ORDINANCE NO. 07-15(1)

 

AN ORDINANCE TO AMEND CHAPTER 15, TAXATION, ARTICLE VII, REAL ESTATE EXEMPTION FOR CERTAIN ELDERLY AND DISABLED PERSONS, OF THE CODE OF THE COUNTY OF ALBEMARLE, VIRGINIA

 

BE IT ORDAINED By the Board of Supervisors of the County of Albemarle, Virginia, that Chapter 15, Taxation, Article VII, Real Estate Exemption for Certain Elderly and Disabled Persons, is hereby amended and reordained as follows:

 

By Amending:

Sec. 15-702       Definitions

Sec. 15-704       Persons eligible for exemption

Sec. 15-705       Amount of exemption

 

CHAPTER 15.  TAXATION

 

ARTICLE VII.  REAL ESTATE TAX EXEMPTION FOR

CERTAIN ELDERLY AND DISABLED PERSONS

 

Sec. 15-702 Definitions.

 

            The following definitions shall apply in the interpretation and enforcement of this article:

 

            (1)  Dwelling.  The term “dwelling” means a building occupied as a residence.

 

            (2)  Income.  The term “income” means the total gross income from all sources comprising the amount of money received on a regular basis which is available to meet expenses, regardless of whether a tax return is actually filed, the money is taxable or deductible from the taxpayer’s income tax return.

 

                        (a)        Income shall include: (i) retirement payments, including the portion that represents the contribution of the retiree; (ii) nontaxable social security retirement benefits; (iii) disability payments; and (iv)  rental income.

 

                        (b)        Income shall not include: (i) life insurance benefits; (ii) receipts from borrowing or other debt; and (iii) social security taxes taken out of the pay of a retiree.

 

                        (c)        The income of a self-employed person received from the business shall be the gross income of the business, less the expenses of the business.

 

            (3)  Manufactured home.  The term “manufactured home” means a structure subject to federal regulation which is transportable in one or more sections; is eight (8) body feet or more in width and forty body feet or more in length in the traveling mode, or is three hundred twenty (320) or more square feet when erected on site; is built on a permanent chassis; is designed to be used as a single-family dwelling, with or without a permanent foundation, when connected to the required utilities; and includes the plumbing, heating, air conditioning, and electrical systems contained in the structure.

 

            (4)  Net combined financial worth.  The term “net combined financial worth” means the net present value of all assets, including equitable interests, and liabilities of (i) the owners, (ii) the spouse of any owner, and (iii) the owner’s relatives living in the dwelling.  The term “net combined financial worth” shall not include: (i) the value of the dwelling and the land, not exceeding five ten acres, upon which it is situated; (ii) the value of furniture, household appliances and other items typically used in a home; and (iii) the outstanding balance of any mortgage on the subject property, except to the extent that the subject property is counted as an asset.

 

            (5)  Owning title or partial title.  The term “owning title or partial title” means owning the usufruct, control or occupation of the real estate, whether the interest therein is in absolute fee or is in an estate less than a fee, such as the holding of a life estate.

 

            (6)  Permanently and totally disabled person.  The term “permanently and totally disabled person” means a person who is 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.

 

            (7)  Real estate.  The term “real estate” includes manufactured homes.

 

            (8)   Relative.   The term “relative” means any person who is a natural or legally defined offspring, spouse, sibling, grandchild, grandparent, parent, aunt, uncle, niece, or nephew of the owner.

 

            (9)  Taxable year.  The term “taxable year” means the calendar year for which the exemption is claimed.

 

            (10)  Total combined income.  The term “total combined income” means the income received from all sources during the preceding calendar year by the owners of the dwelling who use it as their principal residence and by the owners’ relatives who live in the dwelling.  The following amounts shall be excluded from the calculation of total combined income:

 

(a)        The first sixty-five hundred dollars ($6500.00) of income of each relative who is not the spouse of an owner living in the dwelling and who does not qualify for the exemption provided by subdivision 9 c hereof.

 

(b)        The first seventy-five hundred dollars ($7500.00) of income for an owner who is permanently disabled.

 

(c)        If a person otherwise qualifies for the exemption and if the person can prove by clear and convincing evidence that the person's physical or mental health has deteriorated to the point that the only alternative to permanently residing in a hospital, nursing home, convalescent home or other facility for physical or mental care is to have a relative move in and provide care for the person, and if a relative does move in for that purpose, then none of the income of the relative or of the relative’s spouse shall be counted towards the income limit, provided that the owner of the dwelling has not transferred assets in excess of five thousand dollars ($5,000.00) without adequate considerations within a three (3) year period prior to or after the relative moves into the dwelling.

 

(2-15-73; 3-20-75; 11-9-77; 8-13-80; Ord. of 12-19-90; Ord. of 4-7-93; Code 1988, § 8-23; Ord. 98-A(1), 8-5-98; Ord. 03-15(2), 11-5-03; Ord. 05-15(4), 12-7-05, effective 1-1-06)

 

            State law reference--Va. Code §§ 36-85.3, 58.1-3210, 58.1-3211, 58.1-3217.

