COUNTY OF ALBEMARLE
Tax Relief for the Elderly and Disabled Program
Request direction from the Board regarding implementation of new income and net worth limits for the Tax Relief for the Elderly and Disabled Program
Tucker, White, Davis, Wiggans, Walters
LEGAL REVIEW: Yes
November 3, 2004
ACTION: X INFORMATION:
During the Board of Supervisors’ FY2004/2005 budget work sessions, the Board approved an increase in both the income and asset limits for the Tax Relief for the Elderly and Disabled Program. Additional FY05 funding was approved by the Board in the amount of $125,494, which would allow the limits to be raised to $30,000 in allowable income and $90,000 in allowable assets. The current ordinance provides that income cannot exceed $25,000 and net financial worth cannot exceed $80,000.
4.2. Fund County Services in a fair, efficient manner and provide needed public facilities and infrastructure.
To implement these changes to the Tax Relief for the Elderly and Disabled Program to be effective for the 2005 Tax Year, staff is preparing a draft ordinance for consideration and adoption by the Board at its December 1, 2004 meeting. At this time, staff is requesting direction from the Board on how the Board wishes to structure the increases in the income and net worth limits. The Board has at least two options:
· Revise current sliding scale - Income and net worth limits can be increased to $30,000 and $90,000, respectively, and a corresponding adjustment can be made to the scale currently being used to establish the amount of exemption based solely on the applicant’s income (See Attachment A). The advantage of this system is that it is easy to administer and explain to taxpayers. The disadvantage is that it does not take varying levels of net worth into consideration when calculating relief percentages.
· Adopt income and net worth matrix - Income and net worth limits can be increased to $30,000 and $90,000, respectively, and a matrix can be developed taking into consideration both income and net worth limits to determine the amount of exemption (See Attachment B). Several jurisdictions in the state, including the City of Charlottesville, use this type of matrix. The advantage of this system is that varying levels of net worth are considered to determine the relief percentage. This will become more critical if limits are increased in the future. The disadvantage is that it is slightly more complicated to administer and explain.
Staff recommends that the Board approve using the income and net worth matrix to determine the relief percentages (Attachment B) for the new limits that were approved by the Board last April. If the Board approves, the matrix will be incorporated into the Ordinance that will come to the Board in December for approval. Staff will be available at the Board’s meeting on November 3, 2004 to answer questions.
View Attachment A
View Attachment B
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