Hanover County makes real estate tax relief available for residents who are elderly or permanently disabled and who have a net worth of $300,000 or less, and combined household gross income of $52,500 or less.
The application period for the upcoming year begins January 3, 2023. The deadline is March 1, 2023 for the relief to be applied to the tax bills due (first half) on June 5, 2023.
The Board of Supervisors this year substantially increased the tax relief available for eligible elderly and disabled residents. These additional enhancements not only expanded the number of residents who may be eligible for the program but also increase the amount of relief for participants.
- Increased 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,
- Increased the maximum income levels within each program tier by $2,500, and
- Increased the percentage of relief by 5% in each program tier.
Provided below is a comparison of the previous program with the new thresholds and amounts:
$ 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 continues 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.
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.
About 1,280 households currently participate in Hanover County’s tax relief for the elderly and disabled program. The average tax savings is about $1,433 for those households; about 37% of the participating households pay no County real estate tax at all as a result of the program.
Because of this program, qualifying Hanover County residents had their real estate taxes reduced by about $1.8 million last year.
Disabled applicants must provide certification of disability. This can be a statement from the Social Security Administration, a statement from the Veterans Administration, a statement from the Railroad Retirement Board or a sworn affidavit from two (2) medical doctors.
Once an application is on file, only an affidavit is needed for the following two (2) years, unless there is a significant change in income or net worth. A new application is necessary only every third year. All information on the application is confidential and is not open to public inspection.
“This is a great program designed to help those taxpayers who most need the help,” said Scott Harris, Hanover’s Commissioner of the Revenue. “The increases in tax relief now available are very welcome to a large segment of our population, and we invite all residents who think they might qualify to call our office.”
You can call the Commissioner of the Revenue at 365-6128.
If you have computer access, here is an application renewal form.