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Task Force to Review Real Estate Tax Relief Program

posted Jul 20, 2016, 10:06 AM by Lilly Mancilla

Task Force to Review Real Estate Tax Relief Program

  • Manager sets charge for working group
  • Addressing needs of low-income senior households
  • Reviewing income and asset limits, exemption and deferral criteria

Arlington County Manager Mark Schwartz reported today to the County Board on the official charge for a Real Estate Tax Relief Working Group that will perform a comprehensive review of the County’s program.

“We all acknowledge that Arlington’s rising property values and related increase in the property tax burden is sometimes difficult for seniors on a fixed-income to deal with,” Schwartz said. “This working group will be taking a hard look at our current program and present recommendations early next year on what, if any, changes should be made to better achieve our goal of supporting residents, where we can, who wish to age in place.”

The working group, which will be appointed by the County Manager this month and report to him on its findings, is charged with:

  • Researching and reviewing best practices across the nation related to real estate tax relief.
  • Engaging and informing the community and relevant stakeholders of the group’s ongoing efforts and discussions.
  • Determining if there may be Arlingtonians who qualify for real estate tax relief but are not currently participating in the program, and providing recommendations for what could be done differently to effectively reach these residents.
  • Collaborating with a consultant to conduct surveys and/or focus groups to gauge the program’s historical success in reaching eligible Arlingtonians and enabling these residents to stay in their homes, and to ascertain what changes (if any) would allow the program to better address elderly and disabled Arlingtonians’ needs.
  • Using identified best practices and survey/focus group results to inform an analysis of the current program’s approach to enabling elderly and disabled Arlingtonians to stay in their homes.
  • Providing recommendations on how to best structure and administer the program in Arlington moving forward.

Read the charge to the working group, which includes timeline and proposed members. 

More than 900 households now participate in the program

In Fiscal Year 2015, 911 households received a full or partial exemption and 29 households received only deferrals, resulting in a combined $4.2 million in uncollected revenue.

The County reviews criteria for the Tax Relief Program annually as part of the County budget process. The working group will conduct a broader review involving the community. One of the key recommendations of the Affordable Housing Master Plan adopted by the County Board in September 2015 was to review the goals and guidelines of the program, and to consider redefinition of income levels, asset levels and criteria for exemptions and deferrals.

Background

Virginia localities are authorized to provide real estate tax relief to homeowners aged 65 or over, as well as to permanently disabled homeowners.

  • The current Arlington County Tax Relief Program provides an exemption or deferral from real estate taxes for qualified Arlington homeowners whose annual household income is below $99,472, and whose household assets (excluding the value of their Arlington home) are below $340,000.
  • A household may receive a full, 50 percent or 25 percent exemption depending on income, assets and household size. For households receiving a partial exemption, the non-exempt portion of the tax may be deferred.
  • Homeowners within the income guidelines who have assets over $340,000 but below $540,000 may defer payment of their real estate taxes until their property changes ownership.
  • No interest or penalty fees are charged.

Working Group structure

The County Manager will appoint a limited-term advisory body, the Real Estate Tax Relief Working Group, which will consist of a chair and vice-chair, along with members representing the following:

  • Commission on Aging
  • Disability Advisory Commission
  • Fiscal Affairs Advisory Commission
  • Housing Commission
  • Member(s)-at-large
  • Real Estate Tax Relief Program participant(s)

Final report

The working group will produce a final report on its key findings in early 2017. The report could include recommendations for eligibility, structural, administrative and other changes to the existing program.

Media Contact

Kurt Larrick703-228-1775

View this release in our newsroom

Arlington Va., is a world-class residential, business and tourist location that was originally part of the “10 miles square” parcel of land surveyed in 1791 to be the Nation's Capital. Slightly smaller than 26 square miles, it is the geographically smallest self-governing county in the United States, and one of only a handful with the prized Aaa/AAA/AAA bond rating. Arlington maintains a rich variety of stable neighborhoods and quality schools, and has received numerous awards for Smart Growth and transit-oriented development. Home to some of the most influential organizations in the world — including the Pentagon — Arlington stands out as one of America's preeminent places to live, visit and do business.
 
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