2021-14ORDINANCE NO.2021-14
AN ORDINANCE AMENDING CHAPTER 90 (TAXATION), ARTICLE II (REAL
PROPERTY TAXES), DIVISION 3 OF THE CODE OF THE CITY OF FAIRFAX,
VIRGINIA, PERTAINING TO TAX EXEMPTIONS 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 of the Code of the City of Fairfax, Virginia, is amended to read in its
entirety as follows:
"DIVISION 3. - EXEMPTIONS FOR ELDERLY OR DISABLED
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 tax exemption, tax deferral or tax freeze affidavit, or written
statement, which shall include all information required in and by this division.
City manager means the city manager, or the city manager's authorized representative or
designee.
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 through and including December
31, for which a tax exemption, tax deferral, or tax freeze is claimed.
Tax deferral shall mean a total or partial deferral of real estate taxes assessed on
property occupied by a taxpayer who qualifies 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 property.
Tax exemption means the full or partial exemption from real estate taxes assessed on
property occupied by a taxpayer who qualifies 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
taxable year in which the taxpayer initially qualifies.
Sec. 90-72. Qualifications for exemption generally; limitation on retroactive
determination.
Tax exemption, tax deferral, tax freeze, or a combination of tax freeze and tax deferral is
hereby provided for property owners who are eligible according to the terms of this division
and either:
(1) Are not less than 65 years of age, or
(2) Are determined to be permanently and totally disabled.
Persons qualifying for such tax exemption, tax deferral, tax freeze, or combination of
tax freeze and tax deferral are deemed to be bearing an extraordinary real estate tax burden in
relation to their income and financial worth.
In the case of a retroactive determination of permanent and total disability
otherwise meeting the requirements of this division, the tax exemption, tax deferral or
tax freeze granted pursuant to this division shall be applicable for all taxable years to
which the determination of permanent and total disability applies, subject, however, to
1
that any tax exemption, tax deferral or tax freeze may only be retroactively granted for a
maximum of two taxable years immediately preceding the taxable year in which the affidavit
set forth in section 90-75 is properly made.
Sec. 90-73. Administration of division.
The tax exemption, tax deferral, tax freeze, or combination of tax freeze and tax 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 tax freeze and tax
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.
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 $a2,QOO.QQ $72,899-90.
(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.
Sec. 90-75. Application.
(a) Each person or persons claiming any tax exemption, tax deferral or tax freeze under this
division shall file an affidavit or written statement with the city manager: (i) by no later
than April 15 of the taxable year in the case of a person or persons qualifying under
section 90-72(1) (to include annual recertifications for persons qualifying under that
section), and (ii) at any time during the taxable year, but as soon as practicable
following 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). 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 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
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
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 tax 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. 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 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 tax exemption, tax deferral, or tax 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 under this division.
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
Income
Exemption
$O.OQ—$?BBA�A 62.000.00
100%
$c�2n�ni�n�cr_�nnn nn 62,001.00 — $72,000.00
50%
$ 72,001_00 — 582�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 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, wjiich 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.
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 division shall nullify any 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 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.
Sec. 90-79. Penalties for violation of division.
Any person or persons who intentionally and falsely claims a tax exemption, tax deferral
or tax freeze under this division 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."
This Ordinance shall become effective as provided by law.
INTRODUCED: November 30, 2021
PUBLIC HEARING: December 14, 2021
ENACTED: December 14, 2021
ATTEST:
AAw� -
dl Acting City Clerk
VOTE:
Mayor Meyer
Aye
Councilmember Harmon
Aye
Councilmember Lim
Aye
Councilmember Miller
Aye
Councilmember Ross
Aye
Councilmember Stehle
Aye
Councilmember Yi
Aye
Mayor
Date
4