Task Force to Review Real Estate Tax Relief Program
Arlington County Manager Mark Schwartz recently reported 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.
The working group includes two JMCLA Board members, Edith Gravely and Peggy Jones.
Task Force charge:
- 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.
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.
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.
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.
For more information, visit arlingtonva.us.