Legislation # 06-0308 Enactment Number none
Type Ordinance - Coded Effective Date none
Introduction Date 5/24/2006
Title An Ordinance to Amend the Code of the City of Hampton, Chapter 37, Article II, Division 6 Entitled, "EXEMPTION OR DEFERRAL FOR ELDERLY AND DISABLED PERSONS" by Amending and Re-enacting Section 37-116, Section 37-118, Section 37-121, Section 37-122, Section 37-123, Section 37-125, Section 37-126, and Section 37-128.
 
Legislation History 06-0308
DateNotice Of ActionDescription
6/14/2006 Approved Items 1 through 4 and 7 through 18 on the Consent Agenda. Item 5 was deferred in Council's afternoon session and Item 6 was pulled by Councilwoman Leary.
5/24/2006 Adopted on First Reading - Commissioner of the Revenue, Ross Mugler, presented information on this matter.
5/15/2006 Received By Clerk's Office
 
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Legislation Text 06-0308

 

City of Hampton, Virginia

Ordinance - Coded

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 06-0308

 

Enactment Number: -

 

An Ordinance to Amend the Code of the City of Hampton, Chapter 37, Article II, Division 6 Entitled, "EXEMPTION OR DEFERRAL FOR ELDERLY AND DISABLED PERSONS" by Amending and Re-enacting Section 37-116, Section 37-118, Section 37-121, Section 37-122, Section 37-123, Section 37-125, Section 37-126, and Section 37-128.

 

 

DIVISION 6. EXEMPTION OR DEFERRAL FOR ELDERLY AND DISABLED PERSONS.

 

Sec. 37-116. Definitions.

 

For the purposes of this division, the following words and phrases shall have the meanings respectively ascribed to them by this section:

 

Affidavit shall mean the real estate tax exemption or deferral affidavit provided for in this division.

 

Deferral shall mean a total or partial deferral of real estate taxes assessed on real property inhabited by a taxpayer qualified under the terms of this division. The amount of such taxes so deferred shall become due and payable at a later date in accordance with the provisions of section 37-124 of this division.

 

Dwelling shall mean the full-time residence of the person claiming exemption, deferral, or freeze pursuant to this division.

 

Permanently and totally disabled shall mean 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 a person's life.

 

Property shall mean real property.

 

Tax exemption shall mean the exemption of that portion of the real estate tax owed by a qualified taxpayer as determined by section 37-123 of this division. No lien shall accrue as a result of the amount certified as exempt under this section.

 

Tax freeze shall mean the total exemption of that portion of the real estate tax which represents the increase in such tax since the taxpayer initially applied and qualified for a freeze under this division, so that the taxpayer's real estate tax will be frozen at the amount assessed in the fiscal year in which the taxpayer initially applied and qualified. If, for any year following the initial qualification of a taxpayer for a tax freeze such taxpayer becomes disqualified, any subsequent application for a freeze by such taxpayer shall be treated as an initial application for purposes of determining the tax freeze. No lien shall accrue as a result of the amount certified as exempt under this section.

 

Taxable year shall mean the year for which an annual assessment is made and for which exemption, deferral, or freeze is claimed under this division.

 

Sec. 37-118. Administration; general authority of commissioner of the revenue.

 

(a) The exemption, deferral, or freeze provided for in this division shall be administered by the commissioner of the revenue according to the provisions of this division. The commissioner of the revenue is hereby authorized and empowered to prescribe, adopt, promulgate and enforce such rules and regulations, in conformance with the provisions of this division and the laws of the commonwealth enabling this division, including the requirement of answers under oath, as may be reasonably necessary to determine qualifications for the exemption, deferral, or freeze provided for in this division.

 

(b) The commissioner of the revenue shall make such inquiry as may be reasonably necessary to determine the qualifications and the eligibility of persons seeking exemption, deferral, or freeze under this division. He may, in addition, require the production of certified tax returns and appraisal reports to establish the income or financial worth of any applicant for such exemption, deferral, or freeze.

 

(c) All inquiries made by the commissioner of the revenue and all information supplied by an applicant pursuant to this division shall be deemed confidential and shall not be released to any person other than an employee or officer of the office of the commissioner of the revenue or other persons designated by the commissioner of the revenue, having a need to know such information, unless otherwise ordered by a court of law.

 

Sec. 37-121. Applicant's affidavit and certificate of disability.

 

(a) Annually, before the first day of September each calendar year, a person claiming an exemption, deferral, or freeze under this division shall file a real estate tax exemption, deferral, or freeze affidavit with the commissioner of the revenue or the designee of the commissioner of the revenue, for exemption, deferral, or freeze to be effective in the fiscal year beginning in the calendar year in which the affidavit was received. The commissioner of the revenue may permit a subsequent filing, on or before the fifth day of December of the then current year, if the person is a first-time applicant or a hardship case and good cause is shown.

 

(b) Notwithstanding any other provision of this section, the commissioner of the revenue shall permit an otherwise eligible person, whose dwelling has been transferred as a result of eminent domain, or threat or imminence thereof, to file the affidavit required by this section within thirty (30) days after such person takes record title to a dwelling acquired to replace the dwelling so transferred.

