 FY 2000                 FY 2001                 FY 2002




Facilitating Assessment Notification and Appeal

Assessment Notification
         The Code of Virginia § 58.1-3330 requires the County to notify property owners when-
ever reassessment results in an increase in assessed value. The County has chosen to notify all
property owners of reassessment, even if there was a reduction or no change in the value.


8
Real Estate Assessments Office                                               2002 Annual Report


This notification takes place in March of each year and advises the taxpayer of the previous
year’s assessment and the current assessment. (See Addendum A, page B-3 for a sample notice
of reassessment.)

Appeal Procedures
        Taxpayers who are uncertain about the accuracy of their assessment on the basis of
value or equity with other properties can request a review of their property value. The County
appraiser considers market information relative to the property and information provided by the
taxpayer. If this information shows the assessed value should be changed, the appraiser makes
the necessary adjustment. If the evidence does not support a change, the appraiser explains the
reasons for sustaining the assessment.

        Taxpayers may also appeal to the Board of Equalization (BOE) or Circuit Court. Tax-
payers are not required to appeal to the assessments office before appealing to the BOE or Cir-
cuit Court. The BOE is comprised of eight County taxpayers and is established by the Board of
County Supervisors to render an independent third party opinion in cases of disagreement be-
tween the taxpayer and the assessing official. Although the BOE is a quasi-judicial board,
there is no application fee and an attorney is not required.

Appeal Adjustments
        As a result of an appeal to the Real Estate Assessments Office, the BOE, or Circuit
Court, an assessment may be revised. Developers may appeal many residential lots at the same
time and each lot appealed is counted separately. Upon review, the assessments office may
change any or all of the lot values. Since each lot is counted separately, the number of appeals
and the number changed by the assessor may be large and may fluctuate substantially from year
to year. Some properties are appealed to both the assessments office and to the BOE. In tax
year 2001, no cases were appealed in Circuit Court. There was one lawsuit resolved as a result
of a negotiated settlement outside of court. As of June 30, 2002, there are nine court cases
pending.




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Real Estate Assessments Office                                                       2002 Annual Report


        The table below shows appeal activity for tax year 1997 to tax year 2001. A history of
appeals and the resulting adjustments can be found in Table 3 of the Statistical Appendix, page
A-3.
                                             Summary of Appeal Activity
                                                       TY 1997   TY 1998   TY 1999      TY 2000           TY 2001
       Appeals to Assessor                                 616       376       736          624               352
       Changed by Assessor                                 317       292       373          517               214
       % Changed*                                          51%       78%       51%          83%               61%
       Appeals to BOE                                     615       334       126           141               85
       Changed by BOE                                      42        42        50            18                4
       % Changed*                                          7%       13%       40%           13%               5%
       Appeals to Court                                     8         2         2             1                0
       Total Appeals                                    1,239       712       864           766              437
       Appeals as % of Total Parcels                    1.28%     0.74%     0.89%         0.76%            0.43%
             * May have been decreased or increased.




Administering Real Estate Tax Relief Programs
        Prince William County provides relief from real estate taxes and personal property taxes
for those who are elderly or disabled and meet specified income and net worth requirements.
Certain land uses may also qualify for tax relief to encourage preservation of agriculture, for-
estry, and open space. Lastly, older properties which undergo substantial renovations can re-
ceive a partial tax exemption for the increase in taxes caused by the renovation.




Tax Relief for the Elderly and Disabled


        Elderly or disabled persons are eligible for relief from real estate taxes on their home
and a home site of up to one acre if they meet the following criteria:

     • Are over 65 years of age on or before December 31, or are totally and permanently dis-
       abled.
     • Have less than $195,000 in total assets (residence and up to one acre excluded).
     • Do not exceed the maximum combined income requirements set forth in local ordi-
       nances.




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Real Estate Assessments Office                                                    2002 Annual Report


    • The assessments office provides information to taxpayers about the tax relief program in
      the following ways:

        - The notice of reassessment is sent to all property owners in March and contains the
              criteria for tax relief and the deadline for filing (see Addendum A, page B-3).

        - A tax relief brochure (in both English and Spanish) containing specific information
              regarding eligibility and application is available in the assessments office and vari-
              ous other County agencies (see Addendum C, page B-7), including Finance Depart-
              ment counters and senior citizens' centers.

        - Tax relief information is available on the internet at
              http://www.pwcgov.org/finance/taxadmin/0_txrelov.htm.

        The following table summarizes eligibility type (exemption or deferral) and the percent-
age deferral of 2002 taxes for different ranges of income. The Board of County Supervisors
establishes the income ranges based on the Housing and Urban Development (HUD) low in-
come limit. For 2002, the limit is $42,000 and each range is determined using a percentage of
that value.

                                           2002 Tax Relief

                        Percent of HUD              Combined            Percentage of
                       Low Income Limit               Income             Tax Relieved
                       $0-$27,500 (base)            $0-$27,500         100% Exemption
                           66%-85%                 27,501-35,700        100% Deferred
                           85%-90%                 35,701-37,800         75% Deferred
                           90%-95%                 37,801-39,900         50% Deferred
                          95%-100%                 39,901-42,000        25% Deferred



        Each applicant must file an application for tax relief with the Real Estate Assessments
Office each year between January l and April 15. The County sends renewal applications to
those who received tax relief the preceding year. Individuals who do not receive an application
may request one by calling the Real Estate Assessments Office.          Applications are also avail-
able at: http://www.pwcgov.org/finance/taxadmin/0_txrelief.htm.




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Real Estate Assessments Office                                                                                        2002 Annual Report


        A summary of real estate tax relief for the elderly and disabled is shown in the following
table. Additional historical information about real estate tax relief is provided in the Statistical
Appendix, Table 2, page A-3.

                        Summary of Tax Relief for the Elderly and Disabled*
Real Estate                                        1998                   1999                  2000                   2001                  2002
  Households Exempted                              682                    731                   712                    864                   827
  Households Deferred**                            211                    188                   204                    131                   139
  Total #. of Households                           893                    919                   916                    995                   966
  Amount Exempted                    $         905,620 $            1,010,781 $             998,470 $            1,176,134 $           1,439,894
  Amount Deferred                              274,127                254,824               297,292                207,490               257,400
  Total Amount Relieved              $       1,179,747 $            1,265,605 $           1,295,762 $            1,383,624 $           1,697,294

 Ave. Amount Exempted                $            1,328     $            1,383    $            1,402    $             1,361    $             1,741
 Ave. Amount Deferred                $            1,299     $            1,355    $            1,457    $             1,584    $             1,852
Personal Property
  Approved Personal Property
  Applicants                               not available                  1,203                 1,234                 1,217                  1,223

       * Taxpayers may qualify for real estate tax relief, personal property, or both.
       ** Because of an increase in the income range for tax exemption, a number of persons who previously had their taxes deferred quali-
           fied for exemption in 2001.
      Note: In 2002, Multiple qualifying properties owned by one taxpayer were eliminated and counted as one taxpayer.




Tax Relief Based on Use Value Assessment
        The Prince William County Use Value Assessment Program provides tax relief to cer-
tain agricultural, forestal, horticultural, and open space property owners. The program allows
qualifying land to be taxed according to its use value rather than its market value. The State
Land Evaluation Advisory Committee suggests values for land in the program. These values
range from $20 per acre to $330 per acre, depending on the type of land.
        The tax difference is deferred, but not automatically forgiven. The deferred tax remains
payable for six years. When property owners of land in the Use Value Assessment Program
either change the use to a non-qualifying use or re-zone their property to a more intensive zon-
ing, they must pay taxes (including interest) on the difference between the property’s market
value and its use value for the current year and the five most recent complete tax years. This
tax is called a “rollback tax.” (See “Undeveloped Land,” page 24 for more information.)




12
Real Estate Assessments Office                                                  2002 Annual Report


Partial Tax Exemption for Rehabilitated Real Estate
        An ordinance enacting a partial tax exemption for real estate that is substantially re-
paired, rehabilitated, or replaced became effective on January 1, 1998. The program is in-
tended to encourage property owners to improve the condition and appearance of their proper-
ties. All improved property types are eligible for the exemption. The rehabilitation or re-
placement structure must increase the value of the original structure by at least 25% to qualify
for the exemption. Minimum age and maximum size increase requirements depending on
property type must also be met. Applications and information are available on the Internet:
http://www.pwcgov.org/finance/taxadmin/0_txrehprog.htm

        The tax exemption for properties in the rehabilitation program is applied over a fifteen-
year period. The total tax saving is equal to 100% of the exemption each year for the first ten
years. Over the next five years the tax savings is reduced and the exemption is phased out as
follows: 80% in year 11, 60% in year 12, 40% in year 13, 20% in year 14, and 0% in year 5.

        The tax exemption is transferable to a new property owner during the program period.

        The following table provides information about properties currently receiving partial tax
exemption.


                 Summary of Tax Exemption for Rehabilitated Real Estate
                                              Date Exemption      Tax Savings
                          Property Type               Began          for 2002
                          Residential                  1999            $2,988
                          Commercial                   2000               334
                          Multifamily                  2000             3,546
                          Commercial                   2000             4,086
                          Commercial                   2000            59,990
                          Residential                  2001             1,910
                          Residential                  2001               385
                          Residential                  2001               458
                          Commercial                   2001             2,647
                          Residential                  2002               339
                          Residential                  2002             1,451

                                             Total Tax Savings        $78,133



                                                                                                     13
Real Estate Assessments Office                                                 2002 Annual Report




Providing Customer Service
        The Real Estate Assessments Office provides services to all taxpayers in the form of ac-
curate, equitable assessments. In addition, each year the assessments office provides direct as-
sistance to thousands of citizens on an individual basis. One of the most direct forms of cus-
tomer service is responding to appeals by taxpayers who are not certain their assessment is cor-
rect. Taxpayer appeals are explained in the “Appeal Procedures” section, page 9. Several
other direct customer services provided by the assessments office are explained below.

