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HomeMy Public PortalAbout2008_02_12_O003 - Tax Exemptions for the Elderly and Disabled The Town of Leesburg, Virginia PRESENTED: February 12.2008 ORDINANCE NO: 2008-0-3 ADOPTED: February 12.2008 AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. The Council of the Town of Leesburg, Virginia, hereby ordains: SECTION I. Section 17-1.2 (EXEMPTION AUTHORIZED; EFFECTIVE DATE) of Article I (IN GENERAL) of Chapter 17 (TAXATION AND LICENSES) of the Code of the Town of Leesburg, Virginia, 1976, as amended, and to be applied retroactively to January 1, 2008, be and the same is hereby amended to read as follows: Sec. 17-1.2. Exemption authorized; effeetive date. (a) Full Exemption: Real estate tax exemption is provided 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 state law and the provisions of this chapter. Persons qualifying for exemption are deemed to be bearil'lg an extraordinary real estate tax burden in relation to their income and financial worth. (b) Pro-Rated Exemption: A pro-rated exemption from real estate tax is provided for the real estate (and dwelling) which is (i) iointly owned by two or more persons and (ii) occupied as the sole dwelling of each such person. at least one of whom is - 2 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. at least age 65 or permanently and totally disabled. and who are eligible according to state law and the provisions of this chapter. (c) Persons qualifying for exemption are deemed to be bearing an extraordinary real estate tax burden in relation to their income and financial worth. The effeetive date of this chapter shall be January 1, 1985. 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, and to be applied retroactively to January 1, 2008, 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 of 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 retums~ and appraisal reports and other pertinent documents 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 - 3 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. Leesburg, Virginia, 1976, as amended, be and the same is hereby amended and to be applied retroactively to January 1, 2008, to read as follows: Sec. 17-1.4. Requirements ffiF of full and pro-rated exemption. Effective January 1, 2008, ~aft full exemption from real estate taxes shall be granted subject to the following provisions: (la) Ownership: The title of the d\vellingproperty for which an exemption is claimed is must be held, or partially held, on January 1st of the taxable year. by the person or persons claiming the exemption. each of whom must also be (i) 65 years of age or older. or (in permanently and totally disabled on December 31 st of the year immediately preceding the taxable year. A dwelling iointly owned by a husband and wife. with no other ioint owners. may qualify if either spouse is 65 years of age or older or is permanently and totally disabled. during whieh an exemptiol'l is claimed by the person or persons claiming the exemptiol'l.; and (;!b) Occupancy: The property must be occupied as the principal dwelling of the person or persons claiming the exemption. each of whom must also be (i) 65 years of age or older. or (ii) permanently and totally disabled The person or persons occupying the dwelling and holding title, or partial title, thereto, on December 31 st of the year immediately preceding the taxable year. The primary residence owned by a person otherwise qualified for exemption under this chapter who is not - 4 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. actually occupymg the same while a patient in a hospital. nursing home. convalescent home or other facility for physical or mental care for an extended period of time shall continue to be deemed such qualifying owner's dwelling: provided. however. that such residence is not used by or leased to others for consideration. during which the exemption is claimed, is not less than 65 years of age, or permanently and totally disabled as defined il'l Section 17 1.1. (J~) Income:.\ d',yelling jointly held by a husband and wife may qualify if either spouse, 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 or is permanently and totally disabled. (1) Such exemption shall be subject to the following restrictioFls and conditions: &.