 

(c) The affidavit required by this section shall set forth, in a manner prescribed by the commissioner of the revenue , the name of the owner occupying the dwelling and the names of any related persons living in the dwelling for which exemption, deferral, or freeze is claimed, their gross income and their total combined net worth. The affidavit shall also include an indication as to whether the person claims the exemption, deferral, or freeze option, and if deferral, the amount of deferral claimed, not to exceed one hundred (100) percent of the real estate tax liability.

 

(d) If the applicant is under sixty-five (65) years of age, the affidavit required by this section shall have attached thereto a certification by the Social Security Administration, the Department of Veterans Affairs or the Railroad Retirement Board, or if such person is not eligible for certification by any of these agencies, a sworn affidavit by two (2) medical doctors who are either licensed to practice medicine in the commonwealth or are military officers on active duty who practice medicine with the United States Armed Forces, to the effect that such person is permanently and totally disabled, as defined in section 37-116; however, a certification pursuant to 42 U.S.C. 423(d) by the Social Security Administration so long as the person remains eligible for such Social Security benefits shall be deemed to satisfy such definition in Section 37-116. The affidavit of at least one of such doctors shall be based upon a physical examination of the applicant by such doctor. The affidavit of one (1) of such doctors may be based upon medical information contained in the records of the civil service commission which is relevant to the standards for determining permanent and total disability, as defined in section 37-116.

 

Sec. 37-122. Certification to city treasurer; adjustment of tax records, etc.

 

If, after audit and investigation, the commissioner of the revenue determines that a person is qualified for exemption, deferral, or freeze under this division, he shall cause such fact to be certified to the city treasurer, who shall deduct the amount of exemption, deferral, or freeze from the claimant's real estate tax liability and adjust the tax records accordingly. Any remaining tax due shall be billed in equal installments in accordance with the ordinances of the city as to the payment of such bills.

 

Sec. 37-123. Amount of exemption.

 

(a) A person qualifying for and claiming exemption, whose total combined income is between twenty-one thousand dollars ($21,000.00) and thirty thousand dollars ($30,000.00) during the calendar year immediately preceding the taxable year, shall be partially exempt from the entire amount of the real estate taxes assessed against such property. The amount of partial exemption shall be determined by subtracting twenty-one thousand dollars ($21,000.00) from the amount of total combined income. The resulting difference shall be divided by nine thousand (9,000) to convert this amount to a percent. This number is the percentage of tax liability. This percentage of tax liability is multiplied by the entire amount of the real estate taxes assessed against such real property and the resulting product is the amount of tax liability of the person provided, however, that all persons claiming a partial exemption shall pay a minimum tax of twenty-five dollars ($25.00).

 

(b) A person qualifying for and claiming exemption and who has a gross income during the year immediately preceding the taxable year in an amount not to exceed twenty-one thousand dollars ($21,000.00) shall be exempt from the entire amount of the real estate taxes assessed against such property.

 

(c) No lien shall accrue as a result of the amount certified as exempt under this section.

 

Sec. 37-125. Nullification upon change in status.

 

Changes in respect to income, financial worth, ownership of property or other factors occurring during the taxable year for which an affidavit is filed under this division, and having the effect of exceeding or violating the limitations and conditions provided in this division, shall nullify any relief of real estate tax liability for the remainder of the current taxable year, and the taxable year immediately following; provided, however, a change in ownership to a spouse less than sixty-five (65) years of age, or who is not permanently and totally disabled, and when such change resulted solely from the death of his or her qualified spouse, or sale of such property, shall result in a prorated exemption, deferral, or freeze for the then-current tax year. The proceeds of the sale which would result in the prorated exemption, deferral, or freeze shall not be included in the computation of net worth or income as provided above. Such prorated portion shall be determined by multiplying the amount of the exemption, deferral, or freeze by a fraction wherein the number of complete months of the year such property was properly eligible for such exemption, deferral, or freeze is the numerator and the number twelve (12) is the denominator. Upon nullification as provided herein, the commissioner of revenue shall so certify to the treasurer, who shall proceed to collect all taxes due and adjust his records accordingly. Also, upon nullification as provided herein for an exemption, deferral, or freeze, the penalty, as provided in section 37-28, shall be incurred on the next real estate tax installment due date, and the interest as provided in section 37-29 shall be incurred on the first day of the month of the succeeding taxable year following the installment due date when the penalty was incurred.

 

 

Sec. 37-126. False claims.

 

Any person falsely claiming an exemption, deferral, or freeze under this division shall be guilty of a Class 1 misdemeanor. Any relief granted based on false claims shall be nullified in the same manner as 37-125.

 

Sec. 37-128. Notice of local real estate tax exemption, deferral, or freeze program for the elderly and handicapped.

 

The treasurer of the city shall enclose written notice, in each real estate tax bill, of the terms and conditions of any local real estate tax exemption, deferral, or freeze program established in the city pursuant to 58.1-3210. The commissioner of the revenue and treasurer shall also employ any other reasonable means necessary to notify residents of the city about the terms and conditions of the real estate tax exemption, deferral, or freeze program for elderly and handicapped residents of the city.

 

Adopted at the regular meeting of the City Council of the City of Hampton, Virginia held on June 14, 2006.

 

 

 

Signed by ____________________________ Date _________________

Ross A. Kearney, II, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass

Clerk of the Council