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Suffolk, VA – The Suffolk City Council voted unanimously Wednesday to direct the City Manager to prepare a proposed ordinance to establish a personal property tax relief program for qualified elderly and disabled residents. The move came after a staff report outlining the legal framework, potential eligibility rules, and estimated financial impact of such a program.

The discussion, held during the May 7 regular session, was prompted by a previous council directive. Director of Finance Charles Meek, presenting what was noted as likely his last staff report for the city, explained that Virginia state code sections 58.1-3506.1 through 3506.7 authorize localities to create personal property tax relief programs for the elderly and disabled.

Under state law, eligible individuals must be at least 65 years of age or permanently and totally disabled, as defined in the code. If established, the relief could apply to one automobile or pickup truck owned and used primarily by or for a qualifying applicant. Eligibility would also be subject to income and net worth restrictions set by the locality, which can be lower than state guidelines.

Meek provided examples from other Virginia localities:

• Virginia Beach: Maximum combined income of $29,500, net worth not exceeding $70,000 (excluding primary residence and one acre), with a tax rate set at $.000001
• Dinwiddie: Maximum income of $30,000, net worth of $75,000, providing a 100% exemption for qualified individuals.
• Falls Church: Maximum income of $20,000, combined assets of $150,000, and a maximum car tax relief of $25.

Meek acknowledged that projecting the precise fiscal impact of the program was “pretty difficult” due to a lack of specific data. 

The staff recommended initially setting the maximum income at $30,000 and net worth at $75,000 (excluding principal residence and one acre), establishing a $30,000 maximum vehicle assessed value to qualify, and setting an alternative rate of one cent per $100 of assessed value. Meek suggested this approach would align with other communities and allow the city a year or two and see how it impacts city finances before making adjustments.

During the discussion, Council Member Rector asked how the program would handle households with multiple vehicles and noted the requirement to still send a bill even if the tax rate was zero. He also publicly thanked Mr. Meek for his service, stating, “It’s been a pleasure working with you. You’ve always been available to me… thank you for what you’ve done for the city of Suffach and I know wherever you’re going will be better for having you there”.

Vice Mayor Ward then made a motion: “I’d like to make a motion to the to have the city manager to make an amendment to adopt the person property tax relief program for the elderly and the disabled… per recommendation”. Council Member Williams seconded the motion.

The motion to direct the City Manager to come back with an ordinance regarding the personal property tax relief program for the elderly and disabled was approved by a vote of 8 to 0.

The next steps will involve the City Manager finalizing the program parameters, including specific income and net worth requirements, and drafting a code amendment ordinance. This ordinance will then be brought back before the City Council for formal consideration and potential adoption at a future meeting.