Walk-in Customers
        The assessments office has two main types of walk-in customers: taxpayers and real es-
tate professionals. When taxpayers come to the Real Estate Assessments Office for assistance
with understanding and applying for tax relief programs, the office staff works directly with
them. The assessments office also has a brochure about tax relief for rehabilitated properties
(see Addendum B, page B-5) and tax relief for the elderly and disabled (see Addendum C, page
B-7). Most appraisers and real estate agents use the assessment office’s sales lists, microfiche
copies of tax records, and on-line access to the assessment database for research purposes.

Telephone Requests From Real Estate Professionals
        While assessment information is available at the Real Estate Assessments Office to any
citizen free of charge, many real estate professionals including brokers, agents, attorneys, ap-
praisers, and settlement companies prefer to have the assessments office do research for them.
The assessments office handled these business services on a fee-for-service plan through a 900
telephone number at a charge of $2.00 per minute. Effective July 2001, the Real Estate As-
sessments Office eliminated the 900 telephone number. The Real Estate Assessments Office
and Taxpayer Services Administration provides this research over the phone free of charge.


Telephone Requests From Citizens and Public Agencies
        Many citizens call for information about the method of assessment used in valuing their
property or about tax due dates and other general facts. These, along with assessment appeals
and calls from other public agencies, are handled as administrative calls.




14
Real Estate Assessments Office                                                                                                   2002 Annual Report


Internet Access
           Real estate assessment information is available free-of-charge on the County’s website.
Ownership information, physical descriptions, sales history, and assessment history for each
property in the County are provided on the website at http://www.pwcgov.org/realestate. A
summary of customer service activity is shown in the following table.


                                                  Summary of Customer Service
                                                      FY1998                  FY1999                  FY2000                  FY2001                   FY2002
Walk-in Customers                                       2,581                   2,470                   1,316                   1,159                    1,064
Real Estate Business Calls                             16,216                  17,524                   9,311                   8,127                        *
Citizen/Public Agency Calls                            23,657                  13,956                  12,111                  15,764                   19,255
Internet User Sessions                                   N/A                     N/A                  160,859                 275,757                  401,272
Total                                                  42,454                  33,950                 183,597                 300,807                  421,591
* 900 number was eliminated as explained on the previous page.
A user session is a session of activity (all hits) for one user of the website. By default, a user session is terminated when a user is inactive for
more than thirty minutes.


           Internet activity has increased 46% from FY2001 to FY2002. The County’s internet sta-
tistics reports consistently demonstrate that Real Estate Assessments Office has the highest
number of views, a count of hits to pages, and visitor sessions within the County’s website.




                                                                                                                                                           15
Real Estate Assessments Office                                                                                            2002 Annual Report




                                             REAL ESTATE VALUES
          For the purpose of comparing and analyzing real estate assessments, property in the
County has been divided into several categories. The following table compares assessed values
for each type of property for tax years 2001 and 2002. Landbook values are assessments as of
January 1. State-valued public service assessments and supplemental assessments are added to
the landbook to form the total tax base for the County. The assessed values of tax-exempt
properties are added to taxable properties to show the total assessed value of the County.

                                              2001 and 2002 Assessed Values*
                                                                        2001                           2002                        Percentage
                                                              Assessed Value                 Assessed Value                           Change
     Taxable Landbook
       Residential                                     $     13,733,685,800 $ 17,265,443,000                                               25.72
       Apartments                                               749,986,200      892,952,600                                               19.06
       Commercial and Industrial                              2,760,787,100    3,115,383,400                                               12.84
       Undeveloped Land                                         336,111,300      249,277,100                                              (25.83)
      Total Taxable Landbook                                 17,580,570,400   21,523,056,100                                               22.43
     Supplements (1)
       Residential                                                261,739,000                    221,590,300
       Apartments                                                  20,916,000                     25,500,000
       Commercial and Industrial                                   37,090,600                     23,656,900
       Undeveloped Land                                             1,418,700                      3,615,200
         Total Supplements                                        321,164,300                    274,362,400                              (14.57)
     Public Service (2)                                           887,525,905                    902,412,445                                 1.68
        Total Tax Base                                    18,789,260,605                  22,699,830,945                                   20.81
     Tax Exempt                                            1,529,680,800                   1,646,500,800                                    7.64
     Deferred Use Value (3)                                  242,619,200                     270,244,900                                   11.39
        Total County Value                              $ 20,561,560,605                $ 24,616,576,645                                   19.72

        *2001 and 2002 Assessed Values form the basis for FY2002 and FY2003 revenues, respectively.
        (1) Supplements are taxes billed for construction completed during the year and rollback taxes for properties that were eliminated from
             the use value program due to re-zoning or development. Supplements 1, 2 and 3 for 2002 are not currently available. The values
             shown are estimated.
        (2) Public Service assessments are received by the County from the State in September of each year.
        (3) Deferred use value is the difference between the market value and use value of properties in the Use Value Assessment Program.




16
Real Estate Assessments Office                                                2002 Annual Report



                        Composition of Tax Base—2002 Assessed Values

                                    Public Service
                                          4%          Apartments
                                                         4%         Commercial
                                                                      14%


                                 Residential                                 Undeveloped
                                   77%                                          Land
                                                                                 1%




Landbook Values: Growth and Appreciation
        The 2002 landbook contains assessed values for all properties in the County as of Janu-
ary 1, 2002. The following categories of assessments are not included in the landbook:

    • Assessments for state-valued public service properties (these are received from the State
      in September each year)

    • Supplemental assessments (these are made after January 1, 2002)

        Each year, changes in landbook values for each category can be divided into two main
influences: growth and appreciation. Changes in value due to growth result from the construc-
tion of new buildings and from land subdivisions. As the table on the following page shows,
the residential, apartments, and commercial categories experienced positive growth. Subdivi-
sions and reclassification caused negative growth in undeveloped land.
        Changes in value due to appreciation are the result of changes in real estate market con-
ditions, changes in property descriptions, physical deterioration, renovations, and additions.
For the 2002 landbook, these factors caused existing residential, commercial, apartment proper-
ties, and undeveloped land to increase in value. Overall, the landbook value increased 7.12%



                                                                                                   17
Real Estate Assessments Office                                                          2002 Annual Report


for growth and 15.30% for appreciation, resulting in a total increase of 13.31% in the 2002
landbook value.

        The table below shows the 2001 to 2002 landbook changes attributable to growth and
appreciation. Detailed and historical data are in the Statistical Appendix page A-11.

                           Changes in Landbook Values—2001 to 2002

                                                     Percent             Percent                Total
                                                     Growth          Appreciation     Percent Change
      Residential                                       8.25               17.47                25.72
      Apartments                                        8.28               10.78                19.06
      Commercial/Industrial                             6.20                6.65                12.84
      Undeveloped Land                                (33.82)               7.99               (25.83)
      Total Landbook                                    7.12               15.30                22.43


Residential
        The residential category includes improved and unimproved parcels zoned for residen-
tial use except multifamily rental apartment units. The improved parcels in this category are
mostly single family homes, townhouses, and condominiums. Total landbook value for resi-
dential properties increased 25.72% between 2001 and 2002. Growth caused an 8.25% in-
crease in the residential assessed value. There were 4,043 new residential units with an aver-
age value of $287,903 added to the tax base for tax year 2002. Appreciation caused the re-
maining 17.47% increase in the residential landbook. The table below shows the landbook
value of residential property for the last three years and the following page shows the composi-
tion of the residential category, the composition of new construction, and the average assessed
values of residential properties.

                         Residential Landbook Assessments (Tax Years)
                                  1998              1999              2000              2001              2002
Landbook Values        $10,251,508,500   $10,930,281,700   $12,025,990,000   $13,733,685,800   $17,265,443,000




18
Real Estate Assessments Office                                                                                         2002 Annual Report



                             Types of Residential Property--2002 Landbook


                                                                 2002             2002                             Percent of Total
                                                        Parcel Count   Landbook Value                                  Residential
      Single Family                                            56,683 $ 12,708,710,800                                       73.61
      Townhouses                                               25,362    3,378,644,200                                       19.57
      Condominiums                                              5,127      469,096,600                                        2.72
      Vacant Land                                              13,522      690,354,200                                        4.00
      Other                                                     1,866       18,637,200                                        0.11
      Total Resid. Landbook                                      102,560         $ 17,265,443,000                                100.00

           Notes: This table is not a count of dwelling units in the County. Some parcels in the Single Family category may have more than
           one dwelling unit. New homes that were partially built as of January 1, 2002 are counted as if they were complete, although their
           value is discounted depending on the level of completion. Tax-exempt properties and apartment units are not included in this ta-
           ble.



Types of Residential Property as Percentages of 2002 Residential Landbook Value
                                                                  Vacant Land
                                    Condominiums
                                                                      4%
                                        3%

            Townhouses
               20%

                                                                                 Single Family
                                                                                     73%




        Of the 4,043 new homes built in the County during 2001, 78% were single-family
homes and townhouses assessed at over $200,000 for tax year 2002. The average assessment
of all residential new construction increased from $232,557 in 2001 to $287,903 in 2002. The
following table shows the breakdown of new homes by type and value.




