BACKGROUND:

The Tax Relief for the Elderly and Disabled Program, as offered by Albemarle County, provides a tax exemption for the elderly and/or disabled owners of real estate and mobile homes.  The exemption is based on a matrix of income and net worth levels.

In December 2004, the Board of Supervisors approved an increase in both the income and net worth limits for the Program to the current maximum limits of $30,000 in allowable income and $90,000 in allowable assets.  Additional funding was approved by the Board in both FY 2004/05 and FY 2005/06 to fund the Program, to the current budget amount of $678,638.  Actual expenses for the two fiscal years, however, have been less than budget ($240,698 in FY 2004/05 and $291,448 in FY 2005/06).

During its discussion of the FY 2006/07 Budget, the Board directed staff to prepare an ordinance to increase the income and net worth levels to provide relief in an amount approximating the budget.  This report discusses the staff recommendation, comparisons with other jurisdictions, budget impact, and required future action.

STRATEGIC PLAN:

Goal 5. Fund the County’s future needs.

DISCUSSION:

To implement these changes to Tax Relief for the Elderly and Disabled Program to be effective for the 2007 Tax Year, staff is preparing a draft ordinance to replace the current income and net worth matrix (see Attachment A) with a new qualification matrix (see Attachment B) to increase the allowable income limit to $50,000 and allowable net worth limit to $125,000.  It is recommended that the ordinance be advertised for public hearing at the Board’s November 1, 2006 meeting.

As detailed in the chart below, localities throughout Virginia have adopted similar limits:

Locality            Population       Income                        Net Worth

Culpeper                39,100             $35,000                     $200,000

Fauquier                61,500             $52,000                     $195,000

Fluvanna               24,300              $50,000                     $100,000

Frederick         66,300             $50,000                     $100,000

Hanover               94,800              $50,000                     $125,000

James City       55,200             $35,000                     $200,000

Roanoke         88,200               $56,566                     $125,000

Spotsylvania        112,000               $50,000                     $100,000

BUDGET IMPACT:

As noted in the Discussion section, funds are available in the FY 2006/07 Budget to fund the proposed increase in the income and net worth figures.

RECOMMENDATIONS:

Staff recommends that the Board approve the revised income and net worth matrix to determine the relief percentages (Attachment B) and authorize the implementing ordinance to be set for public hearing on November 1, 2006.  Staff will be available at the Board’s meeting on October 4, 2006 to answer questions should you need to “pull” this item for discussion.

ATTACHMENTS

Attachment A – Current Tax Relief Program Matrix

Attachment B – Proposed Tax Relief Program Matrix

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