2009-13
ORDINANCE NO. 2009-13
AN ORDINANCE AJVlENDING DIVISION 3, ARTICLE II,
CHAPTER 90 OF THE CODE OF THE CITY OF FAIRFAX,
VIRGINIA, PERTAINING TO TAX EXEJVlPTIONS FOR
THE ELDERLY OR DISABLED.
DIVISION 3. EXEJVU>TIONS FOR. ELDERLY OR. DISABLEI>*
*Edi'tor.s not:e: Ocd. No. 2005-21,. adopted Nov. 29,. 2005" amended divA 3 in its ent:irety and enact-cd
similar provisions as set: out: herein. The former divA 3 derived from Ord. nCL 2003-19" adopted Sept.
23,2003; and Ord. No. 2004-22, adopted Oct. 26, 2004.
Sec~ 90-71. Definition.s.
For the purpose oT this division" the f'oJ1c>vving v.rords and phrases shall have the rneanings
respect:ively ascribed to them by this section:
Affidavit means t:he real estate tax exemption" deferral or f"reeze 8f'fidavit:,. or vvritte:n staten-.ent"
""hieh shall include all information required in this division.
C-'ity nu:znager means the cit:y manager" or the city manager's authorized representative.
I:>-l-velling means 1:he rull-1:ime residence or1:he person or persons claiming exernption_
Pernu::znenrly and rora//y disabled means unable to engage in any subs1:an1:ial gainful activity
by reason of any medically determinable physical or mental impairment or derormity '\Nhich can be
expected 1:0 result in death or can be expected to last: for the durat:ion of such person's lit-e.
Properry means real property.
Taxable year means the calendar year,. from January
exempt:ion is claimed.
unt:il December 31,. Tor v.,;hich
Tax deferral shall mean a to1:al or partial dererral of real estate taxes assessed on real property
occupied by a 1:axpayer qualified under t:he terms oT 1:his division. The amoun1: or such taxes so
deferred shall become due and payable at a later dat:e in accordance vvit:.h the provisions set Torth in this
division,. and shall constitute a lien upon the real es1:a1:e.
Tax exernprion means the rull or partial exemption rrom real estate t:axes assessed on real
property occupied by a taxpayer qualified under the 1:erms of" this division. No lien against the property
shall accrue as a result o:rthe amount certified as exempt.
Tax freeze rerers t:o the total exemption o:r tha1: portion of" t:he real est:at:e 1:ax vvhich represents
the increase in such 1:ax since 1:he taxpayer initially qualified for exemption under this division,. so that
the 1:axpayer's real estate tax vvill be frozen at the amount assessed in t:he fiscal year in V'rrtIhich the
taxpayer initially qualifies.
(Ord. No. 2005-21, 11-29-2005)
Sec. 90-72. Qualificat:ions Cor exempt:ion generally.
Real estate tax exemption,. tax def"erral" tax freeze" or a con"l.bination o:r freeze and delerral,. is
hereby provided for property oV'rrtlners,. vvho are eligible according t:o the terlTlS of this division and
either (i) are not less than 65 years or age" or (ii) are determined to be permanently and totally
disabled. Persons qualifYing for such exemption,. def"erral,. freeze,. or combinat:ion or freeze and de"terral
are deemed to be bearing an extraordinary real estate1:ax burden in relat:ion t:o t:heir income and
financial vvorth.
(Ord. No. 2005-21, 11-29-2005)
Sec. 90-73. Administ:rat:ioD of" divisioD.
The 1:ax exemption" tax deferral,. tax freeze,. or cOlnbination or freeze and deferral shall be
administered by the city manager according t:o the provisions of this division. The city manager is
hereby aut:horized and empovvered to prescribe" adop1:" promulgate and enforce rules and regulations in
con-rormance V'rrtIith t:he provisions of 1:his division" including t:he requirernent of ansvvers under oath,. as
may be reasonably necessary to determine qualifications for tax exemption~ tax deferral.,. tax -rreeze,. or
combination or 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 reports to establish income or financial worth.
(Ord. No. 2005-21, 11-29-2005)
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.
(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
$340,000.00.
(Ord. No. 2005-21, 11-29-2005)
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, 9 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, 9 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. 2005-21, 11-29-2005)
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:
ncome
Exemption
$0-32,000
100%
$32,001 - 42,000
50%
$42,001 -52,000
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. 2005-21, 11-29-2005)
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. 2005-21, 11-29-2005)
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. 2005-21, 11-29-2005)
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. 2005-21, 11-29-2005)
Secs.90-80--90-95. Reserved.
BE IT FURTHER ORDAINED that this ordinance shall become effective upon adoption as
provided by law.
INTRODUCED: May 12,2009
PUBLIC HEARING: May 26, 2009
ENACTED: May 26, 2009
ATTEST:
~--t!f
City Clerk
VOTE:
G~~~~
Mayor
{;jgj;f
I If::> ATE
The vote on the motion to approve was recorded as follows:
Votes
Mayor Lederer
Councilmember Cross
Councilman Drummond
Councilman Greenfield
Councilman Meyer
Councilman Rasmussen
Councilman Stombres
Aye
Absent
Nay
Absent
Aye
Aye
Nay