[Adopted as Ch. 14 of the 1974 Code; amended
in its entirety 3-13-2023]
As authorized by Article
2, Chapter 32, of Title 58.1 of the Code of Virginia, 1950, as amended, a real estate tax exemption is hereby established for qualified property owners who are not less than 65 years of age or who are permanently and totally disabled and who are eligible according to the terms of this article. Persons qualifying for exemption are deemed to be bearing an extraordinary real estate tax burden in relation to their income and financial worth. The effective date of this article shall relate back to January 1, 2023.
The provisions of this article shall be administered by the
Commissioner of the Revenue according to the terms, conditions and
restrictions set forth herein, and the Commissioner is hereby authorized
and empowered to prescribe, adopt and enforce rules and regulations
for the administration of this article. The Commissioner may require
the production of certified tax returns and appraisal reports to establish
income or financial worth. This article shall be interpreted to conform
in all respects to any mandatory provisions contained in the Code
of Virginia, as it may be amended from time to time.
Exemption shall be granted to the extent set forth in this article,
provided that each and every one of the following criteria are met:
A. That the title of the property for which exemption is claimed is
held or partially held, on January 1 of the taxable year for which
exemption is sought, by the person or persons claiming exemption.
B. That the person or persons claiming the exemption was 65 years old
or older or permanently and totally disabled on December 31 of the
year immediately preceding the taxable year for which exemption is
sought.
C. That the real property for which the exemption is sought constituted
the sole place of residence of all owners of such property.
D. That the total combined household income during the year immediately
preceding the taxable year for which the exemption is sought shall
not exceed $40,000. In calculating the total combined household income,
for purposes of this article, such figure shall include the combined
income of all owners of the dwelling for which exemption is sought,
the relatives of the owners living in the dwelling, and any other
nonrelative household members living in the dwelling, excluding bona
fide tenants of the owners. Total combined household income shall
not include income of relative or nonrelative individuals providing
bona fide caregiving services to owner(s) whether such services are
compensated or not. Total annual household income shall not include
the first $2,000 of income of each relative or nonrelative, other
than the spouse of the owner or owners, who is living in the dwelling.
E. That the total combined net financial worth of the owners and the
spouse of any owner shall not exceed $100,000. The total financial
worth shall include the value of all assets, including equitable interests,
of the owners and the spouse of any owner, but shall exclude the fair
market value of the dwelling and the land upon which it is situated,
not exceeding one acre, for which exemption is claimed.
The person or persons claiming an exemption shall file annually
with the Commissioner of the Revenue, on forms supplied, an affidavit
setting forth the names of the related persons occupying the real
estate, their total income from all sources, the total income of the
owners and their spouses and the combined total net worth of the owner
and spouse. Such affidavit shall be filed not later than April 30
of each year. First-time filers who did not know of the tax relief
ordinance, or hardship cases such as sickness preventing filing by
April 30, may have until June 30 to file at the discretion of the
officer who administers this article. The Commissioner of the Revenue
is authorized to make such further inquiry of persons seeking such
exemption, requiring answers under oath, as may be reasonably necessary
to determine their qualifications therefor, as specified herein, and
the Commissioner of the Revenue is further authorized to require the
production of certified tax returns to establish the income or financial
worth of any applicant for tax relief hereunder.
The exemption hereunder is granted for any year following the
date that the owner or owners occupying such dwelling and holding
title or partial title thereto reaches the age of 65 years or becomes
totally and permanently disabled. Changes in respect to disability,
income, financial worth, ownership of property or other factors occurring
during the taxable year for which the affidavit is filed and having
the effect of exceeding or violating the limitations and conditions
provided herein shall nullify the exemptions for the then-current
taxable year and the taxable year immediately following.
Failure to pay any balance of tax, after credit is granted,
by December 5 shall nullify any tax credit, and the full amount of
tax assessed shall immediately become due unless the taxpayer has
made prior arrangements with the Director of Finance for making partial
payments.
For the purposes of this article, a "permanently and totally
disabled person" shall mean a person as described in § 58.1-3217,
Code of Virginia. Certification by the Social Security Administration,
the Veterans' Administration or the Railroad Retirement Board
or, if the person is not eligible for certification by any of these
agencies, a sworn affidavit by two doctors is required to be filed
with the affidavit of the person applying for tax relief, as required
by § 58.1-3213, Code of Virginia.
Changes in respect to income, financial worth, ownership of
property or other factors occurring during the taxable year for which
the affidavit is filed and having the effect of exceeding or violating
the limitations and conditions provided in this article shall nullify
any relief of real estate tax liability for the then-current taxable
year and the taxable year immediately following.
Any person or persons falsely claiming an exemption shall be
guilty of a misdemeanor and, upon conviction thereof, shall be fined
not less than $25 nor more than $250 for each offense.