Supervisors consider allowing more seniors and people with disabilities to qualify for tax relief
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| The Fairfax County Government Center. |
The Fairfax County Board of Supervisors is considering expanding the property tax relief program for seniors (age 65+) and people with disabilities.
At its Nov. 8 meeting, the board agreed to hold a public hearing on the proposal on Dec. 7.
Currently, the maximum gross income to qualify for tax relief is $72,000. The proposal would increase that to $90,000. It would also increase the maximum net worth to qualify from $340,000 to $400,000.
Under the current program, there are three brackets for tax relief: 100 percent tax relief for households with gross incomes up to $52,000; 50 percent relief for incomes between $52,001 and $62,000, and up to 25 percent for incomes between $60,001 and $72,000.
The proposal under consideration would add a new 75 percent bracket for households with gross incomes between $60,001 to $70,000. Other brackets would be adjusted.
The amount of tax relief for all brackets would be capped at 125 percent of the mean assessed value of Fairfax County homes.
The proposal would also 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 per year.
If approved, these changes would be implemented over the next two years and would be fully effective as of Jan. 1, 2023.
To submit testimony at the Dec. 7 hearing, sign up here.
Sign me up before I retire and move somewhere else. The cost of living here and lack of services is not good motivation to remain here. This help can be a game changer.
My suggestion is that real estate taxes are capped at whatever the rate is at that time, at age 72, with house and land valued at not over $650,000.
This still does not address the inequity between those that have a pension and those who retired with an IRA and no guaranteed pension. Those who do not have a pension must have at about $500,000 (which counts against the $400,000 limit on cash) to fund 19 to 20 years of retirement.