[HISTORY: Adopted by the City Council of the City of Galax as indicated in article histories. Amendments noted where applicable.]
[Adopted as Ch. 14 of the 1974 Code; amended in its entirety 3-13-2023]
As authorized by Article 2, Chapter 32, of Title 58.1 of the Code of Virginia, 1950, as amended, a real estate tax exemption is hereby established for qualified property owners who are not less than 65 years of age or who are permanently and totally disabled and who are eligible according to the terms of this article. Persons qualifying for exemption are deemed to be bearing an extraordinary real estate tax burden in relation to their income and financial worth. The effective date of this article shall relate back to January 1, 2023.
The provisions of this article shall be administered by the Commissioner of the Revenue according to the terms, conditions and restrictions set forth herein, and the Commissioner is hereby authorized and empowered to prescribe, adopt and enforce rules and regulations for the administration of this article. The Commissioner may require the production of certified tax returns and appraisal reports to establish income or financial worth. This article shall be interpreted to conform in all respects to any mandatory provisions contained in the Code of Virginia, as it may be amended from time to time.
Exemption shall be granted to the extent set forth in this article, provided that each and every one of the following criteria are met:
A. 
That the title of the property for which exemption is claimed is held or partially held, on January 1 of the taxable year for which exemption is sought, by the person or persons claiming exemption.
B. 
That the person or persons claiming the exemption was 65 years old or older or permanently and totally disabled on December 31 of the year immediately preceding the taxable year for which exemption is sought.
C. 
That the real property for which the exemption is sought constituted the sole place of residence of all owners of such property.
D. 
That the total combined household income during the year immediately preceding the taxable year for which the exemption is sought shall not exceed $40,000. In calculating the total combined household income, for purposes of this article, such figure shall include the combined income of all owners of the dwelling for which exemption is sought, the relatives of the owners living in the dwelling, and any other nonrelative household members living in the dwelling, excluding bona fide tenants of the owners. Total combined household income shall not include income of relative or nonrelative individuals providing bona fide caregiving services to owner(s) whether such services are compensated or not. Total annual household income shall not include the first $2,000 of income of each relative or nonrelative, other than the spouse of the owner or owners, who is living in the dwelling.
E. 
That the total combined net financial worth of the owners and the spouse of any owner shall not exceed $100,000. The total financial worth shall include the value of all assets, including equitable interests, of the owners and the spouse of any owner, but shall exclude the fair market value of the dwelling and the land upon which it is situated, not exceeding one acre, for which exemption is claimed.
The person or persons claiming an exemption shall file annually with the Commissioner of the Revenue, on forms supplied, an affidavit setting forth the names of the related persons occupying the real estate, their total income from all sources, the total income of the owners and their spouses and the combined total net worth of the owner and spouse. Such affidavit shall be filed not later than April 30 of each year. First-time filers who did not know of the tax relief ordinance, or hardship cases such as sickness preventing filing by April 30, may have until June 30 to file at the discretion of the officer who administers this article. The Commissioner of the Revenue is authorized to make such further inquiry of persons seeking such exemption, requiring answers under oath, as may be reasonably necessary to determine their qualifications therefor, as specified herein, and the Commissioner of the Revenue is further authorized to require the production of certified tax returns to establish the income or financial worth of any applicant for tax relief hereunder.
The exemption hereunder is granted for any year following the date that the owner or owners occupying such dwelling and holding title or partial title thereto reaches the age of 65 years or becomes totally and permanently disabled. Changes in respect to disability, income, financial worth, ownership of property or 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 herein shall nullify the exemptions for the then-current taxable year and the taxable year immediately following.
Failure to pay any balance of tax, after credit is granted, by December 5 shall nullify any tax credit, and the full amount of tax assessed shall immediately become due unless the taxpayer has made prior arrangements with the Director of Finance for making partial payments.
For the purposes of this article, a "permanently and totally disabled person" shall mean a person as described in § 58.1-3217, Code of Virginia. Certification by the Social Security Administration, the Veterans' Administration or the Railroad Retirement Board or, if the person is not eligible for certification by any of these agencies, a sworn affidavit by two doctors is required to be filed with the affidavit of the person applying for tax relief, as required by § 58.1-3213, Code of Virginia.
A. 
The person or persons qualifying for and claiming exemption shall be relieved of that portion of the real estate tax levied on the qualifying dwelling and land, in accordance with this section, provided that the net worth limitation contained in § 137-3E is not exceeded.
B. 
No exemption granted hereunder shall exceed the amount of $400. All persons claiming an exemption are entitled to only one exemption for the property, regardless of whether or not they are both permanently and totally disabled and over 65 years of age.
C. 
The amount of the exemption shall be $400 for the real property of qualifying taxpayers having combined household incomes of up to and including $30,000. The amount of the exemption shall be $300 for the real property of qualifying taxpayers having combined household incomes in excess of $30,000 but not more than $35,000. The amount of the exemption shall be $200 for the real property of qualifying taxpayers having combined household incomes in excess of $35,000 but not more than $40,000. No exemption shall be available for taxpayers having combined household incomes in excess of $40,000.
Changes in respect to income, financial worth, ownership of property or 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 real estate tax liability for the then-current taxable year and the taxable year immediately following.
A. 
A Board of Real Estate Tax Relief Review is hereby created, consisting of three members to be appointed by the City Council, one of whom may be a member of Council.
B. 
One of the initial members shall be appointed for one year, one for two years and one for three years, and subsequently members shall be appointed for terms of three years as vacancies occur.
A. 
Appeals from decisions of the Commissioner of the Revenue under this article may be taken by an aggrieved party of the Board of Real Estate Tax Relief Review.
B. 
Appeals shall be taken within 15 days after the decision appealed from by filing with the Commissioner of the Revenue a notice of appeal. The Commissioner of the Revenue shall forthwith transmit the appeal, together with all related documents, to the Board of Real Estate Tax Review, which shall fix a reasonable time for hearing, notifying the parties concerned, and thereafter such Board shall decide the matter so appealed within a period of 30 days.
Any person or persons falsely claiming an exemption shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than $25 nor more than $250 for each offense.