                                                                                                                                               19
Real Estate Assessments Office                                                                                         2002 Annual Report




                                       Residential New Construction by Type
                        New Units Over $200,000                   New Units Under $200,000                             All New Units
                          Count              Average                 Count               Average                 Count               Average
                                            Assessment                                  Assessment                                  Assessment
 Single Family                2,901 $          325,823              158 $                       190,481                3,059    $          318,832
 Townhouses                     255            259,535              686                         167,995                  941               192,801
 Condominiums                     8            208,950               35                         159,585                   43               168,769
 Total Residential            3,164            320,467              879                         171,702                4,043               287,903
Average Residential Real Estate Tax for New Homes (Tax Rate = $1.23 per $100)                                                   $            3,541

        Note: This table includes residential homes completed during 2001. Homes partially built as of January 1, 2002 have been excluded.



        As of January 1, 2002, all types of existing residential properties experienced increases
in average assessed value. Listed below are the average assessments of residential dwelling
types for the last five years.



                                  Average Residential Assessments by Type
                                            1998                  1999                 2000                   2001                    2002
Single Family Detached                      $153,564              $160,347             $170,719                $189,567                $224,474
Townhouses                                   $98,953               $99,785             $103,867                $112,962                $133,259
Condominiums                                 $73,416               $73,264              $74,778                 $78,672                 $91,495
All Types                                   $132,435              $136,841             $144,979                $160,116                $189,946

        Note: These averages do not include tax-exempt properties, vacant lots, residences on commercial or agricultural land, parcels with more than
        one residence, or houses that were partially complete as of January 1, 2002.




20
Real Estate Assessments Office                                                2002 Annual Report



                  Comparison of Average Residential Assessments by Type


 $250,000
                                            1998       1999          2000      2001        2002
 $200,000


 $150,000


 $100,000


   $50,000


           $0
                       Single Family     Townhouses           Condominiums             All Types
                         Detached

        New houses can influence the overall average assessed value of all homes positively or
negatively, depending on the size, quality, and type of new construction. In general, new
houses are more expensive than typical existing houses in the County and therefore cause an
increase in the overall average assessed value. As a result, even if market factors or physical
deterioration cause a decline in the value of existing properties, construction of new units may
cause the overall average value to increase. In recent years, there has been a general upward
trend of average values in residential properties in the County. A ten-year history of average
values is included in the Statistical Appendix, Table 6, page A-5.

Apartments
        Apartments include residential rental communities containing six or more rental units as
well as vacant land zoned for apartments. The unit count for 2002 including the small apart-
ment complexes is 14,296, reflecting growth of approximately 4%. The average growth for the
previous seven years is approximately 2.5%.




                                                                                                   21
Real Estate Assessments Office                                                                                            2002 Annual Report


        The assessed value of apartments increased 13.8% from 2001 to 2002. The average ap-
preciation for the previous seven years is approximately 11%. Higher apartment rents and
lower vacancies countywide contributed to the increase. The following table is a summary of
apartment information for the last five years.
                                           Apartment Summary (Tax Years)

                                                      1998                   1999                   2000                    2001                 2002
Number of Apartment Units                         12,218                 13,237                  13,237                 13,725                 14,296
Average Assessment per Unit                      $43,358                $46,386                 $47,943                $53,561                $60,996

Improved Parcels Only                 $     529,742,302 $          614,015,100       $     634,616,700 $          735,126,900      $     871,991,800
Undeveloped Apartment Land                   82,970,798             28,406,900              28,624,100             14,859,300             16,598,100
Total Landbook Values                 $     612,713,100 $          642,422,000       $     663,240,800 $          749,986,200      $     892,952,600

      Notes: Tax-exempt properties are not included in this table.
             The unit count increased in 2001 as a result of new units as well as reclassification of several properties into the apartment
             category.




Commercial and Industrial

Locally-Valued Properties
        Locally-valued commercial and industrial properties consist of all non-residential uses
such as retail, office, hotel, industrial, warehouse, and vacant parcels with commercial or indus-
trial zoning. Properties owned by public service companies such as utility companies and rail-
roads are not locally-assessed.

        Locally assessed commercial and industrial values increased 12.84% from 2001 to 2002,
as compared to a 12.76% from 2000 to 2001. New construction caused a 6.20% increase in the
commercial tax base. There were 1,332,082 square feet of commercial space added to the tax
base for tax year 2002. The largest amount of growth occurred within the office and retail cate-
gories, which together account for 68% of new commercial space.

        Existing commercial property reassessment caused 6.65% appreciation in landbook
value. Industrial and hotel properties had the highest rate of appreciation while office, retail,
and vacant land showed moderate increases. Existing technology services properties remained
stable. The table below contains landbook assessment information about locally assessed
commercial and industrial properties.



22
Real Estate Assessments Office                                                                                 2002 Annual Report



            Locally-Valued Commercial/Industrial Assessments* (Tax Years)
                                              1998                    1999                     2000             2001             2002
Landbook Values                     $2,153,820,300          $2,232,907,300           $2,448,482,400   $2,760,787,100   $3,115,383,400
        *State-valued public service properties are not included in this category.



State-Valued Public Service Properties
        State-valued public service properties are assessed by the State Corporation Commission
(SCC) and the Virginia Department of Taxation. The SCC assesses all telecommunications
companies, water corporations, intrastate gas pipeline distribution companies, and electric light
and power corporations. The Virginia Department of Taxation assesses railroads and interstate
pipeline transmission companies. The County receives these assessed values in September of
each year and then bills and collects taxes. Since the assessments are not available when first
half tax bills are due on July 15, the first half taxes are based on the prior year assessment and
adjusted on the second half tax bill. Table 9 and Table 11-A show the total assessed values for
Public Service properties.

        The following table and chart compare 2002 landbook values of different types of lo-
cally and state-valued properties.

                                   Types of Commercial/Industrial Property
                                               2002 Landbook

                                                                   Number of                       2002       Percent of Total
                                                                     Parcels                   Landbook      Commercial/Ind.
      Locally Assessed
        Retail                                                               899          1,383,765,800                   34.57
        Offices                                                              805            316,420,000                    7.90
        Industrial                                                           388            407,750,700                   10.19
        Technology Services                                                    4            150,352,900                    3.76
        Other                                                                739            454,153,400                   11.35
        Vacant Land                                                        1,227            402,940,600                   10.07
      Total Locally Assessed                                               4,062          3,115,383,400                   77.83
      Total State Valued                                                                  887,525,905 *                   22.17
      Total Commercial/Industrial                                                      $ 4,002,909,305                  100.00


      *estimated.




                                                                                                                                    23
Real Estate Assessments Office                                                                     2002 Annual Report



                         State-Valued Public Service Assessments (Tax Years)
                                                1998             1999             2000           2001                 2002
Assessed Value                          $866,813,779     $871,897,315     $877,768,069   $887,525,905        $887,525,905 *

      *estimated.


                    Comparison of Types of Commercial/Industrial Property
                                      2002 Landbook
                         State Valued
                             22%
                                                                                                        Retail
                                                                                                        35%




                 Other
                 11%

                         Vacant Land                                                     Offices
                            10% Technology Services                     Industrial        8%
                                       4%                                 10%


Undeveloped Land
        Undeveloped land consists of large acreage tracts of farm land and other undeveloped
properties greater than twenty acres. From 2001 to 2002, there was a 25% decrease compared
to an 11% decrease from 2000 to 2001, and a 9% decrease from 1999 to 2000. Decreases are
partially due to reductions in use value assessments determined by the State Land Evaluation
Advisory Council (SLEAC). Re-zonings and land development caused some parcels to be re-
classified, further reducing the value of this category. The following table reflects the land-
book values of this category for 1998 through 2002.

                               Undeveloped Land Assessments (Tax Years)
                                            1998              1999               2000              2001                 2002
Landbook Values                   $433,959,900         $412,250,800     $377,675,900     $336,111,300            $249,277,100



        Some of these undeveloped parcels qualify for the Use Value Assessment Program and
are not taxed at market value. The State Land Evaluation Advisory Council recommends the
use value assessments used by the County for property in the program. These values typically


24
Real Estate Assessments Office                                                                                   2002 Annual Report


range from $20 to $330 per acre (see “Tax Relief Based on Use Value Assessment,” page 12
for more information).

         There are 840 parcels currently in the Use Value Assessment Program. The use value
assessment for the land portion of these parcels is $37,426,100 while the assessment at market
value is $307,671,100. (Buildings do not have use value assessments and are therefore as-
sessed at full market value.) The estimated amount of revenue the County will defer for tax
year 2002 is $3,324,012. The table below compares use values from 1998 and 2002. The use
value for properties in the program decreased 6.10% from 2000 to 2001 due to value reductions
made by SLEAC and the removal of several properties from the program. For a more complete
history, see the Statistical Appendix, Table 5, page A-4.

