2006 Code of Virginia § 58.1-3211 - Restrictions and exemptions

58.1-3211. Restrictions and exemptions.

Any exemption or deferral program enacted by a county, city or town pursuantto 58.1-3210 shall be subject to the following restrictions and conditions:

1. a. Subject to subdivision 1 b of this section, the total combined incomereceived from all sources during the preceding calendar year by (i) owners ofthe dwelling who use it as their principal residence and (ii) owners'relatives who live in the dwelling, shall not exceed the greater of $50,000,or the income limits based upon family size for the respective metropolitanstatistical area, annually published by the Department of Housing and UrbanDevelopment for qualifying for federal housing assistance pursuant to 235of the National Housing Act (12 U.S.C. 1715z). As an alternative option, acounty, city, or town may provide that the total combined income receivedfrom all sources during the preceding calendar year by (a) owners of thedwelling who use it as their principal residence and (b) owners' relativeswho live in the dwelling shall not exceed the county's or city's medianadjusted gross income of its married residents. Each county's or city'smedian adjusted gross income of its married residents means the most recentmedian adjusted gross income of individual income tax returns of the marriedresidents of the county or city for a taxable year as published by the WeldonCooper Center for Public Service of the University of Virginia. A town'smedian adjusted gross income of its married residents shall equal theapplicable county's median adjusted gross income of its married residents.

Any amount up to $10,000 of income of each relative who is not the spouse ofan owner living in the dwelling and who does not qualify for the exemptionprovided by subdivision 1 b hereof may be excluded in determining totalcombined income. The local government may exclude up to $5,000 of anypermanent or temporary disability benefit, from whatever source, received byan owner. The local government may also exclude up to $10,000 of income foran owner who is permanently disabled.

b. Notwithstanding subdivision 1 a of this section, if a person qualifies foran exemption or deferral under this article, and if the person can prove byclear and convincing evidence that the person's physical or mental health hasdeteriorated to the point that the only alternative to permanently residingin a hospital, nursing home, convalescent home or other facility for physicalor mental care is to have a relative move in and provide care for the person,and if a relative does then move in for that purpose, then none of the incomeof the relative or of the relative's spouse shall be counted towards theincome limit, provided the owner of the residence has not transferred assetsin excess of $10,000 without adequate consideration within a three-yearperiod prior to or after the relative moves into such residence.

2. The net combined financial worth, including the present value of allequitable interests, as of December 31 of the immediately preceding calendaryear, of the owners, and of the spouse of any owner, excluding the value ofthe dwelling and the land, not exceeding 10 acres, upon which it is situatedshall not exceed $200,000. The local government may also exclude furnishings.Such furnishings shall include furniture, household appliances and otheritems typically used in a home. The local government may also elect toannually increase the net combined financial worth limit by an amountequivalent to the percentage increase in the Consumer Price Index for the12-month period ending September 30 of the year immediately preceding theaffected tax year.

3. Notwithstanding the provisions of subdivisions 1 and 2, in the Cities ofCharlottesville, Chesapeake, Norfolk, Portsmouth, Richmond, Suffolk, andVirginia Beach and the Counties of Chesterfield, Goochland, and Henrico, theboard of supervisors or council may, by ordinance, raise the income andfinancial worth limitations for any exemption or deferral program to amaximum of the greater of $52,000 or the income limits based upon family sizefor the respective metropolitan statistical area, annually published by theDepartment of Housing and Urban Development for qualifying for federalhousing assistance pursuant to 235 of the National Housing Act (12 U.S.C. 1715z), for the total combined income amount, and $350,000 for the maximumnet combined financial worth amount, which shall exclude the value of thedwelling and the land, not exceeding 10 acres, upon which it is situated. Anyamount up to $10,000 of income of each relative who is not the spouse of anowner living in the dwelling may be excluded under this subdivision. Inaddition, as an alternative option such cities and counties may use themedian adjusted gross income of its married residents, as determined undersubdivision 1 a, for the total combined income limit and may also elect toannually increase the net combined financial worth limit herein in the samemanner as provided in subdivision 2.

4. Notwithstanding the provisions of subdivisions 1 and 2, in the Counties ofArlington, Clarke, Fairfax, Fauquier, Loudoun, Prince William, and Stafford,and the Cities of Alexandria, Fairfax, Falls Church, Manassas, and ManassasPark, and in any incorporated town located in such counties, the respectiveboard of supervisors or council may, by ordinance, raise the income andfinancial worth limitations for any exemption or deferral program to amaximum of the greater of $72,000 or the income limits based upon family sizefor the respective metropolitan statistical area, annually published by theDepartment of Housing and Urban Development for qualifying for federalhousing assistance pursuant to 235 of the National Housing Act (12 U.S.C. 1715z), for the total combined income amount, and $540,000 for the maximumnet combined financial worth amount, which shall exclude the value of thedwelling and the land, up to but not exceeding 25 acres, all of which shallbe non-income producing, upon which it is situated. Any amount up to $10,000of income of each relative who is not the spouse of an owner living in thedwelling may be excluded under this subdivision. In addition, as analternative option such counties, cities, and towns may use the medianadjusted gross income of its married residents, as determined undersubdivision 1 a, for the total combined income limit and may also elect toannually increase the net combined financial worth limit herein in the samemanner as provided in subdivision 2.

5. For purposes of this article, income shall mean total gross income fromall sources, without regard to whether a tax return is actually filed. Incomeshall not include life insurance benefits or receipts from borrowing or otherdebt.

(Code 1950, 58-760.1; 1971, Ex. Sess., c. 169; 1972, cc. 315, 616; 1973, c.496; 1974, c. 427; 1976, c. 543; 1977, cc. 48, 453, 456; 1978, cc. 774, 776,777, 780, 788, 790; 1979, cc. 543, 544, 545, 563; 1980, cc. 656, 666, 673;1981, c. 434; 1982, cc. 123, 457; 1984, cc. 267, 675; 1987, cc. 525, 546;1988, cc. 463, 466; 1989, cc. 555, 568; 1990, cc. 479, 486, 504; 1991, c. 63;1992, cc. 346, 383; 1993, cc. 14, 49, 66, 149; 1997, cc. 704, 710, 872; 1998,c. 361; 1999, c. 205; 2001, cc. 428, 457; 2002, cc. 9, 20, 171; 2004, cc. 5,6, 77, 78, 494, 503; 2005, cc. 214, 215, 224; 2006, c. 585.)