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HomeMy Public PortalAbout1985_05_22_O007The Town of Leesburg in Virginia ORDINANCE NO. AN ORDINANCE: PRESENTED 85-0-7 ADOPTED AMENDING SECTION 17-1.1 OF THE TOWN CODE May 221, 1985 May 221, 1985 ORDAINED by the Council of the Town of Leesburg in Virginia as follows: SECTION I. Section 17-1.1 of the Town Code is amended to read as follows: Sec. 17-1.1. ~ax-Re~e~-for-the-e~derl7? Tax Relief for the elderly and totally and permanently disabled. (a) Definitions As used herein: (1) "Total gross combined income" means gross income from all sources of the owners of the dwelling residing therein and of any relatives of the owner who reside in the dwelling, provided that the first $4,000 of income of each relative, other than the spouse of the owner or owners, who is living in the dwelling shall not be included in such total. (2) "Net combined financial worth" means all assets less liabilities of the owners of the dwelling and of the spouse of any owner who resides therein, including equitable interests, excluding the value of the dwelling and the land in an amount not to exceed one acre upon which it is situated. (3) "Affidavit" means the real estate tax exemption or deferral affidavit. (4) (5) (6) "Town" means Town of Leesburg, Virginia. "Town Council" means the Town Council of the Town of Leesburg. "Director of Finance" means the Director of Finance of the town (7) or any of his duly authorized agents. "Deferral" means deferral from the town real estate tax according (8) to the provisions of this chapter. "Dwelling" means the full-time owned residence of the person or persons claiming exemption or deferral; and the land on which it is situated, not to exceed one acre. <9) (10) "Exemption" means exemption from the town real estate tax according to the provisions of this chapter. "Head of Household" means the primary earner of income, between the husband and wife, who either iointly or solely owns the dwelling and qualifying land on which tax relief is sought. -2- AMENDING SECTION 17-1.1 OF THE TOWN CODE (11) (12) "Person" means a natural person. "Permanently and totally disabled" means a person who has been certified by the Social Security Administration, the Veterans Administration, 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 licensed to practice medicine in the Commonwealth, one of whom practices medicine in Leesburg, to the effect that such person is permanently and totally disabled. The affidavit of at least one of such doctors shall be based upon a physical examination of such person by such doctor. The affidavit of one of such doctors may be based upon medical in- formation contained in the records of the Civil Service Commission which is releVant, to the standards for determining permanent and total disability. For purposes of this section~ the term "per- manently 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. (13) "Property" means real property. (14) (b) "Taxable year" means the calendar year, from January 1 until December 31 for which exemption or deferral is claimed. Any-person-no~-iess-ehan-6S-years-of-age-by-Meeember-Sis~-o{-~he year-preeeding-~he-da~e-o~-app½ica~ien;-~ho-o~ns-or-par~iaiiy-o~n~ a-dwe½½ing-as-~he-so½e-dwei½ing-of-~he-person;-shaii-be-eligibie ~or'and-may-app½y-~or-an-exemp~ion-or-de~erra½-o~-rea½-es~a~e-~axes om-s~eh-dwe½~img-amd-~he-½amd-~m-am-amo~me-no~-~o-exeee~-ome-aere om-wh~eh-~e-~s-s~aee~-prov~e~-ehaev (1) (2) ~he-~otai-combined-income;-as-hereinabove-defined;-dnrin§-~he immediateiy-preceding-year-canno~-exceed-$it;~: ~he-nee'combined-financiat-wor~h;-as-thereinabove-de~ined-aw-of Beeember-Bis~-of-the-immediateiy-preceding-year-eanno~-exeeed Sec. 17-1.2. Exemption or deferral authorized; effective date. (a) Real estate tax exemption or deferral is provided for qualified property owners whO are not less than sixty-five.years of age or who are permanently and totally disabled and who are eligibl~ according to the provisions of this Chapter. Persons qualifying for exemption or deferral are deemed to be bearing an extraordinary real estate tax burden in relation to their income and financial (b) worth. The effective date of this chapter shall be January 