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2022-24ORDINANCE NO.2022-24 AN ORDINANCE AMENDING CHAPTER 90 (TAXATION), ARTICLE H (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 de f-a' twc f ooze affi a-vit, 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, twE dog ri-a', or tax f ooze is claimed. Tax deftpr-al shall mean a tetal of partial defi�ffg of r-ea4 estate taxes assessed on prop eeeupied by a tax-payef who "alifies under- the tefms of this division. The amount of sueh twEes so defeffed shall beeome Elue and payable at a latef: date in aeeofdanee with the pr-ovisions set fet4h in this 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. twTayer!s real es4ate tax will be fFezeft at the ameu-FA assessed ia the taxable yeaf in whieh th taxpayer- initially quelifies. Sec. 90-72. Qualifications for exemption generally; limitation on retroactive determination. Tax exemption, 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 exemptionta* deferral, twE ffeez,or- eembination of tWE ffeeze and tax def 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 de f "a or *a� 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 the limitation that any tax exemption, tax de f ri-a' er tax &ee,e 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, + a r ', twi rFeeze, or- eembinationf tWE freeze and tax defe' 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 de f �', *^�E fteeze, 0r eombination of tax &ooze and tax de f ri ^' 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 defemr-a4twi ffeezeereoatien of freeze and Reeffal 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 $82,000.00 $85,000.00. (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 $340,000.08 $400,000.00. Sec. 90-75. Application. (a) Each person or persons claiming any tax exemption, tax de f ff^' or tax feeze 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-,4ax def Fra er twE 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 ae f ff^', tax freeze, or- a on+bi atie of freeze -and tax de€ear 1. 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 def f-^', tax freezeor- eembinafioa of to • f eeze and *^ de€errl 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 an-�4hiag else i (b) If after audit and investigation, the city manager determines that the owner is qualified for any tax exemption, tax def ff 1, or tax fteeme, 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, ta* de f ff 1, or tax f ooze 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 exemptio . When a person claiming any exemption, de f ,... 1 or freeze under this division conforms to the standards and limitations set forth in this division, the tax exemption,- aof -ra1, of freeze- shall be as shown for the selected category: Basic Tax Relief Income Exemption $0..09 $62,009.9B $0.00 - $65,000.00 100% S65,001.00 - $75,000.00 50% 75 001.00 - $15,000.00 25% e"al to the e4y's aver -age rate of r-etufn iwvestFaei#s in the immediately on ealendar- year preeeding th ef the eity by the owner- time to the the dwelling, ffem at any prior- or- upon sale of or- the estate of of this dMsien. Sueh defeffed tffixes lien pr-ovisieffs if they had been assessed real estate to the defi�! shall eenstitu4e a Won Jay division; the real estate as that sueh lions shall, without regard to the tha+ they the peffnitted this provided, teff , for- su h real estate is sold,be eyAent exeeed i♦♦fia♦i t 11 other-liensf feeer-d. aggregate pereent of the price whi Aeeumulated d6�d assessed value of the taxes, tegethef the interest !her 33 with if in -eon, shall is not exeeed per -eel# of property. any year- a per -son who ethefwise eligible tinder- the eenditions ther,eon, whieh 33 the would e*eeed per-eent of assessed va,4,ae of the property, sueh per -son shall b the cy. 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, twE aof ri-a , *ax freeze, o- ,,,,^ mini, thereof for the remainder of the current taxable year and the taxable year immediately following. An owner may enter into and stay in a hospital, nu in home reha '1't tion center, or assisted living facility as long as needed without losing a previously granted tax exemption status. However. to maintain the tax exemption status the_ homeowner may not rent all sir any part of the, dwelling. for any pecuniary benefit. 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 de f ffa tax fteeze 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 be effective as provided by law. INTRODUCTION: November 29, 2022 PUBLIC HEARING: December 13, 2022 ENACTED: December 13, 2022 VOTE: City Clerk Mayor Meyer Aye Councilmember Harmon Aye Councilmember Lim Aye Councilmember Miller Aye Councilmember Ross Aye Councilmember Stehle Aye Councilmember Yi Aye 4 ,c�.9ty►�.ti- Mayor