[Adopted 5-1-2000; amended
in its entirety 3-6-2017]
For the purpose of this article, the following terms, phrases
and words have the meanings given herein. When inconsistent with the
context, words in the present tense include the future, words in the
plural number include the singular, and words in the singular number
include the plural number. The word "shall" is always mandatory and
not merely directory.
An individual who is permanently and totally disabled so
as to be 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 which can be expected
to last for the duration of such person's life. A person receiving
benefits from the Social Security Administration pursuant to 42 U.S.C.
§ 423(d) shall be deemed disabled.
A person who has reached the age of 65 years as of December
31 of the preceding year.
The sole dwelling jointly held by a husband and wife, with
no other joint owners, may qualify if either spouse is 65 or over
or is permanently and totally disabled, and the proration of the exemption
under § 58.1-3211.1 shall not apply for such dwelling
The computation of annual income shall be based on adding
together the income received during the preceding calendar year, without
regard to whether a tax return is actually filed, by (i) owners of
the dwelling who use it as their principal residence, (ii) owners'
relatives who live in the dwelling, except for those relatives living
in the dwelling and providing bona fide caregiving services to the
owner whether such relatives are compensated or not.
The total income shall not exceed $25,000 per year, with
the first $5,000 of a relative's income living within the household
being exempt as far as eligibility for the tax exemption.
The sole dwelling (either house or manufactured home) and
not to exceed one acre of land in which it is situated upon owned
by and occupied as the sole dwelling of an owner who is at least 65
years of age or found to be permanently and totally disabled as of
December 31 of the preceding year of the taxable year for which the
exemption is claimed.
The net financial worth, including equitable interest, as
of the 31st day of December of the immediately preceding calendar
year, of the owners and of the spouse of any owner that occupies the
dwelling as their principal residence, excluding the value of the
dwelling and the land not exceeding one acre upon which it is situated,
does not exceed $50,000. The assets. including the present value of
equitable interests, less the liabilities prepared in accordance with
generally accepted account principles.
If an owner qualifies for an exemption, and the owner can
prove by clear and convincing evidence that his 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 person
move in and provide care for the owner, and if a person does then
move in for that purpose, then none of the income of that person or
of that person's spouse shall be counted towards the income limit,
provided that the owner of the residence has not transferred assets
in excess of $10,000 without adequate consideration within a three-year
period prior to or after that person moves into such residence.
Exemptions shall be granted to persons subject to the following
provisions:
A.Â
The title of the property for which exemption is claimed is held
or is partially held by the person or persons claiming exemptions
on January 1 of the taxable year.
B.Â
Real property owned and occupied as the sole dwelling of an eligible
person includes real property (i) held by the eligible person alone
or in conjunction with his spouse as tenant or tenants for life or
joint lives, (ii) held in a revocable inter vivos trust over which
the eligible person or the eligible person and his spouse hold the
power of revocation, or (iii) held in an irrevocable trust under which
an eligible person alone or in conjunction with his spouse possesses
a life estate or an estate for joint lives or enjoys a continuing
right of use or support. The term "eligible person" does not include
any interest held under a leasehold or term of years.
C.Â
The person occupying the dwelling and owning title or partial title
thereto is 65 years of age or older or is permanently and totally
disabled on December 31 of the year immediately preceding the taxable
year. Such dwelling must be occupied as the sole dwelling of the person
not less than 65 years of age or permanently and totally disabled.
A dwelling jointly held by a husband and wife. with no other joint
owners. may qualify if either spouse is 65 or is permanently and totally
disabled.
D.Â
The gross combined income and the net combined financial worth, during the year immediately preceding the taxable year shall be in agreement with § 88-50, definitions of "income" and "net combined financial worth."
E.Â
Failure of a taxpayer to be current in the payment of all local taxes
shall result in the forfeiture of the tax relief provided herein.
F.Â
The fact that persons who are otherwise qualified for tax exemption
by an ordinance promulgated pursuant to this article are residing
in hospitals, nursing homes, convalescent homes or other facilities
for physical or mental health care for extended periods of time shall
not be construed to mean that the real estate for which tax exemption
is sought does not continue to be the sole dwelling of such persons
during such extended periods of other residence so long as such real
estate is not used by or leased to others for consideration.
