Manassas real estate taxes may spike even more than previously estimated

This article was republished with permission from WTOP’s news partner InsideNoVa.com. Sign up for InsideNoVa.com’s free email subscription today.

Manassas residents could face a higher real estate tax rate than initially proposed, as the City Council weighs raising the rate to help fund next year’s budget.

The city had initially proposed a real estate tax rate of $1.26 per $100 of assessed value, which would have raised the average homeowner’s annual tax bill by about $406, or 7.59%. The council is now considering a higher advertised rate of $1.28. Under that rate, InsideNoVa estimates a home assessed at $456,259 would be taxed about $5,840, or $91 more than under the earlier proposal.

Utility rates are also on the table. Water and electric bills are expected to rise, and earlier estimates suggested the average household could pay about $22 more per month if the proposed increases are adopted. However, a rate adjustment study must still be completed before councilmembers adopt the fiscal 2026 budget in June.

While most other personal property tax rates, such as those on cars, will remain flat, the city is raising the tax rate on data center equipment to $3.60 per $100 of assessed value to help diversify the city’s revenue stream.

Councilmembers say the additional revenue is needed to help fund some of the city’s largest expenses, including a $1.8 million increase in local funding for Manassas City Public Schools, rising utility costs, and expanded fire and rescue operations. City leaders also say investments are critical to maintaining public safety, ensuring reliable infrastructure and supporting a growing student population.

During Monday’s City Council meeting, several residents voiced concerns over the cumulative impact of tax increases, arguing higher bills could strain seniors, public workers and families already dealing with inflation.

“I just have to say that this has been the first time in the 40-plus years I’ve lived here that I’m concerned, extra concerned about living here,” said one Manassas resident. “I don’t want to go anywhere else, but you keep raising it, and I almost have to decide on something else. And where else can you go?”

However, other residents urged the council to proceed with the increases, saying they are needed to preserve the services and amenities that make Manassas a desirable place to live. Several said they would rather pay a little more in taxes and utility bills than see cuts to schools, public safety or infrastructure.

“I would guess that everybody wants to feel safe in their home, safe on the streets, to be able to have dependable utilities,” another resident said. “Everybody wants students to learn, businesses to thrive, opportunities for residents of all ages to have cultural enrichment, experiences and recreation. But it’s also true that nobody likes to pay for things, and that we will always complain when prices go up.”

Speaking to residents, Vice Mayor Mark Wolfe said the city has historically had one of the lowest utility rates in the region, which has created a gap between what residents pay and what it actually costs to maintain. Without adjustments, Wolfe said, the city risks underfunding critical infrastructure and operations.

“In the last six years, electric rates have risen 2%, and we all know that’s just not the reality of the marketplace that we live in … And what has happened is that we are now charging less than it costs to provide the service, and we have to make that whole, because obviously that’s not a sustainable model, and to do so invites the demise of that system,” Wolf said.

Councilmember Sonia Vásquez Luna echoed Wolfe’s sentiment, saying the council worked to keep rate increases as low as possible while ensuring the city could continue providing essential services.

The proposed budget, which totals $511.7 million across all funds, reflects an increase of about $25.3 million, or 5.2%, over fiscal 2025. While overall spending is up, the general fund will drop by about $15.2 million, or 8.7%, due to the timing of capital projects and reduced reliance on reserves.

Beyond schools, fire and rescue and utilities, the budget includes funding for airport operations, technology upgrades and park improvements. The city is also continuing to invest in downtown development efforts, with councilmembers saying the goal is to maintain Manassas’ quality of life and support long-term growth.

Council has advertised the $1.28 tax rate but has not yet adopted it. Members are scheduled to revisit the budget at a work session on April 30. The budget reading is set for May 12, with final adoption expected on June 9.

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