Is Tax Relief for the Elderly Luring New Residents, and Is This a Bad Thing? (Fairfax: sales, real estate)

[Caladium]

For 39 years, Loudoun County has had one of the most generous real property tax relief programs for the elderly and disabled in Virginia. It allows for a full exemption from real estate taxes on a home and up to 3 acres with a $72,000 income limit, regardless of household size.

This program has substantially grown during the last decade, according to the Commissioner of the Revenue. In 2001, 689 properties were exempt, providing a total of $756,508 in tax relief. By 2010 1,992 properties were exempt, totaling $6.7 million in relief.

So what do you think about this? The Board of Supervisors is currently debating amendments to the program, and presented these opposing viewpoints:

Supervisor Eugene Delgaudio (R-Sterling) is concerned that the current tax policy makes Loudoun County a target for people shopping for the best deal.

“The premise is to take care of our own people. But what has happened over the years is that there’s a number of people coming into the system from outside the county that have never paid into the county tax system,” Delgaudio said.

However, others like Supervisor Sally Kurtz (D-Catoctin) said shopping for the most affordable place to live is a common practice and one that shouldn’t be looked upon unfavorably.

Sounds like a good topic for a debate to me. What do you guys think?


Board continues elderly tax relief criteria discussions | LoudounTimes.com

[VRE332]

if you own a property in Loudoun more than 0.1 of an acre, you should be paying property taxes just like everyone else. Not that I am FOR taxes, but it just seems fair.

[Carlingtonian]

I don't believe in property taxes. I think all taxes should be based on income. Think about, say, a guy who works as a schoolteacher. He inherits his parents' farm. The taxes are $15 grand a year. So he has to sell it--most likely to a developer. I don't think that's right.

I don't know what trends are happening in Loudoun, but if this policy is allowing older people who are longtime residents to stay in their homes on fixed incomes (rather than pay ever-increasing property taxes that have recently skyrocketed), then I think that's a good thing.

If the county government needs more money to pay for the new infrastructure needed because of new residents, then the new residents should pay for that, not the people who have been there for 30 years. And my understanding is that the new residents are doing quite well financially.

[Smoke_Jaguar4]

Reading the Loudoun county threads, it appears that their school system is straining. This could be read as an attempt to attract more senior citizens to push young families out of the county. Furthermore what services does Loudoun county offer for their senior populations? Do revenues from sales taxes on senior spending cover the shortfall?
Overall, does it make sense to exempt a group with a lot of disposable income? Why not tax breaks for everyone else?

[TyroneBiggums]

Got to agree with VRE332. Everyone should pay their share.

Also got to agree with Carlingtonian to a certain degree. I don't know what's happening in Loudoun, but in Fairfax County, property tax is a cash cow. My taxes have increased every year since I got here, and my pay hasn't increased at the same rate. Another story for another day I suppose.

Why not tax consumption? A young family of 4 will consume a lot more services than a retired elderly couple. That way, people pay for what they use, and no one has to subsidize anyone else.

[brooklynborndad]

I thought the reason for property tax breaks for the elderly was to keep lower income elderly owners from being forced out by rising assesments caused by rising property values - I believe thats called a circuit breaker. The law in Loudoun appears different from that. Without knowing what the goal of the program is, and not being a citizen of Loudoun County, I do not feel in a position to criticize it.

[brooklynborndad]

Originally Posted by Smoke_Jaguar4

Reading the Loudoun county threads, it appears that their school system is straining. This could be read as an attempt to attract more senior citizens to push young families out of the county.

Maybe not to push young people out so much, as to charge a lower tax to those who use less of the most expensive and capacity constrained county service? Kind of like a user fee? I don't know, I could see the rationale for that.

[normie]

Ha ha ha ha ha ha does Delgaudio really think people move to Nova because it's a cheap place to retire? Really? Ha ha ha ha ha ha ha ha.

I am very happily retired here, but there is no way that Nova is drawing grinchy geezers looking for a bargain.

[brooklynborndad]

Originally Posted by normie

Ha ha ha ha ha ha does Delgaudio really think people move to Nova because it's a cheap place to retire? Really? Ha ha ha ha ha ha ha ha.

I am very happily retired here, but there is no way that Nova is drawing grinchy geezers looking for a bargain.

I read him as saying seniors are picking Loudoun over, say, Fairfax or MoCo, not that they are picking NoVa over Arizona or North Carolina.

[normie]

The easiest solution would be to put a time qualifier on this benefit. They could say that someone needs to live here at least ten years to qualify for the program. That would keep any bargain hunters away.

By the way, what's wrong with shopping for the best deal? How is that any different from people who choose where to live by shopping for the best school district? Retirees have to be budget conscious, that's just part of reality.