Minutes 05/23/1972 - Laserfiche WebLink

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M~v 25. ~g72 Motion of Mr. Johnson and seconded by Mr. Raymond Smith that the Mayor forward a letterl to Nansemond County Board of Supervisors and Chesapeake City Council, requesting that they submit a similar resolution for the benefit of their people who reside in the Western Branch area and use the Churchland Bridge, was adopted by unanimous vote. 72-200 - "Bids for the construction of storm drainage in the North Truxtun area were opened on May 16, 1972. The following bids were received: Welch Industries, Inc. Virginia Beach, Va. A. Stuart Bolling Co. Portsmouth, Va. $133,612.28 Birsch Construction Corp. Norfolk, Va. $179,441.00 It is recommended that the contract be Inc. The Engineering Department's estimate This work is a portion of the program under awarded to the low bidder, Welch Industries, for the cost of this work is $131,342.20. the Curb and Gutter, Drainage Program." On motion of Mr. Turner and seconded by Mr. Raymond Smith t~at the contract be awarded to Welch Industries, Inc., was adopted bY the following vote: Ayes: Holley, JOhnson, King, Irvine Smith, Raymond Smith, Turner, Barnes Nays'. None 72-201 - "As previously requested by the City Council, I wish to submit the following report on the possibilities, advantages, disadvantages and alternatives of real estate tax relief for senior citizens: Possibilities - Real estate tax relief in the form of exemption or deferral may, underoan amended Code of Virginia~ dated blarch 16, 1971 be given to persons who: (1) Are 65 years of age or older. (2) Who own and occupy properiy as the sole dwelling. (5) Who have combined annual income of $7,500 or less. (4) Who have combined financial net worth of $20,000 or less (not including the tax exempted or tax deferred dwelling). Jurisdictions may impose more stringent criteria than those listed above and in economic comparability with such areas as Arlington, Fairfax and Alexandria in northern Virginia, it is reasonable to assume that Portsmouth should lower the income and financial worth figures. B. Advantages of tax relief for senior citizens are: (t) A dignified method of assistance. (2) Real encouragement to remain independent and (3) May provide'ultimate collection of the total if tax deferral is utilized. self-supporting. tax liability C. Disadvantages involved with tax relief are: (1) Loss of revenue to the City. (2) Increased record keeping, particularly if tax deferral is used. (5) The assistance given senior citizens results in equitable gains for those heirs who survive the recipient to tax relief. Alternatives There are several courses of action to be con- sidered as follows: (i) Tax deferral versus tax exemption. (a) Many senior citizens strongly object to a tax lien against their homes and will avoid tax deferral of this nature. (b) Tax relief increases the size of the estate which ultimately falls to the heirs and in the final analysis enriches those who do not meet the needs test. (2) To avoid relief to those who in reality have sufficient assets to provide for their own necessities, but who refuse to liquidate unreasonable equity holdings represented by the ownership of the home, an additional provision for maximum home value should be imposed. (3) To avoid excessive relief, a maximum dollar amount should be es~ab~lgh~!aho~e,~hich tax relief is not granted. (4) Research indicates that, in ali but extreme cases, tax of some value is imposed and that the most logical and equit- able method of establishing tax is a percentage of income. Most jurisdictions have used 6%, 7% or 8% as a fair figure. (5) Tax relief should not be extended to a senior citizen who provides a part of his/her/their dwelling to other persons