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<br />November 8. 2005
<br />
<br />Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley
<br />Nays: None
<br />
<br />05 - 500 - Adoption of an ordinance to amend Chapter 35 of City Code by adjusting the
<br />Real Estate Tax Relief Program eligibility and tax exemption thresholds for the elderly
<br />and disabled;
<br />'" Increase the income eligibility and exemption thresholds for the tax abatement
<br />program by $1,000 from the current limit range of $14,000 (minimum) to $19,000
<br />(maximum) to a revised limit range of $15,000 (minimum) to $20,000 (maximum).
<br />Additionally, increase the financial worth limit for the tax abatement program by $3,300
<br />from the current $64,200 level to a revised $67,500 level.
<br />'" Increase the income eligibility and exemption thresholds for the tax freeze
<br />program by $2,500 from the current limit of $40,000 to $42,500. Additionally, increase
<br />the financial worth limit for the tax freeze program by $10,000 from the current $150,000
<br />level to a revised $160,000 level.
<br />Vision Principle: Neighborhood and Community Transformation.
<br />
<br />Background:
<br />. The City's tax relief program consists of both a tax abatement program and a tax
<br />freeze program for elderly and disabled citizens with income eligibility and exemption
<br />thresholds established at $19,000 and $40,000, respectively. Financial worth eligibility
<br />and exemption thresholds were established for these two programs at $64,200 and
<br />$150,000, respectively. To qualify for either program, a citizen must be 65 or older or
<br />have a permanent/total disability.
<br />. $1.445 million was included for real property tax relief in the adopted FY-06
<br />Budget and $1.3 million was included in the adopted FY-05 Budget.
<br />
<br />Discussion:
<br />. The income limits for tax abatement programs at other Hampton Roads localities
<br />ranges from $30,000 (Hampton) to $50,000 (Norfolk and Newport News). The income
<br />limit for the only other locality with a tax freeze program is $50,000 (Hampton). The
<br />financial worth limit for tax abatement programs at other localities ranges from $100,000
<br />(Hampton) to $200,000 (Chesapeake, Newport News, Norfolk and Suffolk). The
<br />financial worth limit for the Hampton tax freeze program is $175,000.
<br />
<br />Staff Recommends:
<br />Adoption of an Ordinance to amend Chapter 35 of City Code by adjusting the Real
<br />Estate Tax Relief Program eligibility and tax exemption thresholds for the elderly and
<br />disabled;
<br />'" Increase the income eligibility and exemption thresholds for the tax abatement
<br />program by $1,000 from the current limit range of $14,000 (minimum) to $19,000
<br />(maximum) to a revised limit range of $15,000 (minimum) to $20,000 (maximum).
<br />Additionally, increase the financial worth limit for the tax abatement program by $3,300
<br />from the current $64,200 level to a revised $67,500 level.
<br />'" Increase the income eligibility and exemption thresholds for the tax freeze
<br />program by $2,500 from the current limit of $40,000 to $42,500. Additionally, increase
<br />the financial worth limit for the tax freeze program by $10,000 from the current $150,000
<br />level to a revised $160,000 level.
<br />Vision Principle: Neighborhood and Community Transformation.
<br />
<br />Next Steps Following Council Action:
<br />. The CFO will ensure the financial impacts of these changes (currently estimated
<br />to cost as much as $200,000) will be included in the budget development process for
<br />the FY-07 Operating Budget.
<br />. The Director of Social Services will ensure the programmatic impacts of these
<br />changes will be properly administered during the eligibility process for the FY-07 Real
<br />Estate Tax Relief Program.
<br />
<br />Motion by Mr. Moody, and seconded by Mr. Whitehurst, to adopt the following
<br />ordinance, and was adopted by the following vote:
<br />
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