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, may have higher than standard limitations.
current law provides that Fauquier County may exempt or defer the
real property tax for those elderly or disabled persons whose
income does not exceed $52,000 and a maximum net combined
financial worth, which shall exclude the value of the dwelling and
the land, not exceeding one acre upon which it is situated, of
current limitations established by the Board of Supervisors are
$35,000 gross income and $125,000 net worth.
The Relief for the Elderly Ordinance was last amended July
21, 1992 to reflect those amounts.
analysis of the program participation indicates that there has
been a decline in participation due largely to the eligibility
Participants Property Value Exempted
the limitation amounts have not been adjusted since 1992, it is
proposed that a revised set of limits be established, adjusted for
the general cost of living since 1992.
Using an average 3% per annum increase in the cost of
living applied to both existing amounts allows an increase from
$35,000 to $47,000 for the gross income amount and an increase
from $125,000 to $168,000 for the combined net worth.
In addition, Delegate Cole (88th District) sponsored a bill
that was adopted by the legislature that increased the amount a
relative living in the household may earn from $6,500 to $8,500.
It is proposed that this be incorporated into this
Ordinance amendment. The
change should provide an opportunity for those participants who
were previously in the program to be eligible again.
order to offset the fiscal impact of the increased limitations
while expanding the eligibility for senior citizens, an
alternative sliding scale may be employed.
The proposed sliding scale increases the lower end of the
exemption and decreases the exemption at an increased higher
amount. The table is
of Tax Relief
to $47,000 50%
to $52,000 25%
the limits to the statutory maximums.
Exempted Tax *
"B" $42,000-$52,000 sliding scale/$150,000
$0.99 tax rate
preparing the FY 2003 Budget, an allowance in the revenue estimate
was included to account for the proposed change in limitations up
to amounts estimated to accommodate proposals "A" or
"C" may have an impact up to $125,000.
It cannot be determined what the actual impact will be
until after the applications have been processed and assessments