20041026 2004-22ORDINANCE NO. 2004-22
AN ORDINANCE AMENDING DIVISION 3, ARTICLE II,
CHAPTER 90 OF THE CODE OF THE CITY OF FAIRFAX,
VIRGINIA, PERTAINING TO TAX EXEMPTIONS FOR
THE ELDERLY OR DISABLED.
DIVISION 3. EXEMPTIONS FOR ELDERLY OR DISABLED*
*Editor's note: Ord. No. 2003-19, adopted Sept. 23, 2003, amended div. 3 in its
entirety and enacted similar provisions as set out herein. The former div. 3 derived
from Code 1978, §§ 8-29--8-37; and Ord. No. 2002-5, adopted Jan. 22, 2002.
Sec. 90-71. Definitions.
For the purpose of this division, the following words and phrases shall have the
meanings respectively ascribed to them by this section:
Affidavit means the real estate tax exemption, deferral or freeze affidavit, or
written statement, which shall include all information required in this division.
City manager means the city manager, or the city manager's authorized
representative.
Dwelling means the full-time residence of the person or persons claiming
exemption.
Permanently and totally disabled means 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.
Property means real property.
Taxable year means the calendar year, from January 1 until December 31, for
which exemption is claimed.
Tax deferral shall mean a total or partial deferral of real estate taxes assessed
on real property occupied by a taxpayer qualified under the terms of this division. The
amount of such taxes so deferred shall become due and payable at a later date in
accordance with the provisions set forth in this division, and shall constitute a lien
upon the real estate.
Tax exemption means the full or partial exemption from real estate taxes
assessed on real property occupied by a taxpayer qualified under the terms of this
division. No lien against the property shall accrue as a result of the amount certified as
exempt.
Tax freeze refers to the total exemption of that portion of the real estate tax
which represents the increase in such tax since the taxpayer initially qualified for
exemption under this division, so that the taxpayer's real estate tax will be frozen at the
amount assessed in the fiscal year in which the taxpayer initially qualifies.
(Ord. No. 2003-19, 9-23-2003)
Sec. 90-73. Administration of division.
The tax exemption, tax deferral, tax freeze, or combination of freeze and
deferral shall be administered by the city manager according to the provisions of this
division. The city manager is hereby authorized and empowered to prescribe, adopt,
promulgate and enforce rules and regulations in conformance with the provisions of
this division, including the requirement of answers under oath, as may be reasonably
necessary to determine qualifications for tax exemption, tax deferral, tax freeze, or
combination of freeze and deferral as specified by this division, including qualification
as permanently and totally disabled. The city manager may require the production of
certified federal tax returns and appraisal repons to establish income or financial
worth.
(Ord. No. 2003-19, 9-23-2003)
Sec. 90-74. Criteria for exemption.
Tax exemption, tax deferral, tax freeze, or a combination of freeze and deferral
shall be granted to persons who qualify under the following provisions:
(1) The title of the property for which exemption is claimed must be
vested on January 1 of the taxable year, wholly or partially in the name
of the person or persons claiming exemptions.
(2) The head of the household occupying the dwelling as his sole
dwelling and in whose name, title, or an interest in title, is vested must,
on December 31 of the year immediately preceding the taxable year, be
either (i) 65 years of age or older, or (ii) permanently and totally
disabled.
(3) The gross combined income of the owner during the year
immediately preceding the taxable year must be determined by the city
manager to be an amount not in excess of $52,000.00.
(4) The net combined financial worth, including equitable interests,
as of December 31 of the immediately preceding taxable year, of the
owner, and of the spouse of any owner, excluding the value of the
dwelling and the land, not exceeding one acre, upon which it is
situated, must not exceed $340,000.
(Ord. No. 2003-19, 9-23-2003)
Sec. 90-75 Application.
(a) Each person or persons claiming any exemption, deferral or freeze under
this division shall file an affidavit or written statement with the city manager
not later than April 15. The affidavit shall set forth, in a manner prescribed by
the city manager, the name of the owner and of the related persons occupying
the dwelling for which exemption is claimed, their gross combined income and
their total combined net worth. If such person is under 65 years of age, such
form shall have attached thereto 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 in Code of Virginia,
§ 58.1-3217. The affidavit shall also include an indication as to whether the
person or persons intends to claim either tax exemption, tax deferral, tax
freeze, or a combination of tax freeze and deferral. Each affidavit or written
statement filed pursuant to this section shall be deemed valid for a period of
three years; provided, however, that each year during the three-year period and
within the time requirement for filing affidavits, the person or persons claiming
tax exemption, tax deferral, tax freeze or a combination of tax freeze and
deferral shall file with the city manager a certification that the information
contained on the affidavit has not changed or that, if any change has occurred,
that such change does not serve to violate the limitations and conditions
provided in this division.
