(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
COMMISSIONER OF THE REVENUE. Commissioner of the Revenue of the County of Northampton, Virginia or any of his duly authorized deputies or agents.
DWELLING. The full-time residence of the person or persons seeking the exemption.
ELIGIBLE PERSON.
(a) A person who is at least age 65 or permanently and totally disabled. Under this section, real property owned and occupied as the sole dwelling of an eligible person includes real property:
1. Held by the eligible person alone or in conjunction with his spouse as tenant or tenants for life or joint lives,
2. 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
3. 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.
(b) The term
ELIGIBLE PERSON
does not include any interest held under a leasehold or term of years.
EXEMPTION. Exemption from the county real estate tax according to the provisions of this section.
NET COMBINED FINANCIAL WORTH. All assets of the owners of the dwelling who reside therein, and of the spouse of any such owners, including equitable interests, excluding the value of the dwelling and the land in an amount not to exceed one acre upon which it is situated. For determination of value of real estate properties, the fair market value shall be used.
PERMANENTLY AND TOTALLY DISABLED. 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.
PROPERTY. Real property.
TAXABLE YEAR. The calendar year, from January 1 through December 31, inclusive, for which exemption is sought.
TOTAL COMBINED INCOME
.
Total income from all sources of the owners of the dwelling residing therein and of any relative of the owners who reside 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. However, if a person has already qualified for exemption under this section, and if the person can prove by clear and convincing evidence that after so qualifying 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 then move in for that purpose, then none of the relative’s income shall be counted towards the income limit.
TREASURER or COUNTY TREASURER. Treasurer of the County of Northampton, Virginia, or any of his duly authorized deputies or agents.
(B) Administration. The exemption shall be administered by the Commission of the Revenue or his authorized delegate according to the general provisions contained in this section. The Commissioner is authorized and empowered to prescribe, adopt and enforce rules and regulations, including the requirements of answers under oath, as may be reasonably necessary to determine qualifications for exemption. The Commissioner may require reproduction of certified tax returns and appraisal reports to establish income and financial worth.
(C) Eligibility for exemption. Exemption shall be granted to persons subject to the following provisions:
(1) The title to the property for which exemption is sought is held or partially held, on December 31, immediately proceeding the taxable year by the person or persons seeking the exemption. If the ownership of the property for which application for exemption is made is not held solely by the applicant or jointly with the applicant’s spouse, then the amount of the tax exemption hereunder shall be in proportion to the applicant’s ownership interest in the subject real property, as the ownership interest may appear;
(2) The head of the household occupying the dwelling and owning title or partial title hereto is 65 years or older on December 31 of the year, immediately proceeding the taxable year. Such dwelling must be occupied as the sole dwelling of the person or persons seeking the exemption;
(3) The total combined income of the owners during the year immediately preceding the taxable year shall be determined by the Commissioner of the Revenue to be an amount not to exceed $50,000. Total combined income shall include income from all sources of the owners, spouses, and of the owners relatives living in the dwelling for which exemption is claimed; provided, however, that the first $3,000 of annual income of the owners’ relatives living in the dwelling other than the spouse’s shall be excluded in computing total combined income;
(4) The net combined financial worth as of December 31 of the year immediately preceding the taxable year of the owners and of the spouse of any owner shall be determined by the Commissioner of the Revenue to be an amount not to exceed $100,000. Net combined financial worth shall include the value of all assets, including equitable interest of the owners and the spouse of any owner, excluding the fair market value of the dwelling and the land, not to exceed one acre, upon which it is situated and for which exemption is claimed;
(5) The levies against the property seeking relief be current and that the levy for the year the relief is granted be paid timely.
(D) Application for exemption.