- The gross tetat-combined income of the person or persons claiming the exemption during the received from all sources during the preeeding calendar year immediately preceding the taxable year did not exceed by (i) OVt'Ilers of the dwelling who use it as their principal residence and (ii) ov.ners' relatives 'Nho live in the dwelling, shall not exceed the greater of seventy-two thousand dollars ($72,000). provided that the first seven thousand. five hundred dollars ($7.500) of income received by an owner during the calendar year immediately preceding the taxable year as compensation for permanent - 5 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. disability shall not be included in such total. "Gross combined income" includes all income from all sources of the owner or owners and of the owners' relatives living in the dwelling for which the exemption is claimed. including (by way of example and not limitation) interest income. dividend income and distributions from trusts and lRAs. provided that the first ten thousand dollars .00 or the income limits based upon family size for the 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 amOl:lnt l:lp to ($10,000}.OO of income of each relative~ who is not other than the spouse, of aft the owner or owners. who is living in the dwelling~ shall not be included in such total. and who does not qualifY for the exemption provided by (31)b of this Sectiol'l may be excluded from the total combined income calculation. .--'..Iso excluded from total combined income is income received by an owner '.vho is permaaently disabled, up to a maximum amount of$7,500.00. b. Not\vithstanding 1(a) of this Section, if a person qualifies for aa eKemption under this article, and if the person can prove by clear and convincing e';idel'lce 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 - 6 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. home or other facility for physical or mental care is to have a relative move iB and provide care for the person, and if a relative does thefl 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 ovmer of the residence has not transf-erred assets in excess of $5,000.00 without adequate eOl'lsideration within a three year period prior to or after the relative moves into such residence. @6-;- Net Worth: The total ftet-combined net financial worth of the person or persons claiming the exemption, including the present value of all equitable interests, _as of December 31 of the calendar year immediately preceding the taxable year did not exceed four hundred forty thousand dollars dl:lring vmieh an exemption is claimed, of the owners, and 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 {$440,000};OO."Total combined net financial worth" shall include the value of all assets. including the present value of all equitable interests of the owner or owners and the owner's spouse. and shall exclude the fair market value of the dwelling. In addition. the value of the parcel of land upon which the dwelling is situated. up to a maximum of 1 0 acres. shall also be excluded. A pro-rated exemption shall be granted subiect to the following provisions: - 7 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. (a) Ownership: Property for which a pro-rated exemption is claimed may be iointly owned on January 1st of the taxable year by two or more individuals not all of whom are at least 65 years of age or older: however. the person or persons claiming the pro-rated exemption must be (i) 65 years of age or older. or (ii) permanently and totally disabled on December 315t of the year immediately preceding the taxable year. The ioint owners shall furnish the Director of Finance with sufficient evidence of each ioint owner's ownership interest in the dwelling. (b) Occupancy: The property must be occupied as the sole dwelling of all the ioint owners. The primary residence owned by a person otherwise qualified for exemption under this chapter who is not actually occupying the same while a patient in a hospital. nursing home, convalescent home or other facility for physical or mental care for an extended period of time shall continue to be deemed such qualifying owner's dwelling: provided. however. that such residence is not used by or leased to others for consideration. (c) Income: The gross combined income of all ioint owners during the calendar year immediately preceding the taxable year did not exceed seventy-two thousand dollars ($72,000), provided that the first seven thousand. five hundred dollars ($7,500) of income received by an owner during the calendar year immediately preceding the taxable year as compensation for permanent disability shall not be - 8 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. included in such total. "Gross combined income" includes all income from all sources of the owner or owners and of the owners' relatives living in the dwelling for which the pro-rated exemption is claimed, including (by way of example and not limitation) interest income. dividend income and distributions from trusts and lRAs. provided that the first ten thousand dollars ($10.000) 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. (d) Net Worth: The total combined net financial worth of all ioint owners as of December 315t of the calendar year immediately preceding the taxable year did not exceed five hundred thousand dollars ($500,000). Beginning as of December 31. 2008. and as of December 31 st of each year thereafter. the limit on combined net financial worth shall be increased by an amount equivalent to the percentage increase in the Consumer Price Index. "Total combined net financial worth" shall include the value of all assets. including the present value of all equitable interests. of the owners and the owners' spouses. and shall include the fair market value of the dwelling. the land. and any other asset. 