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, (ii) owners' relativeswho live in the dwelling, and (iii) at the option of each locality,nonrelatives of the owner who live in the dwelling except for bona fidetenants or bona fide paid caregivers of the owner, shall not exceed thegreater of $50,000, or the income limits based upon family size for therespective 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). As an alternative option, a county, city, or town may provide thatthe total combined income received from all sources during the precedingcalendar year by (a) owners of the dwelling who use it as their principalresidence, (b) owners' relatives who live in the dwelling, and (c) at theoption of each locality, nonrelatives of the owner who live in the dwellingexcept for bona fide tenants or bona fide paid caregivers of the owner, shallnot exceed the county's or city's median adjusted gross income of its marriedresidents. Each county's or city's median adjusted gross income of itsmarried residents means the most recent median adjusted gross income ofindividual income tax returns of the married residents of the county or cityfor a taxable year as published by the Weldon Cooper Center for PublicService of the University of Virginia. A town's median adjusted gross incomeof its married residents shall equal the applicable county's median adjustedgross 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, and any amount up to $10,000 of income ofeach nonrelative who is not the bona fide tenant or bona fide paid caregiverof an 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 an owner qualifies foran exemption or deferral under this article, and if the owner can prove byclear and convincing evidence that his 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 person move in and provide care for the owner,and if a person does then move in for that purpose, then none of the incomeof the person or of the person's spouse shall be counted towards the incomelimit, provided the owner of the residence has not transferred assets inexcess of $10,000 without adequate consideration within a three-year periodprior to or after the person 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, Hampton, Newport News, Norfolk, Portsmouth,Richmond, Suffolk, and Virginia Beach and the Counties of Chesterfield,Goochland, Hanover, Henrico, and Powhatan, the board of supervisors orcouncil may, by ordinance, raise the income and financial worth limitationsfor any exemption or deferral program to a maximum of the greater of $67,000or 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), for the total combinedincome amount, and $350,000 for the maximum net combined financial worthamount, which shall exclude the value of the dwelling and the land, notexceeding 10 acres, upon which it is situated. Any amount up to $10,000 ofincome of each person who is not the spouse of an owner living in thedwelling may be excluded under this subdivision. In addition, as analternative option such cities and counties may use the median adjusted grossincome of its married residents, as determined under subdivision 1 a, for thetotal combined income limit and may also elect to annually increase the netcombined financial worth limit herein in the same manner as provided insubdivision 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 $75,000 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 person 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; 2007, cc. 60,587; 2008, cc. 144, 231, 298, 334, 695.)