By Kirstin Downey
Washington Post Staff Writer
Tuesday, October 23, 2007

Arlington County officials last night tentatively endorsed a proposal to raise the tax rate on retail and office properties to pay for as much as $37.5 million a year in transportation improvements, which would give the County Board money to expedite items long on its transit wish list.

The funding, if formally approved by the board next month, would allow such projects as the Columbia Pike trolley and the Crystal City Potomac Yard transit way to go forward. Other improvements would include vital work on existing infrastructure, such as changes to the Rosslyn Metro entrance and road and curb repairs.

If the tax increase is approved, as appears likely, Arlington would become the second Northern Virginia county, after Fairfax, to take advantage of a provision in the state transportation agreement passed by the General Assembly in April that allows local jurisdictions to increase commercial tax rates and keep the money to spend on transportation projects. The state previously required that governments impose a uniform tax on residential and commercial properties.

The board unanimously, and with little comment, approved a request to advertise a public hearing Nov. 13 for an amendment to the code to allow for the new tax.

Some residents protested the plan at last night's public hearing. Republican Party activist Robert Atkins said the board was approving the tax increase in a surreptitious manner without full notice to the public.

"People affected by this do not know it," he said.

In Arlington, the residential tax rate is 81.8 cents per $100 of assessed value. County officials would be permitted to increase the tax rate up to 25 cents for each $100, which could give commercial and industrial properties a tax rate of about $1.07.

There has been little controversy over the imposition of the tax. The business community, which is eager to see traffic congestion reduced, has been generally supportive because of widespread belief that transportation improvements are vitally needed.

The two Republicans running for election to the board in November, Michael T. McMenamin and Joseph Warren, have said that they would not support raising any taxes at all.

They have also been critical of the Columbia Pike trolley plan.

Green Party candidate Joshua Ruebner called the trolley a "boondoggle for developers" who want to build more high-rise buildings along Columbia Pike.

Several neighborhood residents, however, said the trolley would be an innovative way to reduce congestion.

The tax increase would include shopping centers, office buildings and warehouses but would not include apartment complexes. It would not affect residential property owners.