The news traveled fast around Fall Church that pending Congressional action may impact us. The proposed tax law changes are set to limit property tax deductions to $10,000 annually, retroactively effective January 1, 2017. Most property owners will be impacted and see their taxes rise, as itemized deductions for property taxes over $10,000 may end this year.
The proposed Fall Church City 6 cent tax increase for the Bond Referendum will push more property owner tax bills over the $10,000 limit.
City planning always assumed full federal tax deductibility of all property taxes. The assumption being not to worry about the size of any tax, because you can take your deduction on your federal tax return. This assumption may be changing, this year.
This makes the bond referendum even scarier for some, as it will now be far too expensive.