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 - 9 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. Leesburg, Virginia, 1976, as amended, and to be applied retroactively to January 1, 2008, be and the same is hereby amended to read as follows: Sec. 17-1.5. Claiming an exemption. (a) The person or persons claiming an exemption must file an Application for Real Estate Tax Exemption and Affidavit with the Director of Finance, on forms supplied by the Director, on or before April 15t of the tax year for which relief is sought. Those applying forf~ tri annual application and annual certifioation process is hereby established. The person or persons elaimil'lg an exemption for the first time shall must file a real estate tax exemption affida'/it 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. Every third year from the date of the original Application. the person or persons claiming an exemption must file a new Application and Affidavit with the Director. For the two years following the date of the original Application and all subsequent Applications. the person or persons claiming an exemption must file a Certification. on forms supplied by the Director, stating their combined gross income and the total combined net worth of the owners and spouses. Thereafter, a new affidavit must be filed once every three years. After January 1, but not later than .\pril1 of the second and third years, the person or persons participating in the exemption program must file '.vith - 10- AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. 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 aAffidavit 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 tetalgross combined income and the total ftet-combined net financial worth of the owners and spouses. If an applicant is under the age of 65, the affidavit shall ha'ie attached thereto the certification, set forth in Section 17 1.1, that such applicant is permanently and totally disabled. (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 17-1.6 (AMOUNT 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, and to be applied retroactively to January 1, 2008, be and the same is hereby amended to read as follows: Sec. 17-1.6 Amount of Exemption. (a) Amount of Full Exemption: The person or persons qualifying for and claiming aft full exemption shall be relieved of all real estate tax liability for that portion of the - 11 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. real estate tax levied on the qualifying dwelling and the land on which it is situated, not exceeding three acres as set forth below. Annual Household Income Amount of Exemption Extent of Exemption (not includinl!: allowable deductions) Up to $72,000 100% Dwelling and the land on which it is situated. not to exceed 3 acres Over $72,000 0% None (b) Amount of Pro-Rated Exemption: The amount by which the person or persons qualifying for and claiming the pro-rated exemption shall be relieved of liability for real estate taxes levied on the qualifying dwelling and the land on which it is situated shall be calculated by multiplying the amount of the full exemption that would otherwise have been provided by a fraction that has as the numerator the percentage of ownership interest in the qualifying dwelling and the land on which it is situated held by all such ioint owners who are at least 65 years of age and as the denominator. 100%. SECTION VI. 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, and to be applied retroactively to January 1, 2008, be and the same is hereby amended to read as follows: - 12 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. Sec. 17-1.7. PF9Fati9BAdiustment upon chane:e in elie:ihilitv. Notwithstanding Sec. 17 1.8, ilf the qualifying property is sold, ceases to be the primary residence of the qualifying owner( s ), or if the last qualifying owner dies during the taxable year, the exemption granted hereunder shall be adiusted by pro:rating eEl it for that portion of the taxable year prior to the date on which the property was sold or ceased to be the death of the last qualifying owner's primary residence. or the date of death of the last qualifying owner. Such prorated adiustment The proceeds of the sale which '.vould result in the prorated exemption shall be based upon the number of complete months of the year that such property was properly eligible for the relief granted by this chapter. not be included in total combined income or net eombined financial worth. Such prorated portion shall be determined by multiplying the amount of the exemption by a fraction wherein the nl:lIl'lber 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 VII. Section 17-1.8 (CHANGES IN STATUS) of Article I (IN GENERAL) of Chapter 17 (TAXATION AND LICENSES) of the Code of the Town of Leesburg, Virginia, 1976, as amended, and to be applied retroactively to January 1, 2008, be and the same is hereby amended to read as follows: Sec. 