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HomeMy Public PortalAbout2007_01_23_O005 Amending the TC Tax Relief for the Elderly The Town of Leesburg, Virginia PRESENTED: January 23.2007 ADOPTED: January 23. 2007 ORDINANCE 2007-0-05 AN ORDINANCE: TO AMEND AND REORDAIN SECTIONS 17-1.1 (REAL ESTATE TAX RELIEF FOR THE ELDERL Y OR TOT ALL Y AND PERMANENTLY DISABLED), 17 -1.3 (ADMINISTRATION OF EXEMPTION), 17-1.4 (REQUIREMENTS FOR EXEMPTION), 17-1.5 (CLAIMING AN EXEMPTION), AND 17-1.7 (PRORATION) OF ARTICLE I (IN GENERAL) OF CHAPTER 17 (TAXATION AND LICENSES) OF THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, 1976, AS AMENDED. The Town Council of Leesburg, Virginia, ordains as follows: SECTION 1. Section 17-1.1 (REAL ESTATE TAX RELIEF FOR THE ELDERLY OR TOT ALL Y AND PERMANENTLY DISABLED) of Article I (IN GENERAL) of Chapter 17 (TAXATION AND LICENSES) of the Code of the Town of Leesburg, Virginia, 1976, as amended, be and the same is hereby amended by changing the definitions of Director of Finance, exemption, permanently and totally disabled, total combined income, and Town Council to read as follows. All other definitions in this Section remain the same. Sec. 17-1.1. Real estate tax relief for the elderly or totally and permanently disabled. Definitions. As used herein: Director of Finance means the Director of Finance of the Itown or any of the Director's duly authorized agents. - 2 - AN ORDINANCE: TO AMEND AND REORDAIN SECTIONS 17-1.1 (REAL ESTATE TAX RELIEF FOR THE ELDERLY OR TOT ALL Y AND PERMANENTLY DISABLED), 17 -1.3 (ADMINISTRATION OF EXEMPTION), 17-1.4 (REQUIREMENTS FOR EXEMPTION), 17-1.5 (CLAIMING AN EXEMPTION), AND 17-1.7 (PRORATION) OF ARTICLE I (IN GENERAL) OF CHAPTER 17 (TAXATION AND LICENSES) OF THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, 1976, AS AMENDED Exemption means exemption from the Itown real estate tax according to the provisions of this chapter. Permanently and totally disabled means a person who has been certified by the Veterans ,\dministration, or the Railroad Retirement Board, or if such person is not eligible for certification by any of these ageaeies, a sworn affidavit by tvt'O medical doctors licensed to practice medicine in the commonwealth, one of whom practices medicine in Leesburg, to the eff-ect 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. The affidavit of one of such doctors may be based upon medical inf-ormation contained in the records of the civil service commission, 'Nhich is reh~'/ant to the standards for determining permanent and total disability. For purposes of this section, 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. Certification that a person is totally and permanently disabled shall be by the Social Security Administration. the Department of Veterans - 3 - AN ORDINANCE: TO AMEND AND REORDAIN SECTIONS 17-1.1 (REAL ESTATE TAX RELIEF FOR THE ELDERLY OR TOT ALL Y AND PERMANENTLY DISABLED), 17 -1.3 (ADMINISTRATION OF EXEMPTION), 17-1.4 (REQUIREMENTS FOR EXEMPTION), 17-1.5 (CLAIMING AN EXEMPTION), AND 17-1. 7 (PRORATION) OF ARTICLE I (IN GENERAL) OF CHAPTER 17 (TAXATION AND LICENSES) OF THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, 1976, AS AMENDED 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 within the United States Armed Forces. to the effect that the person is permanently and totally disabled. either (1) as defined in this Section or (2) as certified pursuant to 42 U.S.C. Section 423(d) by the Social Security Administration so long as the person remains eligible for such social security benefits. 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 is relevant to the standards for determining permanent and total disability as defined in this Section. Total combined income means. without regard to whether a tax return is actually filed. gross income from all sources. except life insurance benefits or receipts from borrowing or other debt. of the owners of the dwelling residing therein and of any relatives of the owner who reside in the dwelling, provided that the first $10,000.00 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. - 4 - AN ORDINANCE: TO AMEND AND REORDAIN SECTIONS 17-1.1 (REAL ESTATE TAX RELIEF FOR THE ELDERLY OR TOT ALL Y AND PERMANENTLY DISABLED), 17-1.3 (ADMINISTRATION OF EXEMPTION), 17-1.4 (REQUIREMENTS FOR EXEMPTION), 17-1.5 (CLAIMING AN EXEMPTION), AND 17-1.7 (PRORATION) OF ARTICLE I (IN GENERAL) OF CHAPTER 17 (TAXATION AND LICENSES) OF THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, 1976, AS AMENDED Town Ceouncil means the Itown Ceouncil ofthe Town of Leesburg. Virginia. SECTION II. Section 17 -1.3 (ADMINISTRATION OF EXEMPTION) of Article I (IN GENERAL) of