Pursuant to § 58.1-3210 of the Code of Virginia, the
County of Rappahannock, Virginia, hereby establishes a program to
provide tax relief for the elderly and totally disabled if they and
their property qualify according to the following tests. Tax relief
may take the form of a total or partial exemption. The tax relief
provided for in this article applies to County real estate taxes.
Any reference herein to real estate shall include manufactured homes.
A.
In order to qualify for tax relief under this article, an applicant
must pass all of the following tests:
B.
A person who otherwise qualifies for relief under this article shall
not be required to reside in Rappahannock County for a designated
period of time as a condition for qualifying for tax relief.
A.
In order to qualify for the relief provided for in this article,
an individual must be either at least 65 years of age or permanently
and totally disabled.
B.
For purposes of this article, the term "permanently and totally disabled"
shall mean unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment
or deformity which can be expected to result in death or can be expected
to last for the duration of such person's life.
C.
To qualify as being "permanently and totally disabled," an applicant
for relief must provide a certification by the Social Security Administration,
the Department of Veterans Affairs or the Railroad Retirement Board,
or if such person is not eligible for certification by any of these
agencies, a sworn affidavit by two medical doctors who are either
licensed to practice medicine in the commonwealth or are military
officers on active duty who practice medicine with the United States
Armed Forces, to the effect that the person is "permanently and totally
disabled," as defined above; however, a certification pursuant to
42 U.S.C. § 423(d) by the Social Security Administration,
so long as the person remains eligible for such social security benefits,
shall be deemed to satisfy such definition. The affidavit of at least
one of the doctors shall be based upon a physical examination of the
person by such doctor. The affidavit of one of the doctors may be
based upon medical information contained in the records of the Civil
Service Commission which are relevant to the definition of "permanently
and totally disabled."
A.
In order to qualify for the relief provided for in this article,
real estate to which any exemption is to apply must be owned and occupied
as the sole dwelling of a qualifying individual. The qualifying property
shall consist of the dwelling and up to 5 acres surrounding same.
B.
A dwelling jointly held by a husband and wife, with no other joint
owners, is qualifying property if either spouse is 65 or over or is
permanently and totally disabled.
C.
Qualifying property shall retain that status if the qualifying individual
moves to a hospital, nursing home, convalescent home or other facility
for their physical or mental care, provided the qualifying property
is not leased or used by others for consideration.
A.
In order to qualify for tax relief under this article with respect
to real estate taxes due on December 5, 2023, and thereafter, the
annual income attributable to an applicant in the immediately preceding
calendar year shall not exceed approximately 1/2 of the median household
income in Rappahannock County, whether by full or partial exemption.
The Commissioner of the Revenue shall set the limit annually using
the median household income value published by the U.S. Census Bureau
rounded to the nearest $5,000. For reference, in 2022, 1/2 of the
median household income in Rappahannock County was approximately $40,000.
B.
The annual income attributable to the applicant shall be computed
by adding together the total income received during the preceding
calendar year, without regard to whether a tax return is actually
filed, by 1) owners of the dwelling who use it as their principal
residence, 2) owners' relatives who live in the dwelling, and 3) nonrelatives
of the owner who live in the dwelling, except for bona fide tenants
or bona fide paid caregivers of the owner. Income shall include only
those sources of gross income that are subject to tax under federal
income tax laws, regulations, rules, or policies.
C.
If an applicant can prove to the satisfaction of the Commissioner
of the Revenue that his/her physical or mental health has deteriorated
to the point that the only alternative to permanently residing in
a hospital, nursing home, convalescent home or other facility for
his/her physical or mental care is to have a relative move in and
provide care for the applicant, and if a relative does then move in
for that purpose, then none of the income of the relative, or of the
relative's spouse, shall be counted towards the income limit.
D.
The Commissioner of the Revenue shall calculate the annual income
limitation amount as necessary after review of the median household
income in Rappahannock County by no later than March 1 in each year
and cause the new amounts to be published once a week for three consecutive
weeks in a newspaper of general circulation in Rappahannock County
beginning the first date of publication following March 1.
A.
In order
to qualify for relief under this article in the form of a complete
or partial tax exemption, the net financial worth of the applicant
shall not exceed $200,000.
B.
Net financial worth shall be computed by adding together the total
net financial worth, including the present value of all equitable
interests, as of December 31 of the immediately preceding calendar
year, of the owners, and of the spouses of any owners, of the dwelling.
There shall be excluded from this computation the value of the dwelling
and up to 10 acres surrounding it.
Any person who passes all four tests shall be entitled to tax
relief on the qualifying property as follows:
A.
