2013-05 ORDINANCE NO. 2013-05
OF HE
ON 3,
AN ORDINANCE AMENDING CHAPTER INIA, PERTAINING TO ES ATE 90, ARTICLE II,
CODE OF THE CITY OF FAIRFAX, VIRGINIA,
PROPERTY TAX EXEMPTIONS,DEFERRALS AND FREEZES FOR CERT IN
ELDERLY AND DISABLED TAXPAYERS.
BE IT ORDAINED, by the City Council of the City of Fairfax, Virginia, t ato hate
deferrals and freezes 90,state
Article II, Division 3 of the Code s for certain eld Virginialy pertaining and disabled taxpayers, is
property tax exemptions, defer
hereby amended as follows:
"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 �' -t±re tax exemption, tax deferral or tax freeze affidavit, or
written statement, which shall include all information required in and b this division.
Cit manager means the city manager, or the city manager's authorized representative
y
or d
nee.
Dwelling means the full-time residence of the person or persons claiming exemption.
Permanently and totally disabled means unable to e n efor gainful
activity by reason of any medically determinable physical or mental impairment o
which can be expected to result in death or can be expected to last for the duratio of such
person's life.
Property means real property.
Taxable year means the calendar year, from January thio claimnd.inch.ding until
December 31,for which a tax exemption tax deferral or tax freeze s
Tax deferral shall mean a total or partial deferral of real l estate taxes xe this es.edon. feat
qualified-under property occupied by a taxpayer who qualifies payable at a later date in :ccordance
amount of such taxes so deferred shall become due and pay
with the provisions set forth in this division, and shall constitute a lien upon the .io eat feal
estate. on
Tax exemption means the full or partial exemption from under the tare taxes oft ss ssed on
al property occupied by a taxpayer who •ualifies
No lien against the property shall accrue as a result of the amount certified as exe pt. wh
Tax freeze refers to the total exemption of that portion of f dreal es at pt° uhich
represents the increase in such tax since the taxpayer initially q er
this division, so that the taxpayer's real estate tax will be frozen at the amount as essed in the
taxable € year in which the taxpayer initially qualifies.
Sec. 90-72. - Qualifications for exemption generally' limitation o retroactive
determination. combination of tax freeze
Re._.!_�±�te4Tax exemption, tax deferral,tax freeze, or ib e according ti the terms odf
tax deferral is hereby provided for property owners who a eligible
this division and either:
(1) Are not less than 65 years of age, or
(2) Are determined to be permanently and totally disabled.
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Persons qualifying f or such tax exemption, tax deferral, tax freeze, or combina ion of
tax freeze and tax deferral are deemed to be bearing an extraordinary real estate tax in
relation to their income and financial worth.
In the case of a retroactive determination of .ermanenX d ferralorrtab�free etlerwisd
meeting the re•uirements of this division the tax exemption to
pursuant to n
this division shall be a..licable for all taxable ears tohwhlinitationtthatnano tax f
.ermanent and total disabilit a.•lies sub'ect however to
exem
•tion tax deferral or tax freeze ma onl be retroacti -the aff
for
set maximum n section
taxable ears In______ mediatel-_•recedma the taxable ear m w
90-75 is .ro.erl made.
Sec. 90-73. - Administration of division.
i tion tax deferral, tax freeze, or combination of tax
ns freeze
this pand ion.tax
The tax exemption,� city according provisions deferral shall be administered by the cit manager accordin to the
adopt, promu gate and
P
The city manager is hereby authorized and empowered too prescribe,
of this division, gate and
enforce rules and regulations in conformance with the e provisions
necessary to •etermine
the requirement of answers under oath, as may
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qualifications for tax exemption, tax deferral, tax freeze, or ombianati e of tax
permanently a dand tax
deferral g qualification
deferral as specified by this division, including totally
The cit manager may require the production of certified federal tax re urns and
disabled. Y
appraisal reports to establish income or financial worth.
Sec. 90-74. - Criteria for tax exemption tam l or tax freeze.
and t'x deferral
Tax exemption, tax deferral, tax freeze, or a combination of tax freeze
h nd h de must
shall be granted to persons who qualify under the following p
be satisfied :
(1)
The title of the property for which tax exemption, tax deferral or ta. holly is
claimed must be vested on Januaryl otheer�phc cbae mingbeliQibil'_ for tax or
in partially the name of the person or P
exemption tax deferral or tax freeze an_ d such •er a o fo�anan• all taxable
.ro.ert as their sole dwellin∎ and must conrinue t
ears in which eli t ibilit under this division is claimed e=r •
(2) The
.erson or .ersons claimint eli.■ibilit under this diviof a euor o de ii
of an a.•licable tall bdisabled bn ase demons ear d b the ffidavit and
.erm any .— - .- -
su.•ortint documentation re•uired under section 90-75. : _ .
combined income of the .ers_r•ersons claimin1 elitibilit• under
(3) The gross _ __ __ _ - _ ,: _ - -
this d� � by ` '
be determined by the city manager to be an amount not in excess axabl of
ear for 00
durint the taxable ear im X aeeze .rio a..hcab e t
exemption tax deferral or to
4 The net combined financial worth, including equitable iatel interests,
•rior�of�•'li able•O 31 of the '-• •- -- • - -e•-: taxable year in taxable ear for tax exemption tax deferral ortn the freeze, of the owner
the and f not
spouse of any owner, excluding the value of
exceeding one acre, upon which it is situated, must not exceed $340,000.00.