Chapter 17 (TAXATION AND LICENSES) of the Code of the Town of Leesburg, Virginia, 1976, as amended, be and the same is hereby amended to read as follows: Sec. 17-1.3. Administration of exemption. The exemption 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 in conformity with the provisions of this chapter, including the requiring ef answers under oath, as may be reasonably necessary to determine qualifications for exemption as specified by this chapter. The Director may require the production of certified income tax returns and appraisal reports in to establish income and/or net combined financial worth. SECTION III. Section 17-1.4 (REQUIREMENTS FOR EXEMPTION) of Article I (IN GENERAL) of Chapter 17 (TAXATION AND LICENSES) of the Code of the Town of Leesburg, Virginia, 1976, as amended, be and the same is hereby amended to read as follows: - 5 - AN ORDINANCE: TO AMEND AND REORDAIN SECTIONS 17-1.1 (REAL ESTATE TAX RELIEF FOR THE ELDERLY OR TOTALLY AND PERMANENTLY DISABLED), 17 -1.3 (ADMINISTRATION OF EXEMPTION), 17-1.4 (REQUIREMENTS FOR EXEMPTION), 17-1.5 (CLAIMING AN EXEMPTION), AND 17-1.7 (PRORATION) OF ARTICLE I (IN GENERAL) OF CHAPTER 17 (TAXATION AND LICENSES) OF THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, 1976, AS AMENDED Sec. 17-1.4. Requirements for exemption. Effective January 1. 2007. aAn exemption from real estate taxes shall be granted subject to the following provisions: (1) The title of the dwelling for which an exemption is claimed is held, or partially held, on January 1st of the taxable year during which an exemption is claimed by the person or persons claiming the exemption:; and (2) The person or persons occupying the dwelling and O'.vning holding title, or partial title, thereto. on December 31 st of the year immediately preceding the taxable year during which the exemption is claimed. is not less than 65 years of age", on December 31 st of the year immediately preceding the taxable year, or the person or persons occupying such dVielling are considered to be permanently and totally disabled as defined in ~section 17- 1.1. (3) A dwelling jointly held by a husband and wife may qualify if either spouse. on December 31 sf of the year immediately preceding the taxable year during which the exemption is claimed. is EWef not less than 65 years of age or is permanently and totally disabled. {1LSuch exemption program shall be subject to the following restrictions and conditions: - 6 - AN ORDINANCE: TO AMEND AND REORDAIN SECTIONS 17-1.1 (REAL ESTATE TAX RELIEF FOR THE ELDERLY OR TOT ALL Y AND PERMANENTLY DISABLED), 17-1.3 (ADMINISTRATION OF EXEMPTION), 17-1.4 (REQUIREMENTS FOR EXEMPTION), 17-1.5 (CLAIMING AN EXEMPTION), AND 17-1.7 (pRORATION) OF ARTICLE I (IN GENERAL) OF CHAPTER 17 (TAXATION AND LICENSES) OF THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, 1976, AS AMENDED a. The total combined income received from all sources during the preceding calendar year by (i) owners of the dwelling who use it as their principal residence and (ii) owners' relatives who live in the dwelling, shall not exceed the greater of $72,000.00 or the income limits based upon family size for the respective metropolitan statistical area, annually published by the Department of Housing and Urban Development for qualifying for federal housing assistance pursuant to Section 235 of the National Housing Act (12 U.S.C.,Section 1715z). Any amount up to $10,000.00 of income of each relative who is not the spouse, of an owner living in the dwelling and who does not qualify for the exemption provided by (34)b hereof of this Section may be excluded from the total combined income calculation. Also excluded from total combined income is all of the income received by an owner fef who is permanentlY disability disabled for the preceding yeaf, up to a maximum amount of $7,500.00. b. Notwithstanding 4(a) of this Section. ilf a person qualifies for an exemption under this article, and if the person can prove by clear and convincing evidence that the person's physical or mental health has deteriorated to the point that the only alternative to permanently residing in a hospital, nursing home, convalescent - 7 - AN ORDINANCE: TO AMEND AND REORDAIN SECTIONS 17-1.1 (REAL ESTATE TAX RELIEF FOR THE ELDERLY OR TOT ALL Y AND PERMANENTLY DISABLED), 17 -1.3 (ADMINISTRATION OF EXEMPTION), 17-1.4 (REQUIREMENTS FOR EXEMPTION), 17-1.5 (CLAIMING AN EXEMPTION), AND 17-1.7 (PRORATION) OF ARTICLE I (IN GENERAL) OF CHAPTER 17 (TAXATION AND LICENSES) OF THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, 1976, AS AMENDED home or other facility for physical or mental care is to have a relative move in and provide care