Among the items up for consideration by the Board of Supervisors on the public hearing on the County Administrator’s proposed budget on April 6 is a proposed increase in tax relief for eligible elderly and disabled residents.
Hanover County has offered this program for many years and the estimated 1,200 taxpayers that currently qualify realize an estimated average tax relief of about $1,270, with many paying no County real estate tax at all.
Given the severity and persistence of the COVID-19 pandemic, higher real property assessments, and continuing high inflation, the Commissioner of the Revenue and the County Administrator recommend that the Board of Supervisors further enhance the tax relief program that was originally presented on February 16th. These additional enhancements are believed to not only expand the number of residents who may be eligible for the program but also to potentially increase the amount of relief for participants.
The program enhancements and the amounts advertised for public hearing include:
- Increasing the net combined financial worth, excluding the value of the home, that may be held by elderly or disabled residents from $200,000 to $300,000,
- Increasing the maximum income levels within each program tier by $2,500, and
- Increasing the percentage of relief by 5% in each program tier.
Provided below is a comparison of the current program with the proposed recommended enhancements:
Existing Program - Net Household Worth: $200,000
Proposed - Net Household Worth: $300,000
Current Income | Current Relief | Amended Income | Proposed Relief |
$ 0 - $22,500 | 100% | $ 0 - $25,000 | 100% |
$ 22,501 - $32,500 | 75% | $ 25,001 - $35,000 | 80% |
$ 32,501 - $42,500 | 50% | $ 35,001 - $45,000 | 55% |
$ 42,501 - $52,500 | 25% | $ 45,001 - $55,000 | 30% |
The estimated amount of tax relief for eligible participants will continue to be based on a sliding scale but with an increase in the total income limits and an increase in the percentage of relief for each program tier. As proposed, qualified residents with income of less than $25,000 will pay no tax; those with an income of $25,001-$35,000 would receive 80% tax relief; those with an income of $35,001-$45,000 would receive 55% tax relief; and those with an income of $45,001-$55,000 would receive a 30% reduction in their real estate tax bill.
If approved by the Board, the ordinance will be effective retroactively to January 1, 2022.
Applicants must be 65 years or older or permanently disabled and must own or partially own the property and have lived in it on December 31. If the applicant is in a hospital or extended care facility, he or she may still qualify as long as the house is not rented or leased.
The Board’s April 6 public hearing on the County Administrator’s proposed budget for Fiscal Year 2022 will begin at 6 p.m. and will be held in the Board of Supervisors meeting room at Hanover Courthouse.