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Title 58.1-3211, Code of
Virginia, provides enabling legislation that permits
exemption and/or deferrals of real property tax levied by a
locality for qualified citizens age 65 or older, and persons
declared totally disabled. Certain limitations are set out
for use statewide. It also provides that certain
localities, including Fauquier County, may have higher than
standard limitations.
Legislation adopted by the
2006 General Assembly provides that Fauquier County may
exempt or defer the real property tax for those elderly or
disabled persons whose income does not exceed $72,000 and a
maximum net combined financial worth, which shall exclude
the value of the dwelling and the land, not exceeding twenty
five acres upon which it is situated, of $540,000. As a
part of the budget deliberations, that Board agreed to set
that limits at an income level of $58,000, a net combined
financial worth of $440,000, an increase in the relatives
income from $8,500 to $10,000, and an exemption on the land
not to exceed five acres.
The current limitations
established by the Board of Supervisors are $52,000 gross
income and $195,000 net worth. The Relief for the Elderly
Ordinance was last amended May 20, 2002 to reflect those
amounts.
PROPOSAL:
Limits
Current
Proposed
Gross Income $
52,000 $ 58,000
Net Worth
$195,000 $440,000
Relative Income $
8,500 $ 10,000
Exempted Acreage
1.0 5.0
FISCAL IMPACT:
Participation
Exempted Tax *
Current 750
$1,214,700
Estimated 830
$1,543,400
* $0.645 tax rate
During the FY07 Budget
deliberations, an allowance for the revenue reduction was
presented to account for the proposed change in limitations,
and the Budget was amended prior to adoption; therefore,
there is no additional impact to the County Administrator’s
proposed budget. In order to implement these changes, the
attached Ordinance amendment needs to be slated and set for
public hearing. |