Sec. 90-75. - Application.
ze
(a) Each person or persons claiming any tax exemption,t a c dy feral or tai Beene
under this division shall file an affidavit or written statement
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later than April 15 of the taxable year in the case of a person or persons qualifyin• under
section 90-72 1 to include annual recertifications for persons •ualif in. under that section_
and ii at an time durin! the taxable ear but as soon as practicable followin! the date that
the determination of total and permanent disability is received, in the case of a person or
persons qualifying under section 90-72(2) 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/property for which tax exemption, tax deferral or tax freeze 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 Vir 'nia, §
58.1-3217. The affidavit shall also include an indication as to whether the person or p rsons
intends to claim either tax exemption, tax deferral, tax freeze, or a combination of tax freeze
and tax deferral. Each affidavit or written statement filed pursuant to this section shall be
deemed valid for a period of three years; provided, however, that for each taxable year uring
the three-year period and within the time requirement for filing affidavits, the per on or
persons claiming tax exemption, tax deferral, tax freeze or a combination of tax freeze nd tax
deferral shall file with the city manager a certification that the information contained n the
affidavit has not changed or that, if any change has occurred, that such change does no serve
to violate the limitations and conditions provided in this division. Notwithstanding anything
else in this division to the contrary, relief available under this division shall only be applicable
to taxable year 2011 and subsequent taxable years.
(b) If after audit and investigation, the city manager determines that the o ner is
qualified for any tax exemption, tax deferral, or tax freeze, he shall so certify to the tr asurer
of the city who shall deduct the appropriate amount from the claimant's real est to tax
liability.
(c) The city manager shall also make any other reasonably necessary inq iry of
persons seeking any tax exemption, tax deferral, or tax freeze under this division, re uiring
answers under oath, to determine qualifications as specified herein, including qualifica ion as
permanently and totally disabled as defined in Code of Virginia, § 58.1-321 , and
qualification for the exclusion of life insurance benefits paid upon the death of an own-r of a
dwelling, or as otherwise specified herein. The city manager may also require the pro•uction
of certified tax returns to establish the income or financial worth of any applicant un•-r this
division for tax relief or deferral.
Sec. 90-76. - Amount of tax exemption/tax deferral/tax freeze.
When a c
erson claiming tax exemption, tax deferral or tax freeze und r this
p g an Y
division conforms to the standards and limitations set forth in this division, the tax exe ption,
tax deferral, or tax freeze shall be as shown for the selected category:
Basic Tax Relief
Income Exemption
$0.00—$42,000.00 100%
$42,001.00—$52,000.00 50%
552,001.00—$62,000.00 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
property real estate until payment becomes due as provided herein.
The accumulated amount of taxes deferred shall be paid without penalty, lus an
interest rate equal to the city's average rate of return on investments in the calend r year
immediately preceding the assessment of the deferred tax, not to exceed a maximum f eight
percent per annum, to the treasurer of the city by the owner at any time prior to or upon the
sale of the property dwelling, or from the estate of decedent within one year from the d:ath of
the last owner thereof who qualifies for relief pursuant to tax deferral by the provisions •f this
division. Such deferred real estate taxes shall constitute a lien upon the property -• - . - 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 property 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 :ligible
under the conditions and limitations of this article for a tax deferral has accumulated deferred
taxes together with the interest thereon, which would exceed 33 percent of the assessei value
of the property, such person shall be entitled to an exemption for that portion of taxi 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 till be
frozen at the amount assessed in the year in which the taxpayer initially becomes q alified
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 fre ze, the
total amount of property taxes assessed by the city falls below the tax freeze level, r such
taxpayer becomes disqualified for any other reason, a subsequent application for ex ption
by such taxpayer may be filed, and shall be treated as an initial application for purp ses of
determining the tax freeze amount.
Combination tax freeze/tax deferral. Any qualifying person may elect to partic pate in
the combination tax freeze/tax deferral program. Through this program, taxes will be f ozen at
the amount assessed in the year in which the taxpayer initially becomes qualified u der the
income and asset parameters set forth in this division, and the taxpayer may also d fer the
amount of tax over and above the freeze level subject to all deferral regulations as out fined in
the previous section.
Sec. 90-77. - Changes in circumstances.
Changes in income, financial worth, ownership of property or other factors o curring
during the taxable year for which an affidavit is filed and having the effect of exce ding or
violating the limitations and conditions provided in this division article shall nullify ny tax
exemption, tax deferral, tax freeze, or combination thereof, for the remainder of the current
taxable year and the taxable year immediately following.
Sec. 90-78. - Records generally.
For recordkeeping purposes, all relief - - •• : .:- , :- - - • • -: ---- - grant d under
the provisions of this division will be handled as expenditures on the official book with a
credit being made to the revenue section of the budget thereby not affecting the c llection
record of the city.
Sec. 90-79. - Penalties for violation of division.
Any person or persons who intentionally and falsely claims claiming .- - -- . :• a
tax exemption, tax deferral or tax freeze under this division shall be guilty of a misdtmeanor
and, upon conviction thereof, shall be fined not less than $50.00 nor more than $501.00 for
each offense.
Secs. 90-80-90-95. - Reserved."
This ordinance shall become effective as provided by law.
INTRODUCED: April 9, 2013
PUBLIC HEARING: April 23, 2013
ENACTED: April 23, 2013
it/
Mayor
3�g/3
Date
ATTEST:
City Clerk
Votes
Councilman DeMarco Aye
Councilman Drummond Aye
Councilman Greenfield Aye
Councilman Meyer Aye
Councilmember Schmidt Aye
Councilman Stombres Aye
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