With first half real estate taxes due at the end of July, Herndon residents and business-owners will feel the annual sting of making payments on properties that have once again, on average, increased from the previous year.
While the local Herndon tax rate was lowered by the former Town Council in March from 26 cents to 24 cents per $100 of assessed value, recent skyrocketing real estate values have led to an increase in total amount of taxes due.
The average developed residential property owner in Herndon will be charged $950 to be paid to the town this year, up from $828 the year before, according to figures from Fairfax County's Office of Real Estate Assessment. The owner of the average developed commercial property in Herndon will pay approximately $6,850 this year, up from $6,060 one year ago.
As the Town of Herndon is a separate municipality, these taxes are supplemental to the annual real estate tax of 89 cents per $100 of assessed value due on a property in Fairfax County.
While the town has tried to alleviate some of the burden placed on local taxpayers for the increased assessment by lowering tax rates, rising costs of town operations have proven to be a difficulty in keeping annual bills from increasing, said Town Manager Steve Owen.
"There are a lot of added costs that the town needs to cover this year, such as the price of insurance increasing, the rising cost of gas," said Owen. "Some of these costs aren't really discretional, they're just part of the economic environment we live in."
Owen added that while rising real estate taxes are a burden on almost everyone in the town, most residents know what they're getting when they move to Herndon.
"While we sometimes here complaints from people about having to pay higher taxes in recent years, there are certainly a lot of people out there who don't mind paying a little higher in taxes to get the added services that Herndon offers," Owen said.
BEFORE SOMEONE MAKES the decision to move to Herndon or purchase commercial space in the town, he or she will typically know what to expect when it comes to the supplemental property taxes due at the end of the year, said Bill Lauer, the owner and president of the Reston-based Tritek Partnerships. A developing and brokerage firm, Tritek Partnerships recently completed construction on the Herndon Commerce Center in downtown Herndon.
"People looking to open a business here have to realize that," they will pay extra in property taxes every year, Lauer said. "But what you're getting is the services that come with it: a bit closer police presence, a small town feel, cultural activities."
"For someone with a commercial interest in the town, they need to look at the expense and see if that is something that is important to them — and for many people it is."
Rising real estate expenses as a result of higher assessed values might have a different effect on people who are on fixed incomes, according to Herndon resident Judy Downer.
"Especially since I'm nearing my retirement and getting on a fixed income, yeah that added amount hurts," Downer said. "But that's one of the costs of living in a town with a lot of services geared for its residents."
DESPITE THE INCREASING burden of property tax payments on residents in Herndon, residents need to keep in mind that they are a side effect of a growing investment, said Herndon resident Lynn Schumaker.
"I think it's illogical that people actually complain about houses being assessed at higher and higher rates, then turn around and gloat about the price of their homes," Schumaker said. "That money [in tax payments] means that there is a return on their investment — and part of that is due to the services in the town."
Residents of Herndon agree to pay increased tax rates by moving within the town limits and expect not only the higher annual expense, but also an increased quality of life, Owen said.
"We're an extra layer of government and for that our residents have garbage collection, historic planning and the benefits of that, our own police force," he said. "The people always have the option to vote with their feet by leaving, but frankly we don't see a lot of that here — and we're proud of that."