City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 7, 2014
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER/s/
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Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Change the Asset Limits for Full and Partial Real Estate Tax Exemptions Under the City's Real Estate Tax Relief Program for Elderly or Permanently and Totally Disabled Persons.
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ISSUE: Ordinance to Change the Income and Asset Limits for Full and Partial Real Estate Tax Exemptions Under the City's Real Estate Tax Relief Program for Elderly or Permanently and Totally Disabled Persons (Real Estate Tax Relief Program).
RECOMMENDATION: That City Council pass the proposed Ordinance (Attachment 2) on first reading on May 13, 2014, and schedule it for public hearing, second reading and final passage on May 17, 2014. The proposed Ordinance would accomplish the following:
A. Decrease the asset eligibility limits for the Real Estate Tax Relief Program from $540,000 to $430,000 for all assets excluding the applicant's home.
B. Specify that bank and investment statements may be required to establish total financial worth.
BACKGROUND: The City provides an Elderly and Disabled Real Estate Tax Relief Program for residents who are 65 years of age or older, or are permanently and totally disabled. Eligibility for the tax relief program is based on need. Determinations of need are currently based on an individual's gross household income and assets. Lower income households receive proportionally greater amounts of tax relief than households with higher income.
Since 2007, the City has provided tax relief to home owners in Alexandria whose assets (not including their home) did not exceed $540,000. Full or partial exemption or deferral of taxes is tied to the applicant's household income...
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