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2011-24 ORDINANCE NO. 2011 -24 AN ORDINANCE AMENDING CHAPTER 90, ARTICLE II, DIVISION 3, SECTIONS 90 -74 AND 90 -76 OF THE CODE OF THE CITY OF FAIRFAX PERTAINING TO TAX EXEMPTION FOR THE ELDERLY OR DISABLED. BE IT ORDAINED, by the City Council of the City of Fairfax, Virginia, that Chapter 90, Article II, Division 3, Sec. 90 -74 of the Code of the City of Fairfax, Virginia, is hereby amended as follows: 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 $62,000. 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. BE IT FURTHER ORDAINED, by the City Council of the City of Fairfax, Virginia, that Chapter 90, Article II, Division 3, Sec. 90 -76 of the Code of the City of Fairfax, Virginia, is hereby amended as follows: 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 Exemption $0- 32,000 42,000 100% $32,001 42,000 $42,001 — 52,000 50% $42,001 52,000 $52,001 — 62,000 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. BE IT FURTHER ORDAINED that this ordinance shall become effective upon adoption as provided by law. Introduced: October 25, 2011 Public hearing: November 8, 2011 Enacted: November 8, 2011 r ayor /zi � ate ATTEST: City Clerk Votes Councilman Drummond Aye Councilman Greenfield Aye Councilman Meyer Aye Councilmember Schmidt Aye Councilman Silverthorne Aye Councilman Stombres Aye