(b) If after audit and investigation, the city manager determines that the
owner is qualified for any tax exemption, tax deferral, or tax freeze, he shall so
certify to the treasurer of the city who shall deduct the appropriate amount
from the claimant's real estate tax liability.
(c) The city manager shall also make any other reasonably necessary inquiry
of persons seeking any exemption, deferral, or freeze under this division,
requiring answers under oath, to determine qualifications as specified herein,
including qualification as permanently and totally disabled as defined in Code
of Virginia, § 58.1-3217, and qualification for the exclusion of life insurance
benefits paid upon the death of an owner of a dwelling, or as otherwise
specified herein. The city manager may also require the production of certified
tax returns to establish the income or financial worth of any applicant for tax
relief or deferral.
(Ord. No. 2003-19, 9-23-2003)
Sec. 90-76. Amount of exemption/deferral/freeze.
When a person claiming any exemption, deferral or freeze under this division
conforms to the standards and limitations set forth in this division, the tax exemption,
deferral, or freeze shall be as shown for the selected category:
Basic tax relief.
TABLE INSET:
Income
$0--40,000
$40,001--46,000
$46,001--52,000
Exemption
OO%
50%
25%
Tax deferral. The person or persons qualifying for and claiming tax deferral
shall be allowed to defer payment of 100 percent of all real estate taxes assessed by
the city against the real estate until payment becomes due as provided herein.
The accumulated amount of taxes deferred shall be paid without penalty, plus
an interest rate equal to the city's average rate of return on investments in the calendar
year immediately preceding the assessment of the deferred tax, not to exceed a
maximum of eight percent per annum, to the treasurer of the city by the owner at any
time prior to or upon the sale of the dwelling, or from the estate of decedent within
one year from the death of the last owner thereof who qualifies for tax deferral by the
provisions of this division. Such deferred real estate taxes shall constitute a lien upon
the real estate as if they had been assessed without regard to the deferral permitted by
this division; provided, however, that such liens shall, to the extent that they exceed
the aggregate ten percent of the price for which such real estate is sold, be inferior to
all other liens of record.
Accumulated deferred taxes, together with the interest thereon, shall not
exceed 33 percent of the assessed value of the property. If in any year a person who is
otherwise eligible under the conditions and limitations of this article for a deferral has
accumulated deferred taxes together with the interest thereon, which would exceed 33
percent of the assessed value of the property, such person shall be entitled to an
exemption for that portion of tax which would exceed 33 percent of the assessed value
of the property.
Tax freeze. The tax freeze option is available to all qualifying taxpayers. Taxes
will be frozen at the amount assessed in the year in which the taxpayer initially
becomes qualified under the income and asset parameters set forth in this division.
If, for any year following the initial qualification of a taxpayer for a tax freeze,
the total amount of property taxes assessed by the city falls below the freeze level, or
such taxpayer becomes disqualified for any other reason, a subsequent application for
exemption by such taxpayer may be filed, and shall be treated as an initial application
for purposes of determining the tax freeze amount.
Combination tax freeze/tax deferral. Any qualifying person may elect to
participate in the combination tax freeze/tax deferral program. Through this program,
taxes will be frozen at the amount assessed in the year in which the taxpayer initially
becomes qualified under the income and asset parameters set forth in this division, and
the taxpayer may also defer the amount of tax over and above the freeze level subject
to all deferral regulations as outlined in the previous section.
(Ord. No. 2003-19, 9-23-2003)
Sec. 90-77. Changes in circumstances.
Changes in income, financial worth, ownership of property or other factors
occurring during the taxable year for which an affidavit is filed and having the effect
of exceeding or violating the limitations and conditions provided in this article shall
nullify any exemption, deferral, tax freeze, or combination thereof, for the remainder
of the current taxable year and the taxable year immediately following.
(Ord. No. 2003-19, 9-23-2003)
Sec. 90-78. Records generally.
For recordkeeping purposes, all exemptions, deferrals and freezes granted
under the provisions of this division will be handled as expenditures on the official
books with a credit being made to the revenue section of the budget thereby not
affecting the collection record of the city.
(Ord. No. 2003-19, 9-23-2003)
Sec. 90-79. Penalties for violation of division.
Any person or persons falsely claiming an exemption shall be guilty of a
misdemeanor and, upon conviction thereof, shall be fined not less than $50.00 nor
more than $500.00 for each offense.
(Ord. No. 2003-19, 9-23-2003)
Secs. 90-80--90-95. Reserved.
BE IT FURTHER ORDAINED that this ordinance shall become effective upon adoption
as provided by law.
INTRODUCED:
PUBLIC HEARING:
ENACTED:
ATTEST:
October 12, 2004
October 26, 2004
October 26, 2004
DATE
City Clerk
VOTE
Councilwoman Cross
Councilman Greenfield
Councilwoman Lyon
Councilman Rasmussen
Councilman Silverthome
Councilmember Winter
aye
aye
aye
aye
aye
aye