Title
Ordinance to Amend and Reenact the City Code of the City of Hampton, Virginia by Amending Chapter 37, Titled “Taxation,” Article II, Titled "Real Estate Taxes,” Division 6, Titled “Deferral or Freeze for Elderly and Disabled Persons” Section 37-119 Regarding Income Thresholds Applicable to Qualification
Purpose
PURPOSE/BACKGROUND:
See the Discussion below.
Discussion:
The City of Hampton offers tax relief to certain qualifying elderly and disabled individuals pursuant to a program through which such qualifying individuals can either freeze or defer his or her real estate tax liability. In order to qualify, and individual must be at least 65 years of age or permanently and totally disabled on or before December 31 of the year immediately preceding the year in which you are applying for tax relief. In addition, the qualification is subject to certain income thresholds. Historically, that income threshold has been a combined gross household income of $50,000 or less from all sources, including all relatives residing in the residence. Those programs have been in place for at least a decade, yet that income threshold has not been adjusted to reflect the time value of the dollar, or the marginal cost of living increases that many of the individuals had to their otherwise fixed income.
Program qualification is based on an analysis of income received in the prior calendar year. Accordingly, applications for relief for real estate for the upcoming fiscal year (July 1, 2019 - June 30, 2020) will be evaluated based on income received in calendar year 2018. The proposed ordinance directs the Commissioner of the Revenue to annually increase the income threshold by a percentage equal to the federal social security cost of living adjustment applicable to the year for which income is reported on the application. This proprosed revision will be effective immediately. The social security cost of living increase for 2018 was 2%. Accordingly, the income thre...
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