                                 Use Value Assessment Summary (Tax Years)
                                                          1998              1999              2000                2001                 2002
  Number of Acres                                   49,481                49,853            49,451              58,397               45,416
  Number of Parcels                                    841                   867               862                 856                  840
  Market Value Assessment               $     293,863,600 $          299,518,000 $      292,415,900 $       280,506,300 $       307,671,000
  Deferred Assessment                        (246,694,700)          (253,753,100)      (252,068,600)       (242,619,200)       (270,244,900)
  Use Value Assessment                  $      47,168,900 $           45,764,900   $    40,347,300 $         37,887,100   $      37,426,100

  Deferred Tax                          $       (3,355,048) $          (3,451,042) $     (3,377,719) $       (3,154,050) $       (3,324,012)
  Rollback Taxes*                                  356,859                223,779           366,864           1,667,785             600,000
  Net Tax Deferred                      $       (2,998,189) $          (3,227,264) $     (3,010,856) $       (1,486,265) $       (2,724,012)
     *The 2002 value for rollback taxes is an estimate.




Supplemental Assessments
         Supplemental assessments include prorated assessments on newly completed construc-
tion and prorated assessments for properties which become taxable during the year. When con-
struction is completed during the year, the increase in assessed value between the January 1 as-
sessment and the completed value is prorated based on the number of months the property is
complete and fit for occupancy. The owner of the property receives a supplemental tax bill for
the prorated increased value.

                                       Supplemental Assessments (Tax Years)
                                                 1998                   1999               2000                 2001                2002*
Assessed Value                         $164,949,100              $202,544,400      $255,571,900          $321,164,300         $274,362,400
         *Supplemental assessments for 2002 are estimated.




                                                                                                                                        25
 Real Estate Assessments Office                                                                                        2002 Annual Report



 Tax-Exempt Properties
         The Code of Virginia § 58.1-3200 requires the County to place an assessment on all
 property except road rights-of-way and public service properties, which are valued by the State.
 Therefore, the County is required to assess all tax-exempt properties. For 2002, there were
 1,773 tax-exempt parcels consisting of federal, state, and county-owned properties, as well as
 properties owned by churches, schools, and other tax-exempt organizations.

         The total assessed value of exempt properties for 2002 is $1,646,500,800 and the total
 amount of taxes exempted is $20,251,960. A summary of the assessed values of tax-exempt
 properties by category for 1998 through 2002 and a chart showing the relative proportion of
 each category of tax-exempt properties for 2002 follows.

                       Assessed Values of Tax-Exempt Properties (Tax Years)

                                                 1998                       1999                      2000                      2001                    2002
Federal                         $      468,760,100 $              469,015,600 $             469,239,800 $             479,848,400 $              530,630,700
State                                   86,101,700                 89,219,600                87,615,600                90,327,900                 99,841,500
Regional                                16,255,900                 16,277,600                16,453,200                17,041,000                 18,014,400
Local                                  702,951,000                704,884,200               700,969,800               734,630,600                780,837,100
Religious                              126,781,700                126,159,900               129,765,900               144,111,800                151,009,400
Charitable                              23,100,500                 22,889,500                23,141,400                23,412,700                 25,748,900
Educational                              9,338,900                 10,315,600                10,334,200                10,660,600                 11,578,900
Other                                    4,946,300                  5,208,900                28,890,500                29,647,800                 28,839,900
Total Tax Exempt                $    1,438,236,100 $           1,443,970,900 $            1,466,410,400 $           1,529,680,800 $             1,646,500,800
% of Total County Value                      8.91%                     8.50%                      7.13%                     6.21%                       6.69%


         Note: Potomac Hospital was reclassified from the “Local” category to the “Other” category for tax year 2000, causing a significant
               increase in the value of the “Other” category. New construction and reassessment of County-owned properties largely offset the
               decrease in the “Local” category.




 26
Real Estate Assessments Office                                                 2002 Annual Report




                        Types of Tax-Exempt Properties—Tax Year 2002


                                              Educational   Other
            Religious            Charitable      1%          2%        Federal
              9%                    2%
                                                                        32%




                                                                               State
                                                                                6%
                Local
                47%                                                 Regional
                                                                      1%




                                                                                                    27
Statistical Appendix




                       A-1
Real Estate Assessments Office                                         2002 Annual Report




                                 This page intentionally left blank.




A-2
                                                     Table 1: History of Property Record Maintenance Activity
                                   FY 1993             FY 1994        FY 1995          FY 1996      FY 1997      FY 1998       FY 1999     FY 2000     FY 2001       FY 2002
Wills                                   381                 350            394              428          450          473           520         550         580           408
New Lots                              1,253               3,366          2,916            2,178        2,238        2,945         2,130       3,189       3,867         4,779
Deeds                                 8,481               8,964          8,313            8,710        9,631      10,438        12,120      12,941      16,100        20,317
Transfers                           *                   *              *                *            *            14,381        14,243      14,831      16,652        20,239
  *Data for transfers not tracked prior to FY1998.


                                                     Table 2: History of Tax Relief for the Elderly and Disabled
                                  FY 1993              FY 1994       FY 1995          FY 1996      FY 1997      FY 1998        FY 1999     FY 2000      FY 2001     FY 2002
Number Exempted                       681                  619           679              737          730          682            731         712           864         827
Amount Exempted                  $807,108             $811,137      $912,509         $920,860     $952,411     $905,620     $1,010,781    $998,470    $1,176,134 $ 1,439,894
Number Deferred                        72                   81           135              154          163          211            188         204           131         139
Amount Deferred                   $88,338              $88,228      $163,524         $181,398     $210,384     $274,127       $254,824     297,292       207,490     257,400


                                                                    Table 3: History of Appeals Activity
                                  TY 1992              TY 1993       TY 1994          TY 1995      TY 1996      TY 1997       TY 1998     TY 1999       TY 2000      TY 2001
Appeals to Assessor                   832                  772           603               490          835          616           376         736           624          352
Changed by Assessor*                  545                  441           437               269          607          317           292         373           517          214
% Changed                             66%                  57%           72%              55%          73%          51%           78%         51%           83%          61%
Appeals to BOE                        690                1,127           494               641          415          615           334         126           141           85
Changed by BOE*                       259                  301           168               229          189           42            42          50            18            4
% Changed                             38%                  27%           34%              36%          46%           7%           13%         40%           13%           5%
Appeals to Court                       23                   43            18                 7           16            8             2           2             1            0
Total                                1,545                1,942         1,115            1,138        1,266        1,239           712         864           766          437
  * May have been decreased or increased.
                                                                       Table 4: History of Adjustments
                                   TY 1992              TY 1993       TY 1994          TY 1995       TY 1996      TY 1997       TY 1998     TY 1999     TY 2000       TY 2001
Number Adjusted                        780                1,246           800            1,055           725          385           416         808         858           746
Tax Amt. Reduced                $1,187,221           $1,257,546    $1,260,667       $1,463,971    $1,332,849   $1,034,111    $1,244,595    $829,138    $707,867    $1,258,958
  Note: These numbers include all adjustments as a result of appeals and highway takings.
A-3
A-4



                                                          Table 5: Use Value Assessment Summary


              # of                      Market Value   Use Value      Assessment   Percent    Tax Rate       Tax     Rollback Net Annual
Year         Parcels       Acres         Assessment    Assessment     Reduction   Reduction   per $100    Reduction   Taxes*   Deferral
1993            883        53,346        381,613,100     49,787,500   331,825,600     86.95        1.36    4,512,828   255,108 4,257,720
1994            891        53,301        339,645,200     50,133,800   289,511,400     85.24        1.36    3,937,355   291,060 3,646,295
1995            881        53,049        320,012,900     46,461,400   273,551,500     85.48        1.36    3,720,300   288,028 3,432,272
1996            885        52,929        318,738,300     50,737,900   268,000,400     84.08        1.36    3,644,805   389,541 3,255,264
1997            849        50,796        302,470,900     47,371,000   255,099,900     84.34        1.36    3,469,359 1,221,495 2,247,864
1998            841        49,481        293,863,600     47,168,900   246,694,700     83.95        1.36    3,355,048   356,859 2,998,189
1999            867        49,853        299,518,000     45,764,900   253,753,100     84.72        1.36    3,451,042   223,779 3,227,264
2000            862        49,451        292,415,900     40,347,300   252,068,600     86.20        1.34    3,377,719   366,864 3,010,856
2001            856        58,397        280,506,300     37,887,100   242,619,200     86.49        1.30    3,154,050 1,667,785 1,486,265
2002            840        45,416        307,671,000     37,426,100   270,244,900     87.84        1.23    3,324,012   600,000 2,724,012
      *2002 rollback taxes are estimated.
                                                   Table 6: Average Assessed Value History of Residential Property
                                        Single Family                                                                                     All                    Percent           Total Number
                      Year              and Duplexes                Townhouses    Condominiums                                     Residential                   Change              of Units*
                      2002                   $224,474                   $133,259        $91,495                                     $189,946                      18.63%              86,269
                      2001                    189,567                    112,962         78,672                                      160,116                      10.44%              82,273
                      2000                    170,719                     103,867        74,778                                      144,979                       5.95%              79,097
                      1999                    160,347                     99,785         73,264                                      136,841                       3.33%              76,009
                      1998                    153,564                     98,953         73,416                                      132,435                       2.01%              73,641
                      1997                    149,867                     97,802         72,319                                      129,831                       0.88%              71,379
                      1996                    147,836                     97,399         72,307                                      128,700                       0.49%              69,392
                      1995                    146,752                     96,179         66,148                                      128,073                       0.49%              69,515
                      1994                    144,979                     97,400         73,261                                      127,447                       1.23%              67,729
                      1993                    141,319                     98,995         74,996                                      125,901                      -1.52%              65,955
      * The units included in this table are all residential properties in the Single Family Detached, Duplex, Townhouse and Condominium categories. Houses on commercially zoned or agricultural parcels and
        houses that were partially complete as of January 1, 2002 are not included. Tax exempt properties and parcels owned by homeowners associations are also not included.
        The difference between the unit counts in successive years does not always equal the number of new houses added. During reassessment, properties are often reclassified, causing the unit counts to be slightly
        inconsistent.
                                                                        Average Assessed Value—All Residential
                                                                                      1993-2002
                                     $200,000                                                                                                                                      20%

