HomeMy Public PortalAbout1990_02_27_O006 Amending the TC for Elderly Tax ReliefLccsl~urg
ORDINANCE NO.
90-0-6
PRESENTED
ADOPTED
February 27m 1990
February 27~ 1990
AN ORDINANCE: AMENDING SECTION 17-1.1 OF THE TOWN CODE
WHEREAS, Loudoun County elderly and handicapped residents are eligible for expanded eligibility
requirements for real estate tax relief; and
WHEREAS, at the urging of the Town Council members, Senator Charles Waddell amended
legislation before the General Assembly to expand Leesburg's requirements for tax relief for elderly and
disabled persons to match those of Loudoun County:
THEREFORE, 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. 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 $6,500 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) "Town" means Town of Leesburg, Virginia.
(5) "Town Council" means the Town Council of the Town of Leesburg.
(6) "Director of Finance" means the Director of Finance of the town or any of his duly
authorized agents.
(7) "Deferral" means deferral from the town real estate tax according to the provisions
of this chapter.
(8) "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) "Exemption" means exemption from the town real estate tax according to the
provisions of this chapter.
AMENDING THE TOWN CODE FOR TAX RELIEF FOR THE ELDERLY
(10)
"Head of Household" means the primary earner of income, between the husband
and wife, who either jointly or solely owns the dwelling and qualifying land on
which tax relief is sought.
(11) "Person" means a natural person.
(12)
"Permanently and totally disabled" means a person who has been certified by 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 who practices
medicine in Leesburg, to the effect that such person is permanently and totally
disabled. The affidavit of at least one such doctor may be based upon medical
information 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 terms "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.
(13) "Property" means real property.
(14)
"Taxable year" means the calendar year, from January 1 until December 31 for
which exemption or deferral is claimed.
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 eligible 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 worth.
(b) The effective date of this chapter shall be January 1, 1985.
Sec. 17-1.3. Administration of exemption or deferral.
The exemption or deferral shall 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 exemption or deferral in conformity with the provisions of this
chapter, including the requiring of answers under oath, as may be reasonably necessary to
determine qualifications for exemption or deferral as specified by this chapter. The Director
may require the production of certified income tax returns and appraisal reports to establish
income and/or financial worth.
Sec. 17-1.4. Requirements for exemption or deferral.
An exemption or deferral shall be granted subject to the following provisions:
(a)
The title of the dwelling for which an exemption or deferral is claimed is held, or
partially held, on January I of the taxable year by the person or persons claiming
the exemption or deferral.
(b)
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 considered to be permanently and totally disabled as
defined in Sec. 17-1.1(12) of this ordinance.
AMENDING THE TOWN CODE FOR TAX RELIEF FOR THE ELDERLY
(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 subject 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 V::c.".W
n~u,~ ~oo anm for~y thousand dollars ($40,000. 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 exemption or deferral is
claimed, provided that the first six thousand five hundred dollars ($6,500)
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. Also
excluded from gross income is all of the income received by an owner for
permanent disability for the preceding year up to a maximum amount of
$7,5O0.
(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 ocvcn~' ~-'~ +~ ...... ~ ~ aam
................. , .... one hundred fifty thousand dollars
$150,000. Total net financial worth shall include the value of all assets,
including equitable interests, of the owner or owners and the owners'
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.
Sec. 17-1.5. Claiming an exemption or deferral.
(a)
Annually, 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 September I of the tax year for
which relief is sought. The Director 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 for which the exemption or deferral is
claimed, their gross combined income and the total combined net worth of the
owners and spouses. The affidavit shall also state whether or not the person or
persons claim the exemption or the deferral option and, if the deferral, the amount
of deferral claimed, up to 100% of the real estate tax liability.
(c)
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.
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 portion of the real estate tax levied on the qualifying dwelling
and land.
Sec. 17-1-7. Amount of deferral; repayment of deferred taxes.
The person or persons qualifying for and claiming a deferral shall be relieved of all real
estate tax liability levied on the qualifying dwelling and land.
The accumulated amount of taxes deferred shall be paid, without penalty 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
AMENDING THE TOWN CODE FOR TAX RELIEF FOR THE ELDERLY
4
deferral of real estate taxes shall constitute a lien upon the real estate as if they had been
assessed without regard to the deferral under the provisions of this chapter. However, such
liens shall, to the gross price for which such real estate may be sold, be inferior to all other
liens of record.
Sec. 17-1.8. Changes in status.
Changes with respect to income, financial worth, ownership of property, medical status 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 chapter,
shall nullify any relief of real estate tax liability for the then current taxable year and the
ta~able 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 that
$300.00 for each offense.
SECTION II. This ordinance shall be effective July 1, 1990.
PASSED this 27 th day of
February , 1990.
Town of I.~sburg
ATTEST:
Clerk of C/~n~il
O:ELDERLY