Tax relief is a program for eligible seniors and disabled residents which provides relief of taxes through exemptions and deferrals. Tax relief is available to income-eligible seniors and individuals with disabilities through the Treasurer's Office. The deadline to submit your application is April 15 of each year. To qualify, the property owner must meet the follow two requirements:
Applicants must be current residents of the City of Falls Church and must have established their residency prior to December 31, 2016.
Applicants must be at least 65 years of age, or permanently and totally disabled.
Real Estate Tax Relief/Exemption
Relief means you are exempted from a specified amount of your taxes. The amount will depend on your household income and assets. This amount will be deducted from the taxes. Depending on the amount of taxes you owe, all or some of the taxes may be exempted. The household income limits to be eligible for a 2017 are:
Income Limit for Households Eligible for Relief and Deferral: $22,850 and below receives up to $4,000*. The balance of any taxes owed may be deferred.
Income Limit for Households Eligible for Relief and Deferral: $22,851 to $38,050 receives up to $3,000*. The balance of any taxes owed may be deferred.
Income Limit for Households Eligible for Relief and Deferral: $38,051 to $49,150 receives up to $1,000*. The balance of any taxes owed may be deferred.
Gross combined household income limit: $49,151- $75,000 deferral only.
Assets must not exceed $540,000.
*Based on a 1 person household. Income limits for 2 to 4 person households can be found on a chart within the application.
The applicant must be a veteran of the United States Armed Forces and be 100% permanent and totally disabled and the disability must be 100% service related.
Or; the applicant must be the surviving spouse of a veteran of the United States Armed Forces who was 100% permanent and totally disabled and the disability must have been 100% service related, as long as the death of the veteran occurs on or after January 1, 2011.
Relief for Surviving Spouse of Service Members Killed in Action
The applicant must be a surviving spouse of a member of the armed forces of the United States who was killed in action and who occupies real property to be exempted as his/her principal place of residence; and who has not remarried since death of spouse.
The property must be owned or held in certain types of trust by the surviving spouse; Ownership need not be solely by the surviving spouse, but if property is owned by surviving spouse together with others; then special rules will apply to calculate the amount of the exemption.
The applicant must sign a written statement, stating surviving spouse’s name, name of any other owners of the property and certifying that the property is occupied as the surviving spouse’s principal residence.
The applicant must provide documentation from the United States Department of Defense indicating the date that the deceased spouse was killed in action (a Department of Defense death certificate).
A deferral means that you may suspend paying your taxes until the property is sold or you are no longer the owner. Even if you receive a tax exemption, you can defer the remaining balance of your taxes due. If you are over the income limit for exemption but not above the deferral maximum income limit of $75,000, you may elect to defer all of your taxes.
Any deferred taxes must be repaid to the city and will include interest. Interest rates are changed annually and are set to the prime rate on January 1 of each year. The Prime Rate for 2017 is 3.75%.
Any City of Falls Church applicant for tax relief must own and reside in the home for which they are seeking relief. If the home is owned and titled by more than the primary tax relief applicant, then all income for all owners will be taken into account when calculating relief amounts. You will need all other titled owners to complete an application before April 15, 2017. Total financial worth, exclusive of the dwelling, household furnishings and 1 acre of land upon which the dwelling is situated, must not exceed $540,000 as of December 31, 2016. Special provisions apply for applicants living with relatives for the purpose of avoiding institutionalization. Certification forms will be provided upon request.
Personal Property/Automobile Decal Relief
Income limit for eligible households: $20,000 and below
Grant cap for Auto Decal Relief: $33
Grant cap for Personal Property Relief: $25
If the automobile for which the relief is sought is co-owned, all owners, expect the applicant's spouse, must be 65 years of age or older. Relief shall apply to only 1 vehicle per household. Leased vehicles are not eligible for personal property tax exemption. Total financial worth must not exceed $150,000
$1,700 cap on relief
Income limit for eligible households: $38,050 and below
Applicants must have paid rent for residential housing within the City of Falls Church during 2016. Special provisions apply for qualifying applicants residing in the city for less than the entire grant year. The total financial worth must not exceed $150,000 as of December 31, 2016.