17-1.8 Changes in status. - 13 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. (a) The primary residence owned by a person otherwise qualified for exemption under this chapter who is not actually occupying the same while a patient in a hospital. nursing home, convalescent home or other facility for physical therapy or mental care for an extended period of time, not intended to be permanent. shall continue to be deemed such qualifying owner's dwelling: provided. however. that such residence is not used by or leased to others for consideration. (b) Except as provided in Section 17 -1.8( a). above. cGhanges with respect to income, financial worth, ownership of property, medical status or other factors occurring during the taxable year for which the aAffidavit 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 taxable year immediately following. SECTION VIII. Section 17-1.9 (FALSE CLAIMS) of Article I (IN GENERAL) of Chapter 17 (TAXATION AND LICENSES) of the Code of the Town of Leesburg, Virginia, 1976, as amended, and to be applied retroactively to January 1, 2008, be and the same is hereby amended to read as follows: Sec. 17-1.9 False claims. No person shall intentionally make a false claim for an exemption. Any person or persons falsely claiming exemption or deferral shall be guilty of a misdemeanor and, - 14 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. upon conviction thereof, shall be fined not less than $50.00 nor more than $300.00 for each offense. In addition to the penalties provided by law. any person who intentionally makes a false claim for an exemption shall not be entitled to the exemption from taxation. if granted. but shall be liable for the full amount of tax due. In addition, such person shall be disqualified from re-applying for an exemption for a period of two years. SECTION IX Section 17-2.1 (PAYMENT OF TAX) of Article I (IN GENERAL) of Chapter 17 (TAXATION AND LICENSES) of the Code of the Town of Leesburg, Virginia, 1976, as amended, and to be applied retroactively to January 1, 2008, be and the same is hereby amended to read as follows: Sec. 17-2.1 Payment of tax. (a) Real estate. Except for Public Service Corporations, ppayment of taxes due and owing to the town for real estate shall be paid by, or on behalf of, persons owing such taxes on a semiannual basis. One-half the amount due and owing shall be paid by June 5 of the tax year and one-half the amount due and owing shall be paid by the next following December 5. Payment of taxes for Public Service Corporations due and owing to the town for real estate shall be paid by, or on behalf of, persons owing such taxes by October ~ - 15 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. (b) Personal property and machinery and tools. Except for motor vehicles and trailers, payment of taxes due and owing to the town for personal property and machinery and tools shall be paid by, or on behalf of, persons owing such taxes by October 5 following the date on which there is to be filed by, or on behalf of, such person a tax return indicating the amount of such taxes due and owing on any such property. (c) Pro-ration of tax on motor vehicles and trailers. Personal property tax shall be levied upon motor vehicles and trailers which have a situs within the town as of January 1 of any tax year. Personal property tax shall be levied upon motor vehicles and trailers which acquire a situs within the town after January 1 of any tax year for the remaining portion of the tax year. Payment of taxes for any motor vehicle or trailer for which a return is filed on or before June 15 of a tax year shall be paid by October 5 of the tax year. Payment of taxes for any motor vehicle or trailer for which a return is filed after June 15 of a tax year shall be paid by January March15 of the ensuing tax year. When a motor vehicle or trailer loses its situs in the town or changes ownership after January 1 of the tax year, any tax assessed on such vehicle shall be relieved, and any amount of the tax already paid shall be refunded, on a pro-rated basis for the remaining portion of the tax year. - 16 - AN ORDINANCE: AMENDING SECTIONS 17-1.2 THROUGH 17.1-9 AND SECTION 17- 2.1 OF THE TOWN CODE RELATING TO A TAX EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS AND CHANGING DATES FOR PAYMENT OF CERTAIN REAL ESTATE AND PERSONAL PROPERTY TAXES. For purposes of this section, pro-ration shall be determined on a monthly basis, with a period of one-half of a month or more counted as a full month and a period of less than one-half of a month not counted as a month. A motor vehicle or trailer is exempt from taxation under this section for any tax year or portion thereof during which it was assessed by another jurisdiction in the commonwealth and on which the tax has been paid. SECTION X. This Ordinance shall become effective upon the date and at the time of its final passage. SECTION XI. 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 lih day of February 2008. ~\)Q~ . C. U stattd, Mayor Town of Leesburg