Board of Supervisors expands tax relief program
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| The Fairfax County Government Center. |
The Fairfax County Board of Supervisors agreed Dec. 4 to expand eligibility for the county’s real estate tax relief program for qualified seniors and people with disabilities. The measure was approved unanimously.
The BoS increased the maximum gross income to qualify for tax relief from $72,000 to $90,000. They also increased the maximum net worth from $340,000 to $400,000. Eligibility is limited to people age 65 or older or permanently and totally disabled. The measure sets four brackets for tax relief based on the following gross income limits:
- 100 percent relief – $0 to $60,000.
- 75 percent relief – $60,001 to $70,000.
- 50 percent relief – $70,001 to $80,000.
- 25 percent relief – $80,001 to $90,000.
The amount of tax relief for all brackets would be capped at 125 percent of the mean assessed value of Fairfax County homes.
This would be the first major change in the tax relief program since 2006.
The BoS also created a new program to allow taxpayers to defer real estate tax payments, subject to interest. To qualify, households could have up to a total combined income of $100,000 and a net worth of $500,000. Any deferred taxes would be subject to interest at the Wall Street Journal prime rate, plus 1 percent per year, subject to a maximum rate of 8 percent.
The current tax relief program has a fiscal impact of $28 million to Fairfax County, said board chair Jeffrey McKay. The changes will increase the impact to at least $48 million.
Expanding tax relief supports such county goals as housing affordability, McKay said, and will make a “significant difference in the lives of so many seniors and disabled people.”
“It will help many seniors stay in their homes,” said Mason Supervisor Penny Gross. “We shouldn’t be in the process of forcing people out of Fairfax County.”
If approved, these changes would be implemented over the next two years and would be fully effective on Jan. 1, 2023.
This is nice on paper by the county, but it is a little specious. If you own a detached house outright in Fairfax County without a mortgage, its value will be greater than $400,000. Heck, in my neighborhood, it's more like $550,000. That automatically puts you over the limit for assets (maximum net worth), so you do not qualify for this discount. That number is so low that it will likely force seniors out of Fairfax County because paying the full tax bill is so high. So if you are living on Social Security at $2,000 per month, but your house is valued at $500,000, you have to pay the full tax bill. Those people are not going to stay in Fairfax County… they can't afford it.
Totally agree… Disheartening to see that the BOS does not understand that home equity does not assist one's ability to pay annual real estate tax obligations. Isn't that the purpose of having a maximum net worth constraint? Common sense isn't so common anymore 🙁
The tax relief only helps those who have a pension, Military, Fairfax County Employees, Federal Government. It does nothing for those of us retired with 401K accounts, as we need a higher asset limit
because we are living on those assets. I brought this to the attention of our Chairman, Mr. McKay, at Mason District budget meetings (in the past). They do not care…it doesn’t affect them. As the rules stand, tax relief is inequitable. Please come up with a more fair way of handling this issue, so it across the board, not just those that have pensions!!
Bob Kovacs: Your asset limit does not include your house, some land, etc.. Read the brochure that came with our real estate assessment,please. Thanks!