Supervisors Debate Tax Relief Program
By: Jennifer Buske
Three members of the Stafford County Board of Supervisors debated Monday about the various aspects of the county’s tax relief program for the elderly and disabled.
The board first brought the issue up during its Dec. 4 meeting, but deferred it for further discussion.
Stafford’s commissioner of revenue, Scott Mayausky, said it is too late in the year for supervisors to change the criteria of who can apply for the program. However, they can adjust the program’s maximum credit per recipient, currently set at $2,000 a number representing what can be deducted from county income tax payments.
“We’ve lowered the cap and I want to put it back to where it was,” supervisor Paul Milde, R-Aquia, said. “…I’m looking out for the little people who don’t have much money and I don’t want them to get hurt.”
Although the cap rate is $2,000, it was $3,500 in year spast, Mayausky said, adding that Stafford had mandated no cap until 2005.
Milde said he wants the higher $3,500 cap to provide more relief to the “poorest” in the community.
Supervisor George Schwartz, D-Falmouth, said he agreed with Milde.
Supervisor Joe Brito, I-Hartwood, however, said he would rather see a lower cap to offer program benefits to more in the community.
“Raising the cap will be a road-block for the program,” Brito said. “A lot of people are slipping through the cracks and not on the program for one reason or another…I want to try and get these people and expand the program.”
In 2007, there were 706 individuals helped through the tax relief program, which cost the county just over $1.037 million, according to county documents. In 2006, when the cap was $3,500, 710 people were helped and it cost Stafford about $983,000.
Mayausky said there is no limit as to how much Stafford can spend on the program. He did, however, point out to supervisors that the number of elderly people in the community is expected to rise.
According to estimates board on Census information, Mayausky said there are about 7,000 residents 65 and older in Stafford, But, about 11,500 more between 55 and 64 could potentially soon qualify for the program.
According to Mayausky, tax relief for the elderly and disabled in Virginia is based on residents’ income and net worth, the latter representing a person’s total assets minus the value of their home and up to 20 acres of land. Mayausky said, for example, someone could have a million-dollar home and potentially still qualify for relief.
To qualify for 100 percent relief in Stafford, residents must be 65 and older or totally disabled, have a net worth not exceeding $300,000 and have a total household income under $35,000, Mayausky said, adding that the income measure includes stocks, bonds and other investments.
To qualify for 50 percent relief, the age and disability requirements remain. Applicants, however, must have a net worth not exceeding $200,000 and a total household income between $35,001 and $40,000, or have a net worth not exceeding $400,000 and a total household income of $30,000 or less.
The Virginia State Code states that localities can grant relief to elderly or disabled residents who have an income totaling $75,000 or less and whose net worth does not exceed $540,000. The state does not give guidelines regarding caps.
If supervisors decide to modify any part of Stafford’s tax relief program, they will have to conduct a public hearing and take a formal vote. Mayausky said the board has until March, at the latest, to do so.