seniors

In 2015, 940 Arlington households took advantage of a tax relief program for seniors, thus avoiding $4.2 million in real estate taxes.

A new working group appointed by the County Manager will be conducting a “comprehensive review” of that program.

The program is currently offered to homeowners age 65 or older, with an annual income of up to $99,472 and household assets (excluding the home itself) up to $340,000. Depending on the income level and assets, the homeowners may qualify for a full or partial exemption. A deferral of taxes until the home changes ownership is available for any portion that’s not exempt.

The County Board included funds in the latest county budget for a review of the program.

“In conducting research for the [Affordable Housing Master Plan], the County found that many low-income senior households on fixed incomes face financial stress related to increasing condominium fee and real estate tax burdens,” said the new Real Estate Tax Relief Working Group charge. “The AHMP’s accompanying Implementation Framework included a recommendation to review the goals and guidelines of the RETR Program, and to consider redefinition of income levels, asset levels, and criteria for exemptions and deferrals.”

In the recent Arlington County Board primary, Board Chair Libby Garvey was criticized by Democratic challenger Erik Gutshall for supposedly “threatening the ability of our most vulnerable seniors to live in Arlington.”

Garvey explained that she wants to lower the eligibility barriers for the tax deferral program. She hinted, however, that the full tax exemption might be under additional scrutiny, as it can “provide quite a windfall” to a homeowner’s heirs once the home is sold.

The working group is tasked with presenting its final recommendations this winter, ahead of the Fiscal Year 2018 budget process.

The full county press release, after the jump.

(more…)