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Stafford reinstates tax break for elderly

Tax relief cap for elderly goes back up in Stafford

Date published: 2/11/2008

BY KAFIA HOSH

In the fall of 2006, Stafford County officials expanded their tax-relief program to help more residents on fixed incomes.

They increased the limits on net worth for the elderly and disabled so more people could qualify for a real estate tax break.

But as the program expanded, county officials also decreased the maximum tax-relief amount from $3,500 to $2,000.

Suddenly, 140 of the 706 people on the program no longer qualified for complete tax relief, according to Commissioner of the Revenue Scott Mayausky.

"Most of those people had no tax liability up until the time they lowered the cap," he said.

The Board of Supervisors considered raising the cap again recently. Aquia District Supervisor Paul Milde proposed the limit go back up to $3,500.

"I have personally met three people who, up until last year, weren't paying any taxes," he said during a public hearing last month. "They're all widows. And they're all long-time residents."

Last week, supervisors voted 6-1, to increase the cap to $3,000.

Milde actually voted against the increase because it was still $500 less than he wanted.

"We've made a lot of progress. I want it back up to $3,500 where it used to be," he said.

With the cap raised to $3,000, the county will lose about $65,000 in tax revenue each year. And as Stafford faces an estimated $6 million budget shortfall this year, some questioned the fiscal impact of raising the maximum.

"If the real estate tax rate is raised this year, the impact will be more," Hartwood District Supervisor Joe Brito said. "I think we really have to look at the long-term implications of this ordinance."

A $3,500 cap would cost the county an additional $9,000 in tax revenue loss. But about 23 people on the program, who once qualified for a full break, would still have to pay some real estate tax, according to Mayausky.

"The county is not going to feel that $9,000 cost, but those folks who are still having to pay that tax bill, that's real money to them that can create a real hardship," he said.

To get real estate tax relief in Stafford County, residents 65 years or older, or those who are permanently disabled, must meet one of the following conditions: Those who earn a maximum of $30,000 and have a net worth less than $400,000, pay half of their taxes. Those who earn a maximum of $40,000 and have a net worth less than $200,000 pay half of their taxes. Those who earn a maximum of $35,000 and have a net worth less than $300,000 pay no taxes. Relief per household can not exceed $3,000. Income includes all of the income of both husband and wife, except the first $10,000 of any relative living in the home. If totally disabled, $10,000 of income may be deducted from total income. Each person accepted to the program can own up to 20 acres without having it count against net worth.

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Date published: 2/11/2008

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