G.Â
Prorated tax exemptions. The tax exemption for the dwelling that
otherwise would have been provided shall be prorated by multiplying
the amount of the exemption by a fraction that has as a numerator
the percentage of ownership interest in the dwelling held by all such
joint owners who are at least age 65 or permanently and totally disabled,
and as a denominator, 100%. As a condition of eligibility for such
tax exemption, the joint owners of the dwelling shall be required
to furnish to the relevant local officer sufficient evidence of each
joint owner's ownership interest in the dwelling.
A person requesting the Commissioner of Revenue to consider
an exemption shall file annually and beginning on March 1st and not
later than May 1 of the taxable year an affidavit with the Commissioner
of Revenue setting out the required information to comply with the
requirements for the exemption of the net worth, income and age or
handicapped status.
A.Â
The affidavit shall set forth, in a manner prescribed by the Commissioner
of Revenue, (i) the names of the related persons occupying the real
estate and (ii) that the total combined net worth including equitable
interest and the combined income from all sources, of the persons
specified in § 58.1-3212, does not exceed $50,000.
B.Â
If after audit and investigation by the Commissioner of Revenue,
the Commissioner of Revenue determines that the person or persons
are qualified for exemption, the Commissioner of Revenue shall so
certify his findings to the Treasurer of Buchanan County who shall
deduct the amount of the exemption for the claimant's real estate
tax liability.
C.Â
The Commissioner of Revenue has the discretion to grant extension of time until June 1st of each year for the filing of supporting documents required in this section (§ 88-52).
D.Â
If such person is under 65 years of age, such forms shall have attached
thereto a certification by the Social Security Administrator, the
Department of Veterans Affairs or the Railroad Retirement Board. or
if such person is not eligible for certification by any of these agencies.
a sworn affidavit by two medical doctors who are either licensed to
practice medicine in the Commonwealth or are military officers on
active duty who practice medicine with the United States Armed Forces,
to the effect that the person is permanently and totally disabled,
as defined in § 58.1-3217; however a certification pursuant
to 42 U.S.C. 423(d) by the Social Security Administration so long
as the person remains eligible for such social security benefits shall
be deemed to satisfy such definition in § 58.1-3217. The
affidavit of at least one of the doctors shall be based upon a physical
examination of the person by such doctor. The affidavit of one of
the doctors may be based upon medical information contained in the
records of the Civil Service Commission which is relevant to the standard
for determining permanent and total disability as defined in § 58.1-3217.
According to the provisions of this article, the exemption shall
be administered by the Commissioner of Revenue. The Commissioner of
Revenue is hereby authorized and empowered to prescribe, adopt, promulgate
and enforce rules and regulations in conformance with the provisions
of this article, including the requirement of answers under oath.
as may be reasonably necessary to determine qualifications as specified
by the article. The Commissioner of Revenue may require the production
of certified tax returns and appraisal reports to establish income
or financial worth.
The person or persons qualifying for and claiming exemption
shall be relieved of that portion of real estate tax levied on the
qualifying dwelling and land in the amount calculated in accordance
with the following schedule: Real estate tax exemptions shall not
exceed $125 for any one year. This exemption cannot be carried forward
and can only be issued as a tax relief for the qualifying dwelling
and the one acre of land upon which the house is situated. Should
the tax liability on the property be less than $125, the amount exempted
would be the amount of the tax liability.
Changes in respect to income, financial worth, ownership of
properties and other factors occurring during the taxable year for
which the affidavit is filed and having the effect of exceeding or
violating the limitations and conditions provided in this article
shall nullify any relief of any real estate tax liability for the
then current taxable year and the taxable year immediately thereafter.
No change in reclassification and reassessment shall be required for
a tax year if the change in circumstances is attributable to the death
during the tax year of the person whose age or disability qualified
the real estate for the relief granted by this article.
Any person or persons who falsely claim exemptions under this
article shall be guilty of a misdemeanor and. upon conviction thereof,
shall be fined not less than $50 nor more than $500 for each offense.