                                     $180,000                            Average Overall Assessment                             % Change
                                     $160,000                                                                                                                                      15%

                                     $140,000

                                     $120,000                                                                                                                                      10%

                                     $100,000

                                      $80,000                                                                                                                                      5%

                                      $60,000

                                      $40,000                                                                                                                                      0%

                                      $20,000
A-5




                                              $0                                                                                                                                   -5%
                                                       1993         1994        1995        1996         1997        1998         1999        2000        2001         2002
A-6



                                        Table 7: Assessed Values and Estimated Market Values


                    --------------Residential--------------           --------------Apartments--------------             -------------Commercial-------------
                                                     Estimated                                          Estimated                                      Estimated
                      Assessed                        Market          Assessed                           Market          Assessed                       Market
         Year         Value (1)        Ratio (2)       Value            Value            Ratio            Value            Value          Ratio          Value
         1992          8,602,192,270       95.43%     9,014,458,397     509,531,300           95.50%      533,540,628     2,286,505,527       90.60%    2,523,736,785
         1993          8,606,600,138       93.04%     9,250,118,987     445,593,600           93.00%      479,132,903     2,103,214,900       68.50%    3,070,386,715
         1994          8,803,946,984       93.17%     9,449,674,759     500,795,500           93.20%      537,334,227     1,951,947,452       93.80%    2,080,967,433
         1995          9,188,858,123       93.66%     9,810,444,737     508,437,600           93.70%      542,622,839     1,895,893,800       85.10%    2,227,842,303
         1996          9,485,586,185       93.75%    10,118,012,026     529,799,000           93.80%      564,817,697     1,953,576,715       89.23%    2,189,372,089
         1997          9,860,168,457       94.62%    10,421,211,481     549,714,725           94.88%      579,378,926     2,012,226,900       91.06%    2,209,781,353
         1998         10,369,909,600       94.20%    11,007,854,687     617,458,900           94.44%      653,810,779     2,160,783,700       90.01%    2,400,604,044
         1999         11,098,693,500       92.71%    11,971,432,711     643,008,800           93.04%      691,110,060     2,257,215,900       92.17%    2,448,970,272
         2000         12,227,392,600       88.98%    13,741,731,400     665,511,800           93.78%      709,652,165     2,473,855,100       89.57%    2,761,923,747
         2001         13,995,424,800       82.33%    16,999,179,886     770,902,200           82.36%      936,015,299     2,797,877,700       80.92%    3,457,584,899




      (1) Assessed values include landbook values plus all supplements.
      (2) Ratios are from the Department of Taxation Sales Ratio Study in years 1992 – 1999. Ratios for 2000-2001 are estimated.
                                                   Table 7: Assessed Values and Estimated Market Values (cont.)



                                     --------------Land-------------            -----------------Public Service-----------            --------------------Totals--------------------
                              Use                                        Estimated          Public                  Estimated          Total            Total                      Total
                            Value            Market                        Market           Service                  Market         Use Value         Market                     Estimated
                Year       Assm't (3)         Assm't         Ratio         Value            Equal         Ratio      Value          Assessment       Assessment       Ratio     Market Value
                1992         783,096,724     1,170,862,524     95.50%     1,226,034,057     778,794,325    95.50%    815,491,440    12,960,120,146   13,347,885,946    94.58%    14,113,261,306
                1993         640,073,845      971,899,445      93.00%     1,045,053,167     798,714,196    93.00%    858,832,469    12,594,196,679   12,926,022,279    87.91%    14,703,524,241
                1994         567,077,027      856,588,427      93.20%      919,086,295      832,541,600    93.20%    893,284,979    12,656,308,563   12,945,819,963    93.27%    13,880,347,693
                1995         519,823,006      793,374,506      93.70%      846,717,723      835,162,501    93.70%    891,315,369    12,948,175,030   13,221,726,530    92.34%    14,318,942,971
                1996         515,215,493      783,215,893      93.80%      834,984,961      825,728,680    93.80%    880,307,761    13,309,906,073   13,577,906,473    93.08%    14,587,494,534
                1997         541,820,016      796,919,916      94.88%      839,924,026      830,430,439    94.88%    875,242,874    13,794,360,537   14,049,460,437    94.13%    14,925,538,660
                1998         468,798,700      715,493,400      94.44%      757,616,900      866,813,779    94.44%    917,846,018    14,483,764,679   14,730,459,379    93.60%    15,737,732,428
                1999         421,488,000      675,241,100      93.04%      725,753,547      871,897,315    93.04%    937,120,932    15,292,303,515   15,546,056,615    92.68%    16,774,387,522
                2000         378,120,400      630,189,000      88.96%      708,395,908      877,768,069    88.96%    986,699,718    16,622,647,969   16,874,716,569    89.24%    18,908,402,938
                2001         337,530,000      580,149,200      82.36%      704,406,508      887,525,905    82.36%   1,077,617,660   18,789,260,605   19,031,879,805    82.12%    23,174,804,251




      (3) Certain agricultural and forestal land is granted special use value assessment.
A-7
A-8

                                                    Table 8: History of the Real Estate Tax Base*

                                    ----------1995----------        ----------1996----------     ----------1997----------   ----------1998----------
                                    Amount        Percent           Amount        Percent        Amount        Percent      Amount        Percent
      Residential     $                   9,189             70.97 $      9,486          71.27 $      9,860         71.48 $ 10,370             71.60
      Apartments                            508              3.93          530           3.98          550          3.99      617              4.26
      Commercial/Ind.                     1,896             14.64        1,954          14.68        2,012         14.59    2,161             14.92
      Agricultural                          520              4.01          515           3.87          542          3.93      469              3.24
      Total Local                       12,113              93.55       12,484          93.80      12,964          93.98      13,617          94.02
      Public Service                       835               6.45          826           6.20         830           6.02         867           5.98
      Total                        $ 12,948               100.00 $      13,310        100.00 $ 13,794             100.00 $ 14,484            100.00



                                    ----------1999----------        ----------2000------------   ----------2001----------   ----------2002----------
                                    Amount        Percent            Amount        Percent       Amount        Percent      Amount        Percent
      Residential     $ 11,099                              72.58 $     12,227          73.56 $ 13,995             74.49 $ 17,265             77.04
      Apartments           643                               4.20          666           4.00      771              4.10      893              3.98
      Commercial/Ind.    2,257                              14.76        2,474          14.88    2,798             14.89    3,115             13.90
      Agricultural         421                               2.76          378           2.27      338              1.80      249              1.11
      Total Local                       14,420              94.30       15,745          94.72      17,902          95.28      21,523          96.04
      Public Service                       872               5.70          878           5.28         888           4.72         888           3.96
      Total                        $ 15,292               100.00 $      16,623        100.00 $ 18,789             100.00 $ 22,411            100.00

      *Assessments include original landbook plus supplements.
      Note: All amounts are in millions.
      Supplements are estimated for 2002.
                                                  Table 9: Public Service and Commercial/Industrial Assessments
                                                                    As a Percentage of the Tax Base

                                                  1993     1994      1995     1996     1997     1998     1999     2000     2001     2002
            Public Service                         6.34%    6.58%     6.45%    6.20%    6.02%    5.98%    5.70%    5.28%    4.72%    3.96%
            Commercial/Ind.                       16.70%   15.42%    14.64%   14.68%   14.59%   14.92%   14.76%   14.88%   14.89%   13.90%
            Total                                 23.04%   22.00%    21.09%   20.88%   20.61%   20.90%   20.46%   20.16%   19.61%   17.86%
      Note: Supplements for 2002 are estimated.
A-9
                                                               Table 10: Assessment Performance Statistics


Level of Assessment(1)
                                                            1992        1993         1994         1995        1996         1997        1998           1999   2000     2001** Standard (3)
       Residential Urban                                   95.80%      94.00%       94.10%      93.90%       94.06%      95.28%       95.20%      93.43%     89.31%    82.70%     100.00%
       Residential Suburban                                93.60%      87.80%       91.00%      92.50%       92.14%      91.78%       89.90%      88.77%     85.14%    80.29%     100.00%
        Weighted Average (Residential)                     95.43%      93.04%       93.17%      93.66%       93.75%      94.62%       94.20%      92.71%     88.98%    82.33%     100.00%
       Apartment                                             *           *            *           *            *           *            *           *          *        *         100.00%
       Commercial/Industrial                               90.60%      68.50%       93.80%      85.10%       89.23%      91.06%       90.01%      92.17%     89.57%    80.92%     100.00%
       Agricultural                                          *           *            *           *            *           *            *           *          *        *         100.00%
       Overall Median                                      95.50%      93.00%       93.20%      93.70%       93.80%      94.88%       94.44%      93.04%     88.96%    82.36%     100.00%

