Subject:
Title
Amend Town Code Chapter 6, Section 6-4.2, Eligibility for (Real Estate Tax) Exemption or Deferral
Body
EXPLANATION AND SUMMARY:
On Dec. 7, 2021, the Fairfax County Board of Supervisors approved changes to its ordinance for granting real estate tax relief. Currently, the Town mirrors the County's income and net worth limits in granting real estate tax relief. The County receives and audits data from residents and passes the Town a list of residents to whom it has granted tax relief. The Town grants relief to Vienna real estate tax bills once the County has approved the relief. There were approximately 130 recipients in FY 2021 at a total Town cost of $161,000.
Some of the County-proposed changes will become effective for FY 2022-23, and additional provisions will become effective for FY 2023-24. Staff is bringing only the first set of changes to Council this year.
The changes adopted by the County for FY 2022-23 are to increase the income limits for tax relief and increase the net worth for tax relief (excluding primary residence).
- Income limits will increase to floor of $62,000 and ceiling of $90,000 from floor of $52,000 and ceiling of $72,000.
- Net worth limit will increase to $400,000 from $340,000
These changes are expected to cost in the range of $75,000-$100,000 in additional tax relief expenses, which are planned into the proposed FY 2022-23 budget.
The finance department recommends approving the changes to provide more residents with a benefit, and for ease of administration by adopting the County-approved limits.
Strategic Plan Initiative: Vienna is a fiscally responsible community
Board or Commission of Interest: N/A
Departmental Recommendation: Recommend approving change to tax relief as detailed above.
Finance Recommendation: Recommend approving change to tax relief as detailed above.
Purchasing Recommendation: N/A
Town Attorney Recommendation: Pursuant to Virginia Code Section 58.1-3210, the Town may adopt an ordinance exempting or deferring taxes on certain elderly and disabled persons. The Town Council may adopt the proposed amendments to the Town’s real estate tax relief program in the discretion of the Town Council.
Town Manager's Recommendation: I recommend the Town Council approve the amendment to the Vienna Town Code, Chapter 6, Section 6-4.2 and the Town Council direct the Town Clerk to advertise the intent to adopt the ordinance change, as presented.
Cost and Financing: $100,000
Account Number: 100-105-1053-15330-45701
Decision Needed by This date: April 11, 2022
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to approve the amendment to the Vienna Town Code, Chapter 6, Section 6-4.2 as presented,
And
I further move to direct the Town Clerk to advertise a Notice of Adoption."
Or
Other action deemed necessary by Council.