for the person, 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, provided the owner of the residence has not transferred assets in excess of $5,000.00 without adequate consideration within a three-year period prior to or after the relative moves into such residence. c. The net combined financial worth, including the present value of all equitable interests, as of December 31 of the year immediately preceding calendar the taxable year during which an exemption is claimed, of the owners, and ef-.the spouse of any owner, excluding the value of the dwelling and the land, not exceeding ten acres", upon which it is situated shall not exceed $340,000.00 $440.000.00. SECTION IV. Section 17-1.5 (CLAIMING AN EXEMPTION) of Article I (IN GENERAL) of Chapter 17 (TAXATION AND LICENSES) of the Code of the Town of Leesburg, Virginia, 1976, as amended, be and the same is hereby amended to read as follows: - 8 - AN ORDINANCE: TO AMEND AND REORDAIN SECTIONS 17-1.1 (REAL ESTATE TAX RELIEF FOR THE ELDERLY OR TOT ALL Y AND PERMANENTLY DISABLED), 17 -1.3 (ADMINISTRATION OF EXEMPTION), 17-1.4 (REQUIREMENTS FOR EXEMPTION), 17-1.5 (CLAIMING AN EXEMPTION), AND 17-1. 7 (PRORATION) OF ARTICLE I (IN GENERAL) OF CHAPTER 17 (TAXATION AND LICENSES) OF THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, 1976, AS AMENDED Sec. 17-1.5. Claiming an exemption. (a) A tri-annual application and annual certification process is hereby established. The person or persons claiming an exemption for the first time shall file a real estate tax exemption affidavit with the Director of Finance, on forms supplied by the Director, on or before December 31 of the tax year for which relief is sought. Thereafter, a new affidavit must be filed once every three years. After January 1. but nNot later than April 1 of the second and third years, the person or persons participating in the exemption program must file with the Director of Finance a real estate tax certification that eligibility requirements continue to be met. The Director of Finance 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 is claimed their gress total combined income and the tetal net combined Bet financial worth of the owners and spouses. If an applicant is under the age of 65. the affidavit shall have attached thereto the certification. set forth in Section 17-1.1. that such applicant is permanently and totally disabled. - 9 - AN ORDINANCE: TO AMEND AND REORDAIN SECTIONS 17-1.1 (REAL EST A TE TAX RELIEF FOR THE ELDERLY OR TOT ALL Y AND PERMANENTLY DISABLED), 17 -1.3 (ADMINISTRATION OF EXEMPTION), 17-1.4 (REQUIREMENTS FOR EXEMPTION), 17-1.5 (CLAIMING AN EXEMPTION), AND 17-1.7 (PRORATION) OF ARTICLE I (IN GENERAL) OF CHAPTER 17 (TAXATION AND LICENSES) OF THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, 1976, AS AMENDED (c) If, after audit and investigation, the Director determines that the person or persons are qualified for an exemption, he shall so certify and shall deduct the amount of the exemption from the claimant's real estate tax liabilities. SECTION V. Section 17-1.7 (PRORATION) of Article I (IN GENERAL) of Chapter 17 (TAXATION AND LICENSES) of the Code of the Town of Leesburg, Virginia, 1976, as amended, be and the same is hereby amended to read as follows: Sec. 17-1.7. Proration. Notwithstanding Sec. 17-1.8. ilfthe qualifying property is sold, or if the last qualifying owner dies during the taxable year, the exemption shall be prorated for that portion of the taxable year prior to the death of the last qualifying owner. The proceeds of the sale which would result in the prorated exemption shall not be included in total combined income or net combined financial worth. Such prorated portion shall be determined by multiplying the amount ofthe 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 twelve is the denominator. SECTION VI. This Ordinance shall become effective upon the date and at the time of its - lO- AN ORDINANCE: TO AMEND AND REORDAIN SECTIONS 17-1.1 (REAL ESTATE TAX RELIEF FOR THE ELDERLY OR TOT ALL Y AND PERMANENTLY DISABLED), 17-1.3 (ADMINISTRATION OF EXEMPTION), 17-1.4 (REQUIREMENTS FOR EXEMPTION), 17-1.5 (CLAIMING AN EXEMPTION), AND 17-1.7 (PRORATION) OF ARTICLE I (IN GENERAL) OF CHAPTER 17 (TAXATION AND LICENSES) OF THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, 1976, AS AMENDED final passage. SECTION VII. If any provision of this ordinance is declared invalid, the decision shall not affect the validity of the ordinance as a whole or any remaining provisions of the ordinance. PASSED this 23rd day of January 2007. ~~ ~ C. stattd, Mayor Town of Leesburg ATTEST: ~..h;..tJ td CltMl: lerk of Council 07: Elderly and Disabled Tax Relief