AGENDA DATE: 11/5/2025
TITLE:
Schedule a Public Hearing to Consider the Adoption of an Ordinance to Modify Real Estate Tax Relief for Elderly and Disabled Persons
SUBJECT/PROPOSAL/REQUEST: Schedule a Public hearing to consider the adoption of an Ordinance to amend County Code Chapter 15, Taxation, Article 7, Real Property Tax, by modifying the criteria for real estate tax relief for elderly and disabled persons.
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Herrick, Ruege, Sumner, Bowman, Usher, Matheny, Lane, Spillman, Wilson
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: Staff is recommending expansion of the current program for Real Estate Tax Relief for Elderly and Disabled Persons by establishing two recurring annual adjustments to the program:
• Increasing the income limit to align to the current value for the U.S. Department of Housing & Urban Development Area Median Income (AMI) Limits, using the value for 80% AMI for a family of four in Albemarle County.
• Adjusting the net combined financial worth limit by the inflation adjusted value of $200,000 in January 2007 and rounded to the nearest $1,000.
Under Virginia Code § 58.1-3210, the County has authority to modify the qualifying criteria. The Board of Supervisors expressed support for this approach after reviewing staff’s analysis at the January 15, 2025, Board meeting, and scheduled this public hearing to consider adoption of an ordinance.
STRATEGIC PLAN: Mission - To enhance the well-being and quality of life for all community members through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: Albemarle County Code Chapter 15, Article 7, Division 2, Real Property Tax Exemption for Certain Elderly and Disabled Persons, describes the County’s real property tax relief program for elderly and disabled persons. Based on direction from the Board of Supervisor’s January 15, 2025 meeting, the proposed ordinance (Attachment A) would modify the current program criteria with the following:
• Adjust the maximum annual net income limit to align with the current value for the U.S. Department of Housing & Urban Development Area Median Income (AMI) Limits, using the value for 80% AMI for a family of four in Albemarle County.
• Adjust the maximum annual net combined financial worth to not exceed the inflation adjusted value of $200,000 in January 2007 and rounded to the nearest $1,000 for the calendar year immediately preceding the taxable year. This inflation adjustment will use the published Consumer Price Index for All Urban Consumers, U.S. City Average, or similar published inflation data for the calendar year immediately preceding the taxable year.
• Modify the three relief percentage brackets of 50%, 75%, and 100% to align with the maximum annual income threshold.
The change would be effective for Tax Year 2026, which will begin on January 1, 2026.
BUDGET IMPACT: The proposed modification to the Real Estate Tax Relief for Elderly and Disabled Persons program would decrease collectible tax revenues. For FY 27, the budgetary impact of increasing the income and net worth limits is estimated to be $120,000 and if approved, would be incorporated into the County Executive’s FY 27 Recommended Budget.
RECOMMENDATION:
Recommendation
Staff recommends that the Board schedule a public hearing to consider the adoption of the attached proposed ordinance (Attachment A).
ATTACHMENTS:
A - Real Estate Tax Relief for Elderly and Disabled Persons - Proposed Ordinance