City Council Regular Meeting


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CL-2755 Old Business   Item #: A.       
Meeting Date: 05/17/2022  
Subject:    City Code Change - Elderly and Disabled Real Estate Tax Exemption
From: Michael Adkins

First Reading:      05/03/2022                                                                      
Final Adoption: 05/17/2022
This ordinance will change Danville City Code Sections 37-62 and 37-66 with regard to the City's Elderly and Disabled Real Estate Tax Exemption Program.  The maximum allowed income will be increased from $20,000 to $30,000, allowing increased participation in the exemption program.  In addition, the option for qualified applicants to defer real estate tax will be replaced with an exemption of tax.
Danville City Code Sections 37-62 and 37-66 provide for the exemption or deferral of real estate taxes for qualifying elderly or disabled citizens.  Currently, those who are at least 65 years old and have household income of $20,000 or less qualify for this program.  An exemption of 100% of real estate taxes is granted to those with income of $10,000 or less; 50% exemption to those with income between $10,001 and $15,000; and 100% deferral to those with income between $15,001 and $20,000.  The income limits for this program have not been adjusted since its inception several decades ago.  In addition, the deferral program often results in an unanticipated tax burden for surviving family members that often goes unpaid.  For these reasons, staff is suggesting to increase the income limit from $20,000 to $30,000 and replacing the deferral option with an exemption.

The suggested code change will provide qualifying applicants 100% exemption for income between $0 and $15,000 and 50% exemption for those with income between $15,001 and $30,000.  Because the exact household income of citizens and the number of households that will qualify under new income limits is unknown, it is difficult to estimate the budgetary impact of changes to this program.  Staff is recommending this as an initial change.  Once the financial impact of this change is realized, consideration can be given to additional changes.
Staff recommends adoption of the attached ordinance to incorporate the suggested changes to the City's tax exemption program for the elderly and/or the permanently and totally disabled. 



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