Tax Exemptions

TAX FREEZE --- New beginning with 2006 Tax year!

The Tax Freeze is an option that provides an exemption for those taxpayers who are either age 65 or older on December 31 of the preceding tax year or are permanently and totally disabled.

The eligibility requirements regarding income, net worth and income of others in the household, for the Tax Freeze program are the same as the eligibility requirements for the tax relief for the elderly and disabled noted below.

What does the Tax Freeze offer me?
1. A choice. You may apply for either the Tax Freeze or Tax Relief program, but not both; and,
2. A total exemption of the increase in your real estate taxes from the date you first apply and qualify for this tax exemption.
   For example: You, or your spouse, are age 65. The assessed value of your home, at the time you apply for the exemption, is $100,000 (tax year 1). In the next tax year (tax year 2), the assessed value of your home increases 10% to $110,000. The tax rates for tax years 1 & 2 are the same: $1.29 per $100 of assessed value.
   
   In tax year 1, you apply for the Tax Freeze program. What is your tax liability in tax years 1 and 2?
   
   Tax year 1: $1,290 ($100,000 x $1.29 per $100 of assessed value)
   Tax year 2: $1,290 ($100,000 x $1.29 per $100 of assessed value)

What have you saved in tax year 2 by applying for the Tax Freeze program? $ 129.

Important Note: To keep the benefits of the tax freeze program, the taxpayer must pay their portion of the real estate taxes by the tax due date of June 15. Failure to do so will void the tax freeze.

Tax Relief for the Elderly & Disabled

The City of Richmond offers tax relief for certain elderly and/or permanently disabled property owners. To qualify for the Elderly and Disabled Tax Exemption, the head of the household occupying the dwelling and owning title, or partial title thereto, must be sixty-five years old or older on December 31 of the year immediately preceding the taxable year. The dwelling for which the tax exemption is sought must be occupied as the sole dwelling of the person sixty-five years of age or older.

The head of the household occupying the dwelling and owning title, or partial title thereto, who is permanently and totally disabled and under sixty-five years of age may also qualify for this tax exemption.

For more information regarding eligibility requirements, application forms and other information regarding the Elderly and Disabled Tax Exemption, click here. ( Link for click here to connect to: http://www.richmondgov.com/forms/TaxRelief.aspx)