Equity of Assessments(2)
                                                            1992        1993         1994         1995        1996         1997        1998           1999   2000     2001** Standard (3)
       Residential Urban                                    3.42%       4.23%        4.66%       7.04%        6.75%       5.50%        5.98%       5.91%      6.46%     6.48%      10.00%
       Residential Suburban                                 4.58%       9.10%        7.07%       9.69%        9.03%      10.37%       10.41%      10.71%     11.33%    11.49%      10.00%
        Weighted Average (Residential)                      3.62%       4.98%        5.39%       7.49%        7.12%       6.42%        6.81%       6.65%      7.42%     7.22%      10.00%
       Apartment                                                *           *            *           *            *           *            *           *          *         *      15.00%
       Commercial/Industrial                               12.42%      24.66%       12.53%      18.85%       31.07%      17.86%       28.13%      24.59%     22.86%    26.83%      15.00%
       Agricultural                                             *           *            *           *            *           *            *           *          *         *      20.00%
       Overall Equity                                       3.61%       6.84%        6.07%       7.77%        7.48%       6.87%        7.50%       7.06%      7.48%     8.35%      10.00%
A-10




          * Insufficient sales.
          ** 2001 ratios are estimated by the assessments office based on 2000 sales. There is not enough information to make an estimate for 2002.
          (1) "Level of Assessment" refers to the median ratio of assessment to selling price as reported by the Department of Taxation.
          (2) "Equity of Assessments" is the average percentage sales deviate from the median ratio.
          (3) Standards are provided by the International Association of Assessing Officers.
                                                                             Table 11A: Growth and Appreciation

2000 to 2001
                                          2000         --------Appreciation--------   ------------Growth------------      2001                               Total
                                     Landbook Value       Amount              %            Amount             %      Landbook Value                         Change
Residential                         $ 12,025,990,000 $     914,392,600           7.60 $ 793,303,200            6.60 $ 13,733,685,800                            14.20
Apartments                                663,240,800        60,036,500          9.05         26,708,900       4.03       749,986,200                           13.08
Commercial/Industrial                   2,448,482,400      241,721,400           9.87         70,583,300       2.88     2,760,787,100                           12.76
Agricultural                              377,675,900         8,686,500          2.30        (50,251,100) (13.31)         336,111,300                          (11.01)
Total Landbook                             15,515,389,100                 1,224,837,000                  7.89      840,344,300    5.42     17,580,570,400       13.31
Public Service*                               877,768,069                             -                   -          9,757,836    1.11        887,525,905        1.11
Total                               $      16,393,157,169 $               1,224,837,000                  7.47 $    850,102,136    5.19 $   18,468,096,305       12.66



2001 to 2002
                                          2001        --------Appreciation--------   ------------Growth------------      2002                                Total
                                     Landbook Value      Amount              %            Amount             %      Landbook Value                          Change
Residential                         $ 13,733,685,800 $ 2,398,823,000          17.47 $ 1,132,934,200           8.25 $ 17,265,443,000                             25.72
Apartments                                749,986,200       80,872,000        10.78          62,094,400       8.28       892,952,600                            19.06
Commercial/Industrial                   2,760,787,100     183,540,200           6.65       171,056,100        6.20     3,115,383,400                            12.84
Agricultural                              336,111,300       26,855,300          7.99      (113,689,500) (33.82)          249,277,100                           (25.83)
Total Landbook                             17,580,570,400                 2,690,090,500                 15.30     1,252,395,200   7.12     21,523,056,100       22.43
Public Service*                               887,525,905                             -                   -                   -    -          887,525,905         -
Total                               $      18,468,096,305 $               2,690,090,500                 14.57 $ 1,252,395,200     6.78 $   22,410,582,005       21.35


       *All changes in Public Service are attributed to growth. Public Service for 2002 is estimated.
       Note: These tables do not include supplements.
A-11
                                             Table 11B: History of Appreciation Rates
A-12

                                                                                                    Public
          Landbook Residential Apartments Commercial                                                Service                Land                 Overall
               1992     -1.75%    -10.50%     -6.25%                                                    0.00%               -15.00%                -3.60%
               1993     -1.71%    -12.62%    -11.46%                                                    0.00%               -22.28%                -4.96%
               1994     -0.12%       5.11%    -9.18%                                                    0.00%               -13.03%                -2.09%
               1995      1.40%       0.50%    -7.00%                                                    0.00%                -8.68%                -0.47%
               1996     -0.61%       0.96%     0.36%                                                    0.00%                -3.86%                -0.49%
               1997      0.14%      -2.08%     1.41%                                                    0.00%                -4.99%                 0.05%
               1998      1.30%       6.80%     5.40%                                                    0.00%                -4.56%                 1.85%
               1999      2.02%       2.58%     2.15%                                                    0.00%                -4.43%                 1.74%
               2000      4.31%       3.24%     1.76%                                                    0.00%                -1.23%                 3.49%
               2001      7.60%       9.05%     9.87%                                                    0.00%                 2.30%                 7.47%
               2002     17.47%     10.78%      6.65%                                                    0.00%                 7.99%               14.57%



                                                  Table 11C: History of Growth Rates
                                                                                                    Public
          Landbook Residential Apartments Commercial                                                Service                Land                 Overall
               1992      2.15%     13.11%     4.38%                                                     2.00%                10.14%                3.45%
               1993      1.59%      0.04%     3.75%                                                     2.56%                 5.88%                2.22%
               1994      2.37%      6.71%     2.56%                                                     0.44%                 0.00%                2.32%
               1995      2.81%      1.55%     3.23%                                                     2.00%                 1.64%                2.72%
               1996      3.91%      1.48%     3.47%                                                    -1.13%                -0.52%                3.25%
               1997      3.61%      6.22%     1.67%                                                     3.00%                -0.52%                3.24%
               1998      3.89%      6.23%     1.94%                                                     4.38%                -0.55%                3.58%
               1999      4.60%      2.27%     1.54%                                                     0.59%                -0.58%                3.64%
               2000      5.71%      0.00%     7.89%                                                     2.00%                -7.16%                5.15%
               2001      6.60%      4.03%     2.88%                                                     1.11%               -13.31%                5.19%
               2002      8.25%      8.28%     6.20%                                                     0.00%               -33.82%                6.78%
       Note: These tables included Public Service properties in addition to the landbook categories. All changes in Public Service are attributed to growth.
       Public Service for 2002 is estimated.
       These tables do not include supplements.
       These rates represent the effects of growth and appreciation from the prior year on the landbook for the year shown.
                                                         Table 11D: History of Residential Appreciation and Inflation
A-13




                                          Actual Residential Appreciation, then Forecast:
                                          Actual Ave. 4.3%, with Forecast, 4.4%
       20.0%
                                          Inflation Rate, Annual Ave. 3.9%                                                                                                                                                                                                                                        17.5%

       15.0%


       10.0%
                                                                                                                                                                                                                                                                                                   7.6%