1, 1985. -3- AMENDING SECTION 17-1. OF THE TOWN CODE Sec. 17-1.3. Administration of exemption or deferral. The exemption or deferral shalt be administered by the Director of Finance according to the provisions of this chapter. The Director is hereby authorized to make an inquiry of persons seeking such exempt$on or deferral in conformity with the pro- visions of this chapter, including the requiring of answers under oath, as may be reasonably necessary to determine qualifi- cations for exemption or deferral as specified by this chapter. The Director may require the production of certified income tax returns and appraisal reports to estabish income and/or financial worth. App~¢ants-who-sat~sfy-the-requ~rements-of-th~s-are~c~e-may-¢hoose to-have-the-taxes-on-the-e~g{b{e-property-fu~y-exempted-~r-de- ~erred?--~f-an-app~cant-choo$es-to-defer-h~s-~r-her-taxesT-pay- ment-~s-not-reqn~red-unt~-the-app~cant-se~s-h~s-~r-her-~n~ere~ ~n-~he-properey-or-one-year-af~er-h~s-~r-her-deaeh=--~eferred ~axes-~t~-noe-accrne-pena~y-and-~n~erese~-h~wever-ae-~n~h-~me ~hese-~axes-be~ome-dne-aga~n~be~anse-of-fa~re-e~-mee~-ehe-re~n~re- menes-.f-~he-ar~e~-se~l~ng-~f-oneZs-~n~eres~-or-,deaeh-of-ehe app~eane~-ehe-eaxes-sha~-a¢~r~e-~neerea~-ae-½~-percen~-per-annnm= ~f-an-app½~cane-ehooses-exemp~on~-ehe-eaxes-are-fn~½y-a~aeed-and are-noe-reeoverab~e-by-ehe-~ownv Sec. 17-1.4. Requirements for exemption or deferral. (a) (b) An exemption or deferral shall be granted subject to the following provisions: The title of the dwelling for which an exemption or deferral is claimed is held, or partially held, on January 1 of the taxable year by the person or persons claiming the exemption or deferral. The person or persons occupying the dwelling and owning title, or partial title, thereto is not less than sixty-five years of age on December 31 of the year immediately preceding the taxable year, or the person or persons occupying such dwelling are considered to be permanently and totally disabled as defined in §17-1.1(12) of this ordinance. (c) A dwelling jointly held by a husband and wife may qualify if either spouse is over sixty-five or is permanently and totally disabled. Such exemption or deferral program shall be sub)ect to the following restrictions and conditions: (1) The gross combined income of the owner or owners during the year immediately preceding the taxable year did not exceed eighteen -4- AMENDING SECTION 17-1.1 OF THE TOWN CODE thousand dollars ($18,000). Gross combined income includes all income from all sources of the owner or owners and of owners' relatives living in the dwelling for which the exemp- tion or deferral is claimed, provided that the first four thousand dollars ($4,000) of income of each relative, other than the spouse, of the owner or owners, who is living in the dwelling, shall not be included in such total. (2) The total combined net financial worth of the owner or owners as of December 31 of the year immediately preceding the taxable year did not exceed sixty-five thousand ($65,000). Total net financial worth shall include the value of all assets, including equitable interests, of the owner or owners and the owner's spouse, and shall exclude the fair market value of the dwelling and the land upon which it is situated, not exceeding one acre, for which the exemption or deferral is claimed. App~cat~on-for-exempt~on-or-deferrai-provided-f~r-herein-shali be-made-not-~aeer-ehan-May-½s~-of-eaeh-year-for-wh~¢h-exemp~n or-deferra~-~s-~ght-~o-~he-d~rec~or-~f-f~nance-~n-f~rms-~-be prov~ded-by-h~m=--~he-app~¢at~om-mha~-be-a¢¢~mpan~ed-by-am a{~dav~e-seeeing-~reh-ehe-names-~{-a~½-pers~ns-~¢enpy~ng-sneh dwe½½~ng--and-seaeing-ehae-~he-~ta½-e~mbined-~ne~me-and-the-ne~ e~mbined-~nane~a~-w~r~h-d~-nee-exceed-~he-~im~ae~ns-se~-ff~rth ~n-snbsece~n-(b)-ab~ve=--The-d~rect~r-~-~nance-may-re~n~re an-app½~¢an~-~-answer-gnese~ns-nnder-~a~h-as-~-h~s-regn~re- menes-nnder-eh~s-are~e~e-and]~r-~-pr~dnee-~r-inspecei~n-eer~- ~ed-~edera~-~me~me-tax-retnrns-~r-the-preeed~ng-~hree-years e~-es~ab~ish-ehe-e~ta~-e~mbined-~n¢~me-~r-ne~-e~mb~ned-~inane~a~ w~reh-am-here~nbe{~re-de~ined= Sec. 17-1.5. Claiming an exemption or deferral. (a) .