(1) Annually after January 1, and before April 15 of the taxable year, the person or persons claiming exemption shall file with the Commissioner of the Revenue, on forms supplied by such Commissioner of the Revenue, an affidavit under oath and subject to the penalties of perjury, setting forth the location and assessed value of the property and the names of all the related persons occupying such real estate; the total combined income of the persons as specified in division (C)(3) above; and the net combined financial worth of the persons as specified in division (C)(3) above. If such person is under 65 years of age, such form shall have attached thereto a confirmation by the Social Security Administration, the Veterans’ Administration, 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 licensed to practice medicine in the Commonwealth, to the effect that such person is permanently and totally disabled, as herein defined. The affidavit of at least one of such doctors shall be based upon a physical examination of such person by said doctor. For Tax Year 2022, there shall be a second application window between July 27, 2022 and August 31, 2022 to be considered using the higher exemption levels adopted by the Board of Supervisors on July 26, 2022. Applications received during the first Tax Year 2022 window (January 1, 2022 - February 28, 2022), shall be considered using the most recently-adopted exemption levels.
(2) The affidavit of one of the doctors may be based upon medical information contained in the records of the Civil Services Commission which is relevant to the standards for determining permanent and total disability as herein defined. The Commissioner of the Revenue shall also make such further inquiry of persons seeking exemption requiring answers under oath as may be reasonably necessary to determine qualifications therefor, including qualifications as permanently and totally disabled. The Commissioner of the Revenue is authorized to require the reproduction of certified tax returns to establish the income or financial worth of any applicant for exemption from tax hereunder.
(3) If, after audit and investigation, the Commissioner of the Revenue determines that the person or persons are qualified for exemption he or she shall so certify the same, and shall determine the percentage of exemption allowable and issue non-negotiable exemption certificates in the amount of the exemption determined to be applicable to the claimant's real estate tax liability.
(4) Such exemption certificate shall apply only to the tax year for which issued. The person or persons to whom an exemption certificate has been issued shall, on or before the past due date established for payment of such real estate tax, present such exemption certificate to the Treasurer, together with payment of the difference between such exemption and the full amount of the tax payment due on the property for which the exemption was issued. Any exemption certificate not presented in settlement of such taxes on or before the date specified for payment shall be null and void and unusable thereafter and the Commissioner of the Revenue may not reissue a certificate for such tax year.
(5) An exemption certificate may be renewed by the Commissioner of Revenue annually for two years, provided the person holding the exemption files an affidavit, under oath and subject to the penalties of perjury, that no information contained it the last preceding affidavit or written statement has changed.
(E) Exempt schedule.
(1) Where the person or persons seeking exemption conforms to the standards and does not exceed the limitations contained herein, the real estate tax exemption shall be as shown on the following schedule:
Total Combined Income From All Sources | Tax Exemption Net Worth |
0 - 20,000 | 90% |
20,001 - 30,000 | 80% |
30,001 - 40,000 | 60% |
40,001 - 50,000 | 40% |
(2) Provided, however, that the maximum annual exemption on any one property shall not exceed $1,000.
(F) Additional provisions.
(1) The fact that persons who are otherwise qualified for tax exemption are residing in hospitals, nursing homes, convalescent homes or other facilities 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 such person/persons during such extended periods of other residence so long as such real estate is not used by or leased to others for consideration.
(2) 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 section shall nullify any exemption for the then current tax year immediately following.
(3) For purposes of this section, a mobile home shall be real estate if the owner’s intention that it be permanently affixed is shown by the facts that:
(a) It is located on land belonging in whole or in part to the owner of the mobile home, his spouse, parent or child, and is connected to permanent water and sewer lines or facilities; or
(b) Whether or not it is located on land belonging to persons described in subsection (a), it rests on a permanent foundation, and consists of two or more mobile units which are connected in such a manner that they cannot be towed together on a highway or consists of a mobile unit and other connected rooms or additions which must be removed before the mobile unit can be towed on a highway.
(Ord. passed 5-23-2001; Am. Ord. passed 8-20-2003; Am. Ord. passed 12-12-05; Am. Ord. passed 1-11-2006; Am. Ord. passed 5-14-2013; Am. Ord. passed 11-19-2013; Am. Ord. passed 9-9-2014; Am. Ord. passed 7-26-2022)