HD41 - Real Estate Tax Relief Programs for the Elderly

  • Published: 1989
  • Author: General Assembly. Joint Subcommittee
  • Enabling Authority: House Joint Resolution 138 (Regular Session, 1989)

Executive Summary:
The 1988 General Assembly established this joint subcommittee to reexamine the Commonwealth's real estate tax relief program for the elderly to determine whether the eligibility requirements, filing procedures and administrative provisions should be revised to ensure that the most equitable criteria are employed in granting real estate tax relief for the elderly. The joint subcommittee examined the following issues related to the real estate tax relief programs for the elderly:

1. General characteristics of the Commonwealth's population age 65 and over;

2. Major features of the Commonwealth's local real estate tax relief programs;

3. Real estate tax relief programs in other states;

4. Legislative history of the constitutional and statutory provisions relating to the state eligibility requirements for real estate tax relief for the elderly; and

5. Solutions to resolve administrative problems associated with the real estate tax relief program.

Delegate C. Hardaway Marks, Chairman, held two meetings of this joint subcommittee during the course of this study. The first meeting focused primarily on background information and identifying problems encountered in administering the real estate tax relief program, as well as hearing from interested citizens about local programs. The second meeting was primarily a work session in which the joint subcommittee examined problems and reviewed alternative solutions to bring greater equity to the real estate tax relief program for the Commonwealth's elderly.

The joint subcommittee determined that the Commonwealth's elderly population is the fastest growing segment of Virginia's population, as is indicated by the 19.8% increase in this portion of the population since 1982. Additionally, 10.87% of the Commonwealth's total population is comprised of citizens age 65 and over, who primarily live in the regions of Northern Virginia, Tidewater, and Richmond. Since approximately three-fourths of citizens age 65 and over own their own homes, the joint subcommittee was concerned that the soaring real estate tax rates and assessments that have occurred in Virginia's localities may impose an undue tax burden on elderly citizens whose incomes have been substantially reduced as a result of retirement.