 

Sec. 15-704 Persons eligible for exemption.

 

            Persons who satisfy all of the following requirements are eligible for the exemption established in section 15-703:

 

            A.         The person claiming the exemption shall have either:

 

            1.         Reached the age of sixty-five (65) years prior to the taxable year for which the exemption is claimed; or

 

            2.         Became permanently and totally disabled prior to the taxable year for which the exemption is claimed.

            B.         The person claiming the exemption shall be a person owning title or partial title in the dwelling.

 

            1.         The person claiming the exemption shall own title or partial title to the real estate for which the exemption is claimed on January 1 of the taxable year.

 

            2.         A dwelling jointly owned by a husband and wife may qualify if either spouse is sixty-five (65) years of age or older or is permanently and totally disabled.

 

            3.         Except as provided in paragraph (B.2), the exemption shall not apply to a dwelling jointly owned by a person who is sixty-five (65) years of age or older or who is permanently and totally disabled (an “exempt person”), and a person who not an exempt person.

 

            C.         The person claiming the exemption shall occupy the dwelling as that person’s sole dwelling.

 

            1.         The dwelling shall not be used for commercial purposes.

 

            2.         The fact that a person who otherwise qualifies for exemption established by this article resides in a hospital, nursing home, convalescent home or other facility for physical or mental care for extended periods of time shall not be construed to mean that the real estate for which the exemption is sought does not continue to be the sole dwelling of the person during such extended periods of other residence so long as such real estate is not used by or leased to others for consideration.

 

            D.         A manufactured home is real estate eligible for the exemption established by this article if the person claiming the exemption demonstrates to the satisfaction of the director of finance that the manufactured home is permanently affixed.  Either of the following shall be evidence that the manufactured home is permanently affixed:

 

            1.         The person claiming the exemption owns title or partial title to the manufactured home and the land on which the manufactured home is located, and the manufactured home is connected to permanent water and sewage lines or facilities; or

 

            2.         Whether or not the manufactured home is located on land on which the person claiming the exemption owns title or partial title, the manufactured home rests on a permanent foundation and consists of two (2) or more units which are connected in such a manner that they cannot be towed together on a highway, or consists of a unit and other connected rooms or additions which must be removed before the manufactured home can be towed on a highway. 

 

            E.         The total combined income shall not exceed fifty thousand dollars ($50,000.00) sixty-nine thousand four hundred fifty-two dollars ($69,452.00) for the calendar year immediately preceding the taxable year.

 

            F.         The net combined financial worth shall not exceed one hundred twenty-five thousand dollars ($125,000.00) two hundred thousand dollars ($200,000.00) as of December thirty-first of the calendar year immediately preceding the taxable year.

 

(2-15-73; 3-20-75; 11-9-77; 8-13-80; 6-12-85; 5-13-87; Ord of 12-19-90; Ord. of 4-7-93; Ord. 96-8(2), 12-11-96; Code 1988, § 8-26; 9-9-81; Ord. 12-19-90; Code 1988, § 8-26.1; Ord. 98-A(1), 8-5-98; Ord. 00-15(2), 9-20-00; Ord. 03-15(2), 11-5-03; Ord. 04-15(2), 12-1-04, effective 1-1-05; Ord. 06-15(3), adopted 11-1-06, effective 1-1-07)

 

            State law reference--Va. Code §§ 58.1-3210, 58.1-3211, 58.1-3212, 58.1-3214, 58.1-3215.

 

 

 

Sec. 15-705 Amount of exemption.

 

            The amount of the exemption established by this article from the real estate tax for any taxable year shall be as follows:

 

Percentage of Real Estate Tax Exempted

 

 

Net Combined Financial Worth

$0- $85,000

$85,001-$105,000

$105,001-$125,000

Total Combined Income

$0-$20,000

100.0%

90.0%

80.0%

$20,001-$30,000

75.0%

67.5%

60.0%

$30,001-$40,000

50.0%

45.0%

40.0%

$40,001-$50,000

25.0%

22.5%

20.0%

Over $50,000

0.0%

0.0%

0.0%

 

 

 

 

Net Combined Financial Worth

$0 to $100,000

Over $100,000 to $150,000

Over $150,000 to $200,000

Total Combined Income

$0 to $30,000

100.0%

90.0%

80.0%

Over $30,000 to $50,000

70.0%

60.0%

50.0%

Over $50,000 to $69,452

40.0%

30.0%

20.0%

 

(2-15-73; 11-9-77; 8-13-80; Ord. of 12-19-90; Ord. of 4-7-93; Code 1988, § 8-27; Ord. 98-A(1), 8-5-98; Ord. 00-15(2), 9-20-00; Ord. 04-15(2), 12-1-04; Ord. 06-15(3), adopted 11-1-06, effective 1-1-07)

 

            State law reference--Va. Code § 58.1-3212.

 

This ordinance shall be effective on and after January 1, 2008.

 

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