Chapter 3.17
REAL ESTATE TAX EXEMPTION FOR U.S. MILITARY VETERANS AND SPOUSES OR SURVIVING SPOUSES

Sections:

3.17.010    General eligibility requirements.

3.17.020    Claimant’s application, affidavit and certification of disability.

3.17.010 General eligibility requirements.

Exemption pursuant to this chapter shall be granted to persons and for property complying with the following provisions:

(1) For tax years beginning on or after January 1, 2011, any veteran who has been rated by the U.S. Department of Veterans Affairs or its successor agency pursuant to federal law to have a 100 percent service-connected, permanent, and total disability, and who occupies the real property as the principal place of residence, shall be exempt from taxation of real property, including the joint real property of husband and wife. If the veteran’s disability rating occurs after January 1, 2011, and has a qualified primary residence on the date of the rating, then the exemption under this section begins on the date of such rating. However, the city shall not be liable for any interest on any refund due to the veteran for taxes paid prior to the veteran’s filing of the affidavit or written statement required by Section 58.1-3219.6 of the Code of Virginia and SCC 3.17.020 or successor provisions. If the qualified veteran acquires the property after January 1, 2011, then the exemption shall begin on the date of acquisition, and the previous owner may be entitled to a refund for a pro rata portion of real property taxes paid pursuant to Section 58.1-3360 of the Code of Virginia or successor provisions. The surviving spouse of a veteran eligible for the exemption set forth in this section shall also qualify for the exemption, so long as the death of the veteran occurred on or after January 1, 2011, and the surviving spouse does not remarry. The exemption applies without any restriction on the spouse’s moving to a different principal place of residence.

(a) For purposes of this exemption, real property of any veteran includes real property (i) held by a veteran alone or in conjunction with the veteran’s spouse as tenant or tenants for life or joint lives, (ii) held in a revocable inter vivos trust over which the veteran or the veteran and their spouse hold the power of revocation, or (iii) held in an irrevocable trust under which a veteran alone or in conjunction with their spouse possesses a life estate or an estate for joint lives or enjoys a continuing right of use or support. The term does not include any interest held under a leasehold or term of years.

(b) The exemption for a surviving spouse under this section includes real property (i) held by the veteran’s spouse as tenant for life, (ii) held in a revocable inter vivos trust over which the surviving spouse holds the power of revocation, or (iii) held in an irrevocable trust under which the surviving spouse possesses a life estate or enjoys a continuing right of use or support. The exemption does not apply to any interest held under a leasehold or term of years.

(c) In the event that a person is entitled to an exemption under this section by virtue of holding the property in any of the three ways set forth in subsection (1)(a) of this section and one or more other persons have an ownership interest in the property that permits them to occupy the property, then the tax exemption for the property that otherwise would have been provided shall be prorated by multiplying the amount of the exemption by a fraction that has as a numerator the number of people who are qualified for the exemption pursuant to this section and has as a denominator the total number of all people having an ownership interest that permits them to occupy the property.

(d) In the event that the primary residence is jointly owned by two or more individuals, not all of whom qualify for the exemption pursuant to disability or marital status as noted previously in this section, and no person is entitled to the exemption under this section by virtue of holding the property in any of the three ways set forth in subsection (1)(a) of this section, then the exemption shall be prorated by multiplying the amount of the exemption by a fraction that has as a numerator the percentage of ownership interest in the dwelling held by all such joint owners who qualify for the exemption pursuant to disability or marital status noted previously in this section, and as a denominator, 100 percent.

(2) For tax years beginning on or after January 1, 2015, the surviving spouse (i) of any member of the armed forces of the United States who was killed in action as determined by the U.S. Department of Defense and (ii) who occupies the real property as the principal place of residence shall be exempt from taxation of real property. For purposes of this section, such determination of “killed in action” includes a determination by the U.S. Department of Defense of “died of wounds received in action.” If such member of the armed forces of the United States is killed in action after January 1, 2015, and the surviving spouse has a qualified principal residence on the date that such member of the armed forces is killed in action, then the exemption for the surviving spouse shall begin on the date that such member of the armed forces is killed in action.

