The Hanover County Board of Supervisors has significantly increased tax relief for the elderly and disabled.
Changes adopted on April 13 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.
Here 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
$ 0 - $22,500
$ 0 - $25,000
$ 22,501 - $32,500
$ 25,001 - $35,000
$ 32,501 - $42,500
$ 35,001 - $45,000
$ 42,501 - $52,500
$ 45,001 - $55,000
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. 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.
The ordinance is 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.
Hanover County has offered this tax relief 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.