~nnually, and not later than May 1 of the taxable year, the person or persons claiming either an exemption or deferral must file a real estate tax exemption or deferral affidavit with the Director of Finance. Those applying for an exemption or deferral for the first time must file on or before Se~tem- ber 1 of the tax year for which relief is sought. The pirector shall have the discretion to permit applicants to file after these deadlines in cases of genuine hardship. (b) The affidavit shall set forth in a manner prescribed by the Director the names of the related persons occupying the dwelling ~or which the exemption or deferral is claimed, their gross com- bined income and the total combined net worth of the owners and -5- AMENDING SECTION 17-1.1 OF THE TOWN CODE spouses. The affidavit shall also state whether or 'not the person or persons claim the exemption or the deferral option and, if the (c) deferral, the amount of deferral claimed, up to 100% of the real estate tax liability. If, after audit and investigation, the Director determines that the person or persons are qualified for an exemption or ~deferral, he shall so certify and shall deduct the amount of the exemption or deferral from the claimant's real estate tax liability. Any-change-in-respect-~o-eota~-eombined-in¢ome~-net-eombined finan¢ia½-wor~h~-ownersh~p-of-~he-dwe~ng-or-o~her-fm¢~ors whieh-oeeur-during-~he-taxab~e-year-~or-whieh-ehe-a~idsvi~ is-filed~-and-whieh-has-~he-effec~-of-exceeding-or-vio½~ing ~he-iimiea~ions-and-condi~ions-of-ehis-arei~ie~-sha½i-n~ilify any-exemp~iens-er-de{errai-{er-ehe-~hen-eurren~-~axa'bi~-year and-~he-~axabie-year-immediateiy-{oitowing: Rea½-es~aee-deseribed-in-s~bseceion-tb)-ab~ve-sha½½-'be-exempe {rem-rea½-~seaee-eaxes-er-sneh-~axes-shali-be-de{erred-~nder ehe-provisions-o{-~his-ar~i¢ie-{or-any-year-in-whieh-pre~er spp½iea~ion-is-msde~-provided-~h~-i{-~he-ewnership-e{-ehe properey-{or-whieh-app½iea~ion-{or-exempeion-or-de{errs½-is made-is-noe-heid-soie½y-by-ehe-app½ieane-or-joine½y-wi~h-ehe app½ieaneis-sponsel-ehen-ehe-amo~ne-o{-esx-exempeion-or-de- {erra½-here~nder-sha½i-be-in-propor~ien-eo-ehe-a~p½i.eaneis ownership-ineerese-in-bhe-s~bjee~-rea½-~roper~y-as-ehae-owner- sMi~-ineerese-may-appear? Sec. 17-1.6. Amount of exemption. The person or persons qualifying for and claiming an exemption shall be relieved of all real estate tax liability for that por- tion of the real estate tax levied on the qualifying dwellin~ of land. Sec. 17-1.7. Amount of deferral; repayment of deferred taxes. The person or persons quali'fying for amd claiming, a deferral shall be relieved of all real estate tax liability levied on the qualifying dwelling and land. -6- AMENDING SECTION 17-1.1 OF THE TOWN CODE The accumulated amount of taxes deferred shall be paid, without Renalty and with interest in the amount of 8% per year, to the Director of'Finance by the vendor upon the sale of the dwelling, or from the estate of the decedent within one year after the death of the last owner thereof who qualifies for tax deferral under the provisions of this chapter. Such deferral of real estate taxes shall constitute a lien upon the real estate as if they had been assessed without re~ard to the deferral permitted by this chapter. However, such liens shall, to the extent that they exceed in the aggregate ten percent of the ~ross price for which such real es- tate may be sold, be inferior to all other liens of record. Sec. 17-1.8. Chan~es in status. Chan~es with respect to income, financial worth, ownership of property, medical status or other factors occurring durin~ the taxable year for which the affidavit is filed, and having the effect of exceedin~ or violating the limitations and conditions provided in this chapter, shall nullify any relief of real estate tax liability for the then current taxable year and the taxable year immediately following. Sec. 17-1.9. False claims. Any person or persons falsely claiming exemption or deferral shall be guilty of a misdemeanor and, upon conviction, thereof, shall be fined not less than $50.00 nor more than $300.00 for each offense. SECTION II. This ordinance shall be effective January 1, 1985. PASSED this 22nd day of May , 1985. Robert E. Sevila, Mayor Town of Leesburg ATTEST: Clerk of Co~cil