(a) Those dwellings in the locality with assessed values in the most recently ended tax year that are not in excess of the average assessed value for such year of a dwelling situated on property that is zoned as single-family residential shall qualify for a total exemption from real property taxes under this chapter. If the value of a dwelling is in excess of the average assessed value as described in this subsection, then only that portion of the assessed value in excess of the average assessed value shall be subject to real property taxes, and the portion of the assessed value that is not in excess of the average assessed value shall be exempt from real property taxes. Single-family homes, condominiums, town homes, manufactured homes as defined in Section 46.2-100 of the Code of Virginia or successor provisions whether or not the wheels and other equipment previously used for mobility have been removed, and other types of dwellings of surviving spouses, whether or not the land on which the single-family home, condominium, town home, manufactured home, or other type of dwelling of a surviving spouse is located is owned by someone other than the surviving spouse, that (i) meet this requirement and (ii) are occupied by such persons as their principal place of residence shall qualify for the real property tax exemption. If the land on which the single-family home, condominium, town home, manufactured home, or other type of dwelling is located is not owned by the surviving spouse, then the land is not exempt.

(b) The surviving spouse of a member of the armed forces killed in action shall qualify for the exemption so long as the surviving spouse does not remarry. The exemption applies without any restriction on the spouse’s moving to a different principal place of residence.

(c) The city shall provide for the exemption from real property taxes the qualifying dwelling pursuant to this section and shall provide for the exemption from real property taxes the land, not exceeding one acre, upon which it is situated. If the veteran owns a house that is his/her residence, including a manufactured home as defined in Section 46.2-100 of the Code of Virginia or successor provisions whether or not the wheels and other equipment previously used for mobility have been removed, such house or manufactured home shall be exempt even if the veteran does not own the land on which the house or manufactured home is located. If such land is not owned by the veteran, then the land is not exempt. A real property improvement other than a dwelling, including the land upon which such improvement is situated, made to such one acre or greater number of acres exempt from taxation pursuant to this subsection shall also be exempt from taxation so long as the principal use of the improvement is (i) to house or cover motor vehicles or household goods and personal effects as classified in Section 58.1-3503(A)(14) of the Code of Virginia and as listed in Section 58.1-3504 of the Code of Virginia or successor provisions, and (ii) for other than a business purpose.

(d) For purposes of this exemption, real property of any surviving spouse of a member of the armed forces killed in action includes real property (i) held by a surviving spouse as a tenant for life, (ii) held in a revocable inter vivos trust over which the surviving spouse holds the power of revocation, or (iii) held in an irrevocable trust under which the surviving spouse possesses a life estate or enjoys a continuing right of use or support. The term does not include any interest held under a leasehold or term of years.

(e) In the event that (i) a surviving spouse is entitled to an exemption under this section by virtue of holding the property in any of the three ways set forth in subsection (2)(c) of this section, and (ii) one or more other persons have an ownership interest in the property that permits them to occupy the property, then the tax exemption for the property that otherwise would have been provided shall be prorated by multiplying the amount of the exemption by a fraction that has one as a numerator and has, as a denominator, the total number of all people having an ownership interest that permits them to occupy the property.

(f) In the event that the principal residence is jointly owned by two or more individuals including the surviving spouse, and no person is entitled to the exemption under this section by virtue of holding the property in any of the three ways set forth in subsection (2)(c) of this section, then the exemption shall be prorated by multiplying the amount of the exemption by a fraction that has as a numerator the percentage of ownership interest in the dwelling held by the surviving spouse and, as a denominator, 100 percent. (Ord. 2019-36; Ord. 2019-02).

3.17.020 Claimant’s application, affidavit and certification of disability.

The veteran or surviving spouse claiming the exemption under SCC 3.17.010 shall file with the Commissioner of the Revenue in which the real property is located, on forms to be supplied by the city, an affidavit or written statement (i) setting forth the name of the disabled veteran and the name of the spouse, if any, also occupying the real property, (ii) indicating whether the real property is jointly owned by a husband and wife, and (iii) certifying that the real property is occupied as the veteran’s principal place of residence. The veteran shall also provide documentation from the U.S. Department of Veterans Affairs or its successor agency indicating that the veteran has a 100 percent service-connected, permanent, and total disability. The veteran shall be required to refile the information required by this section if the veteran’s principal place of residence changes or if there is a change in the veteran’s disability rating. In the event of a surviving spouse of a veteran claiming the exemption, the surviving spouse shall also provide documentation that the veteran’s death occurred on or after January 1, 2011. (Ord. 2019-02).