        5.0%


        0.0%


       (5.0%)
                CY80, FY82

                             CY81, FY83

                                            CY82, FY84

                                                         CY83, FY85

                                                                      CY84, FY86

                                                                                   CY85, FY87

                                                                                                CY86, FY88

                                                                                                             CY87, FY89

                                                                                                                          CY88, FY90

                                                                                                                                       CY89, FY91

                                                                                                                                                    CY90, FY92

                                                                                                                                                                 CY91, FY93

                                                                                                                                                                              CY92, FY94

                                                                                                                                                                                           CY93, FY95

                                                                                                                                                                                                        CY94, FY96

                                                                                                                                                                                                                     CY95, FY97

                                                                                                                                                                                                                                  CY96, FY98

                                                                                                                                                                                                                                               CY97, FY99

                                                                                                                                                                                                                                                            CY98, FY00

                                                                                                                                                                                                                                                                         CY99, FY01

                                                                                                                                                                                                                                                                                      CY00, FY02

                                                                                                                                                                                                                                                                                                     CY01, FY03
                                                                                                                               CY of Value, FY of Revenue
                                           Table 12: Top Fifty Real Estate Taxpayers—FY2002
Rank                    Owner Name            2001 Assessment    % of Tax    Rank               Owner Name              2001 Assessment   % of Tax
                                                                  Base                                                                     Base
  1          VA ELECTRIC & POWER COMPANY          $392,129,517      2.123%    26    LOCKHEED MARTIN FEDERAL SYSTEMS        $27,460,500       0.149%
  2          POTOMAC MILLS LTD PARTSHP            $238,985,900      1.294%    27    E&A SOUTHEAST LTD PTNSHP               $26,901,700       0.146%
  3          NORTHERN VIRGINIA ELECTRIC CO-OP     $156,279,323      0.846%    28    BEAZER HOMES CORP                      $24,801,900       0.134%
  4          VERIZON SOUTH INC                    $136,455,279      0.739%    29    RIDGEDALE INC                          $24,798,100       0.134%
  5          AMERICA ONLINE INC                    $73,680,800      0.399%    30    JJJ AMPHITHEATER LIMITED PTNSHP        $24,253,400       0.131%
  6          MANASSAS MALL LLC                     $65,048,200      0.352%    31    SRK MISTY RIDGE ASSOCS LTD PTNSHP      $23,752,100       0.129%
  7          WASHINGTON GAS LIGHT COMPANY          $62,206,162      0.337%    32    DIECA COMMUNICATIONS INC               $23,256,667       0.126%
  8          WNH LIMITED PARTNERSHIP               $61,714,700      0.334%    33    DOMINION COUNTRY CLUB LP               $23,042,800       0.125%
  9          KIR SMOKETOWN STATION LP              $52,296,600      0.283%    34    PULTE HOME CORPORATION                 $20,649,700       0.112%
 10          HYLTON                                $47,257,500      0.256%    35    WINDSOR POTOMAC VISTA LTD PTNSHP       $20,330,000       0.110%
 11          LBK LP                                $46,536,200      0.252%    36    PIEDMONT LC                            $19,923,600       0.108%
 12          PRINCE WILLIAM SQUARE ASSOCIATES      $42,348,200      0.229%    37    POWELLS CREEK TOWNE SQUARE LTD         $19,919,600       0.108%
 13          IBV-IMMOBILIENFONDS INT'L 2 USA LP    $39,614,500      0.215%    38    SUMMERLAND HEIGHTS LP                  $18,487,100       0.100%
 14          COSCAN WASHINGTON INC                 $38,446,900      0.208%    39    WAL MART STORES INC                    $17,984,300       0.097%
 15          WESTMINSTER PRESBYTERIAN RETIR        $37,364,100      0.202%    40    NVR INC                                $17,784,800       0.096%
 16          HYLTON IRENE TRUST                    $34,073,600      0.184%    41    BAYVUE APARTMENTS JOINT VENTURE        $17,275,500       0.094%
 17          UNITED DOMINION REALTY TRUST INC      $34,073,600      0.184%    42    POTOMAC FESTIVAL LTD                   $16,824,100       0.091%
 18          DALE FOREST INVESTMENTS L L C         $33,627,100      0.182%    43    CAPSTONE ATLANTIC VI LP                $16,754,600       0.091%
 19          ACQUIPORT MIDATLANTIC RETAIL INC      $32,719,500      0.177%    44    COMBINED PROPERTIES LMTD PARTNSHP      $16,472,200       0.089%
 20          U S HOME CORPORATION                  $32,539,300      0.176%    45    KENSINGTON ASSOCS LP                   $16,437,300       0.089%
 21          TC CARLYLE STATION CO                 $29,608,100      0.160%    46    RTJ LIMITED LIABILITY COMPANY          $16,370,300       0.089%
 22          WESTGATE APARTMENTS LMTD PART         $29,551,800      0.160%    47    COLUMBIA GAS SERVICES                  $15,644,381       0.085%
 23          METROPOLITAN LIFE INSURANCE COM       $28,157,000      0.152%    48    ORCHARD GLEN EAST INC                  $15,558,600       0.084%
 24          PARADISE RIDGE ASSOCS LTD PTNSH       $28,137,200      0.152%    49    PARADISE SUDLEY NORTH LTD PTNSHP       $15,522,700       0.084%
 25          RICHMOND AMERICAN HOMES OF VA I       $27,801,600      0.151%    50    HARRISON LIMITED PARTNERSHIP           $15,335,800       0.083%




                                                                                           Top 50 as a % of Total Landbook: 12.43%
                                                                                            Total 2001 Landbook Plus Public Service
                                                                                                 Assessments: $18,468,096,305
      A-14
A-15

                                                      Table 13: Tax Rates

                                              1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
       Base Tax Rate                          1.3600 1.3600 1.3600 1.3600 1.3600 1.3600     1.3600   1.3600   1.3400   1.3000   1.2300
       Fire Districts
           Buckhall                           0.0800 0.0800 0.0800 0.0800 0.0800 0.0891     0.0963   0.0963   0.0963   0.0728   0.0728
           Wellington                         0.0700 0.0700 0.0700 0.0700 0.0700 0.0980     0.0980   0.0980   0.0980   0.0728   0.0728
           Dumfries Fire                      0.0440 0.0440 0.0381 0.0381 0.0381 0.0400     0.0400   0.0400   0.0400     **       **
           Dumfries Rescue                    0.0329 0.0329 0.0269 0.0269 0.0269 0.0286     0.0300   0.0300   0.0300     **       **
           Dumfries                            **      **     **     **     **       **       **       **       **     0.0728   0.0728
           Gainesville                        0.0410 0.0410 0.0440 0.0527 0.0527 0.0563     0.0607   0.0607   0.0607   0.0728   0.0728
           Stonewall                          0.0220 0.0320 0.0320 0.0320 0.0320 0.0356     0.0387   0.0387   0.0387   0.0728   0.0728
           Evergreen                          0.0650 0.0650 0.0650 0.0650 0.0650 0.0699     0.0786   0.0786   0.0786   0.0728   0.0728
           Neabsco                            0.0460 0.0530 0.0573 0.0573 0.0573 0.0622     0.0741   0.0741   0.0741   0.0728   0.0728
           Nokesville                         0.0800 0.0800 0.0800 0.0800 0.0800 0.0848     0.0984   0.0984   0.0984   0.0728   0.0728
           O.W.L.                             0.0450 0.0450 0.0450 0.0450 0.0450 0.0544     0.0577   0.0577   0.0577   0.0728   0.0728
           Yorkshire                          0.0800 0.0800 0.0800 0.0800 0.0800 0.0869     0.1000   0.1000   0.1000   0.0728   0.0728
           Coles                              0.0700 0.0800 0.0700 0.0800 0.0800 0.0858     0.0925   0.0925   0.0925   0.0728   0.0728
           Lake Jackson                       0.0800 0.0800 0.0800 0.0800 0.0800 0.0851     0.0921   0.0921   0.0921   0.0728   0.0728
           Montclair                          0.0166 0.0166   **     **     **       **       **       **       **       **       **
           Montclair South                    0.0196 0.0196   **     **     **       **       **       **       **       **       **
           Dale City Sanitary                 0.0600 0.0400 0.0200   **     **       **       **       **       **       **       **
           Formost Court Service               **      **     **     **     **       **     0.2300   0.2300   0.2300   0.2300   0.2300
           Woodbine Forest Service             **      **     **     **     **       **     0.1400   0.1400   0.1400   0.1400   0.0700
           Lake Jackson Service                **      **     **     **     **     0.1100   0.1100   0.1100   0.1100   0.1100   0.1100
           Bull Run Service                   0.0600 0.0600 0.0600 0.1000 0.1000 0.1000     0.1000   0.1000   0.1000   0.1000   0.1000
           Bull Run Sanitary                  0.1500 0.1500 0.1800 0.1800 0.1800     **       **       **       **       **       **
           Occoquan Forest Sanitary           0.1600 0.1600 0.1600 0.1600 0.1600 0.1600     0.1600   0.1600   0.1600   0.1600     **
           Prince William Parkway             0.2000 0.2000 0.2000 0.2000 0.2000 0.2000     0.2000   0.2000   0.2000   0.2000   0.2000
           234 Bypass District                0.0200 0.0200 0.0200 0.0200 0.0200 0.0200     0.0200   0.0200   0.0200   0.0200   0.0200
           Gypsy Moth Control                 0.0033 0.0033 0.0033 0.0033 0.0033 0.0028     0.0028   0.0028   0.0028   0.0040   0.0040
       * Tax rates per $100 assessed value.
       ** Not levied in that year.
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Addenda




          B-1
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B-2
Addendum A: Sample Notice of Reassessment




                                            B-3
      Addendum A: Sample Notice of Reassessment (cont.)




B-4
                             Addendum B: Rehabilitated Real Estate Program

                               Tax Exemption for
                       Rehabilitated Real Estate Program
            Tax Savings for Rehabilitating Your Home or Business
What is the program?
The Prince William Board of County Supervisors has approved an ordinance enacting a partial tax exemption for
real estate that is substantially repaired, rehabilitated, or replaced. The tax exemption program encourages renova-
tion and revitalization of aging structures located in the County. By improving the condition and appearance of
existing properties, Prince William County will become a more appealing place for homeowners and businesses to
invest.

The amount of exemption is based on the increase in building value caused by rehabilitation. The minimum in-
crease in value of the building is 25%. Exemptions are allowed for all property types: residential, commercial or
industrial, and hotel or motel. Minimum age and size increase requirements apply.

The tax exemption is applied over a 15 year period. The total tax savings is equal to 100% of the exemption each
year for the first 10 years. Over the next 5 years the tax savings is reduced and the exemption is phased out as fol-
lows: 80% in year 11, 60% in year 12, 40% in year 13, 20% in year 14, and 0% in year 15. The tax exemption is
transferable to a new property owner during the program period.


What are the requirements?
Participation in the program is subject to the following requirements.
    •   The increase in building value due to rehabilitation, renovation, or replacement must be 25% or more
        of the building value before any work is done.
    •   Residential structures must be at least 15 years old and increase in size no more than 30%.
    •   Commercial or industrial structures must be at least 20 years old and increase in size no more than
        100%.
    •   Hotel or motel structures must be at least 35 years old and increase in size no more than 100%.
    •   You must complete the rehabilitation by December 31 of the third calendar year after your application
        was submitted.
    •   You must submit the application and $50 non-refundable application fee after you obtain appropriate
        building permits, but before any work is started.
    •   Taxes must be kept current to qualify and remain in the program.
    •   All work must conform to existing building and zoning regulations.
    •   Applications must be filed after January 1, 1998, but before December 31, 2002.
    •   The maximum length of time for tax exemption is 15 years.




                                                                                                                  B-5
Other Information
The base value of the structure will be the assessed value before commencement of any work. The Real
Estate Assessments Division will make a final appraisal of the structure after work is complete, or after
three years, to determine the increase in value due to rehabilitation. All work must conform to building
and zoning regulations. Increase in assessed value due to rehabilitation is not equal to rehabilitation
costs.