The Commissioner of the Revenue shall set the maximum amount of tax
relief based on the typical real estate tax bill attributable to the
average assessed value of dwellings on 20 acres or less in Rappahannock
County. The Commissioner of the Revenue shall periodically adjust
this maximum exemption amount with changes in assessed values. For
reference, in 2022 the limit would be $2,500 based on the noted typical
real estate tax bill attributable to the average assessed value of
dwellings on 20 acres or less in Rappahannock County.
B.
If the income limitation (Test 3) is met and the income is $25,000
or less, the qualifying property shall be 100% exempt from real estate
taxes up to the maximum exemption amount. This $25,000 income level
is based on approximately two times the poverty threshold for individuals
65 years of age and older as reported by the U.S. Census Bureau for
2020. The Commissioner of the Revenue shall periodically adjust the
$25,000 limit so it remains generally aligned with two times the poverty
level.
C.
If the income limitation is met, but the income is more than the amount determined in accordance with § 151-53B, then the amount of tax relief will be in accordance with a formula established by the Commissioner of the Revenue where the goal is that the amount of the exemption will decline as actual household income approaches the annual income limitation for tax relief.
A.
Any person claiming tax relief under this article shall file a request
for same annually with the Commissioner of the Revenue. Returning
applicants shall file between January 1 and April 1, and new applicants
shall file between January 1 and June 1. In cases where a late application
is filed, and in the opinion of the Commissioner the applicant is
without fault and hardship will result if the application is not accepted,
such application may be accepted, provided that, in no event shall
an application be accepted after December 5. If a person becomes permanently
and totally disabled on or after July 1, he or she may apply at any
time before December 15.
B.
The request shall be made under oath on penalty of perjury on forms
supplied by the Commissioner of the Revenue. The burden shall be on
the applicant to provide sufficient information for the Commissioner
to determine whether the applicant meets all requirements of this
article. The Commissioner may require the applicant to provide documents
supporting the claim for tax relief, including tax returns, to establish
income or net financial worth.
A.
This article shall first become effective for exemptions claimed
for tax year 2023 based on income received, and net worth accumulated,
in 2022. An exemption may be granted for any taxable year following
the year the applicant meets all four tests in this article.
B.
Changes in income, financial worth, ownership of property or other
factors occurring during the taxable year for which an exemption is
granted having the effect of exceeding or violating the limitations
and conditions of this article shall nullify any exemption for the
remainder of the current taxable year and the taxable year immediately
following. The exemption in the current taxable year shall be prorated
to the date of the event that causes disqualification.
C.
A change in ownership to a spouse or a nonqualifying individual,
when such change results solely from the death of the qualifying individual,
or a sale of such property, shall result in a prorated exemption for
the then-current tax year. The proceeds of the sale which would result
in the prorated exemption shall not be included in the computation
of net worth or income for that taxable year. Such prorated portion
shall be determined by multiplying the amount of the exemption by
a fraction wherein the number of complete months of the year such
property was properly eligible for such exemption is the numerator
and the number 12 is the denominator.
The Treasurer shall enclose written notice, in each real estate
tax bill, of the terms and conditions of the tax relief provided by
this article. The Treasurer may employ any other reasonable means
necessary to notify residents of the County about said tax relief.
A.
Any person who knowingly submits any false information for the purpose
of qualifying for tax relief shall be guilty of a misdemeanor and,
upon conviction thereof, shall be fined not less than $100 nor more
than $500 for each offense and shall not thereafter be eligible to
apply for tax relief.
B.
Any person who knowingly swears falsely as to any information or
fact in any application for tax relief hereunder shall be guilty of
perjury. If the Commissioner of the Revenue determines that any person
was improperly granted tax relief within the preceding three tax years
based upon false, misleading, or incomplete information submitted
by him/her, or on his/her behalf, then, in addition to any other penalty
allowed by law:
(1)
If an exemption was improperly granted, there shall be assessed
against the person who applied for tax relief a roll-back tax in an
amount equal to the amount of tax exempted, plus a penalty of 10%,
plus interest at the rate of 10% from the date the tax was due. Such
roll-back tax shall constitute a lien on the real property improperly
exempted.
C.
The Commissioner of the Revenue shall inform all property owners
disclosed in the application for tax relief, by first-class mail addressed
to the property address shown in the most-current application for
tax relief, that it has been determined that the tax relief granted
was improper because of false, misleading, or incomplete information
having been submitted and that the roll-back amount, plus penalties
and interest, as provided above, are due in full the following December
5 and, if not paid by then, shall be treated as delinquent in the
same manner as any other real estate taxes.