Tax exemption is for the base real estate tax rate only and does not apply to fire and rescue levy, gypsy moth
levy, stormwater management fee, or any other special taxing districts. The tax exemption does not apply to
land value.
5 Steps to Exemption
To begin your real estate tax savings, follow these 5 steps toward exemption.

1. Building Permits Obtain all necessary building permits before applying for tax exemption. Contact the Con-
   struction Permits and Records Office at (703) 792-7125 or 792-6930. The building permit office is located in
   the McCoart Building at 1 County Complex Court, Prince William, VA 22192.

2. Complete Application Complete an application form for the Tax Exemption for Rehabilitated Real Estate
   Program. Include with the application copies of all necessary building permits and a $50 non-refundable ap-
   plication fee. Submit the application to the Real Estate Assessments Division located at 4379 Ridgewood Cen-
   ter Drive, Suite 203, Prince William, VA 22192.

3. Determine Base Value Upon application approval, the Real Estate Assessments Division will inspect the
   property to determine the base value. The base value will be the assessed value before the commencement of
   any work.

4. Request Final Inspection When rehabilitation is complete, submit a written request for inspection to Real
   Estate Assessments Division. Include a copy of the certificate of occupancy with the inspection request. Re-
   quests should be received prior to November 1 of the year in which the rehabilitation is complete.

5. Begin Exemption If the property qualifies for the tax exemption program, exemption will begin on January 1
   of the next calendar year.
How do I learn more?
For more information about the exemption program, or to make an appointment to discuss the program, contact the
Real Estate Assessments Division at (703) 792-6780. Offices are located at 4379 Ridgewood Center Drive, Suite
203, Prince William, VA 22192. Applications can be obtained by calling the Real Estate Assessments Division.
Information booklets and applications are also available at the building permit office located in the McCoart Build-
ing at 1 County Complex Court, Prince William, VA 22192.




B-6
      Addendum C: Tax Relief Programs             A             ___________________________
                                           Citizen's Guide         Tax Relief Programs for Elderly and
                                                  to                        Disabled Persons
                                                                _________________________________________

                                                                Senior citizens and disabled persons who meet
                                        Tax Relief Programs     certain criteria (see eligibility criteria below) may be
                                                 for            granted relief from all or part of real estate taxes, the
                                                                vehicle license decal fee, and qualify for a reduced
                                        Elderly and Disabled    tax rate on their personal property tax. Qualifying
                                                                limits may change from year to year. The limits in
                                              Persons           this brochure are current for the tax year beginning
                                                                January 1, 2002, only.

                                                                Tax relief is granted on an annual basis and
                                                                a new application must be filed each year.
                                                                Applications may be filed anytime after January 1st,
                                                                but before April 15, 2002.
                                                                _________________________________________

                                                                               Eligibility Criteria
                                                                _________________________________________

                                                                Senior Citizens:

                                                                To qualify, an applicant must:

                                                                -be 65 years of age or older as of December 31,
                                                                2001

                                                                -have a gross household income from all sources of
                                        Department of Finance   not more than $42,000. In determining income, the
                                                                first $6,500 of income earned by any relative living
                                         Real Estate Division   in the household other than the owner(s) or spouse is
                                        Prince William County   excluded.

                                               Virginia         -have a combined financial net worth for the
                                                                applicant and spouse residing in the household of not
                                                                more than $195,000, excluding the residence for
                                                                which the exemption is sought and up to one acre of
B-7




                                                                land which it occupies.
B-8
      Disabled Persons:                                         than $27,500, but does not exceed $42,000. Tax            Mobile Homes
                                                                deferral means that the taxpayer can defer payment
      To qualify, an applicant must:                            of some or all of the real estate taxes until the prop-   For the purposes of this program, mobile homes are
                                                                erty is sold or bequeathed. The taxes accumulate          eligible for tax relief as real estate, and the same
      -present a certification from the Social Security         with interest, but are not delinquent and no collec-      qualifications apply.
      Administration, Department of Veterans Affairs or         tion action is taken until the property is sold or be-    _________________________________________
      Railroad Retirement Board stating that the applicant      queathed. The amount deferred depends upon in-
      is permanently and totally disabled, or if not eligible   come and is limited as follows:                                               Application
      for certification by any of these agencies, the                                                                     _________________________________________
      applicant must present a sworn affidavit from two         Combined             Percent of       Percent of
      medical doctors, who are either licensed to practice       Income             Tax Relieved     Tax You Pay          Application forms for this program are available
      medicine in Virginia or are military doctors on                                                                     beginning January 1st at the Real Estate Assessments
      active duty, to the effect that the applicant is               $0 - $27,500     100% Exemption            0%        Office or by mail. You may request an application
      permanently and totally disabled. The affidavit of at     $27,501 - $35,700     100% Deferred             0%        form by calling 792-6780 during regular business
      least one of these doctors must be based on an actual     $35,701 - $37,800      75% Deferred            25%        hours. Current tax relief recipients will receive an
      physical examination.                                     $37,801 - $39,900      50% Deferred            50%        application form in the mail.
                                                                $39,901 - $42,000      25% Deferred            75%
      -meet the same gross household income and net                                                                       The deadline for filing an application for tax relief is
                                                                Deferred real estate taxes are due and payable with       April 15, 2001. This deadline may be extended by
      worth qualifications as those for senior citizens,        interest within 60 days after the sale or transfer of
      except the first $7,500 of any income received by                                                                   the Finance Director, but only if the applicant is ap-
                                                                the property, or within one year after the death of the   plying for the first time or for cases of hardship and
      the applicant as permanent disability compensation        last owner thereof who qualified for tax deferral.
      will be excluded as gross household income.                                                                         where failure to apply by the deadline was due to
                                                                Deferred taxes, together with interest shall not ex-      reasons beyond the applicant's control. Please attach
      ________________________________                          ceed 33% of the assessed value of the property.           a letter to your completed application stating these
                                                                Please call the Real Estate Assessments Office for        reasons.
                     Relief                                     more information.
      ________________________________                                                                                    NOTE: All information pertaining to gross house-
                                                                Personal Property and Decal                               hold income and net worth is confidential and not
      Real Estate                                                                                                         open for public inspection.
                                                                Those applicants who meet the net worth criteria
                                                                above and whose combined income does not exceed           The application form must be signed in the presence
      To qualify for real estate exemption or deferral, the
                                                                $42,000 may qualify for a reduced tax rate on their       of a notary. This service is available free of charge
      residence must be owned and occupied by the
                                                                vehicle and relief from the vehicle license decal fee     to applicants at the following location:
      applicant as of January 1, 2002,
                                                                on one auto per household. Applicants need not own        Real Estate Assessments Office
                                                                real estate or apply for real estate tax relief to be     4379 Ridgewood Center Drive, Suite 203
      Total exemption of the tax on a home and up to one
                                                                eligible. The applicant must be a resident of Prince      Prince William, Virginia 22192-5308
      acre of land it occupies is granted to qualified appli-
                                                                William County as of January 1, 2002. The vehicle         Telephone: (703) 792-6780
      cants whose gross household income does not ex-
                                                                must be registered in Prince William County as of         The office is open Monday through Friday from 8:00
      ceed $27,500 annually.
                                                                January 1, 2002. Relief from the vehicle license          a.m. to 5:00 p.m.
                                                                decal fee is an exemption and is not deferred.
      Total or partial deferral of the tax on a home and up
      to one acre of land it occupies is granted to qualified
                                                                Residents of towns must apply to the town govern-
      applicants whose gross household income is greater
                                                                ment for relief from the vehicle license decal fee.
                                 Addendum D: Sample Tax Bill
County of Prince William, Virginia                    Tax Year 2002
FINANCE DEPARTMENT                                    REAL ESTATE TAX BILL
Tax Administration Division                           Due July 15, 2002

How to Contact Us                                                Property Information
When calling, please provide this RPC No:                        Location-

703-792-6710                        -Taxpayer Services
703-792-6293                        -TTY                         GPIN-
703-631-1703 ext. 6710              -Metro Number

You may also fax questions to (703) 792-4673 or send by          Legal Description-
e-mail to Taxpayer_Services@pwcgov.org

See reverse side for office locations and hours of operations


Assessment, Tax Rate, and Annual Tax                             Amount to Pay

Land Value                                            $ 28,800   First-Half Real Estate Tax                     $664.51
Building or Improvement Value                         $ 72,900   Past Due Balance                                  0.00

Total Assessed Value                                  $169,800

Tax & Special Levy Rates (per $100 Assessed Value)

BASE TAX RATE                                         1.23
GYPSY MOTH                                            0.0040     Total Due by JULY 16, 2001                     $1,168.90
FIRE & RESCUE LEVY                                    0.0728

Total Tax Rate                                        1.3068


Total Annual Real Estate Tax



              RETAIN THIS PORTION FOR YOUR RECORDS. THIS ALONG WITH YOUR CANCELLED CHECK IS YOUR RECEIPT




                 DETACH AND RETURN THIS PORTION WITH PAYMENT IN THE ENCLOSED ENVELOPE

PRINCE WILLIAM COUNTY
REAL ESTATE TAX




                                                                                  MAKE CHECK PAYABLE TO:
                                                                                   PRINCE WILLIAM COUNTY

                                                                                        MAKE PAYMENTS TO:
                                                                                      PRINCE WILLIAM COUNTY
                                                                                           P.O.BOX 85685
                                                                                      RICHMOND, VA 23285-5685




                                                                                                                          B-9
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