Getting by
Learn about tax relief for seniors
By Katherine Peters CONTRIBUTING WRITER

Page Dowdy/Chesterfield Observer Larry Klebert, 81, is one of the county's seniors who does not qualify for the county's tax relief plan despite living on a fixed income. His taxes went up $350 this year.

Residential estate assessments in Chesterfield jumped an average of 16.6 percent this year, a giant leap for anyone. But for Ampthill resident Larry Klebert, the jump was even higher: 35 percent.

"When you're retired and on a fixed income, it hurts!" said 81- year-old Klebert.

In an attempt to minimize the cost, Klebert looked into Chesterfield County's Tax Relief for the Elderly/Disabled Program, but did not qualify for any relief.

"I downloaded the requirements for it, and I couldn't meet it because [the limit] was so ridiculously low," he said. "It's pretty hard to qualify unless you're just about in poverty." As a result, Klebert will pay an additional $350 in taxes this year without assistance.

"The old saying goes, whatever goes up comes down, but it's not likely to go down on the real estate assessment," Klebert said tongue-in-cheek.

In spite of the rising costs of living in Chesterfield, however, Klebert plans to stay put, saying that buying another house would likely require financing, costing him money again. "You can't afford to lose your home," he said.

While Chesterfield County offers disabled and senior citizens graduated levels of tax relief on real estate and mobile homes, many on fixed incomes may not qualify. To be eligible, total annual household income must be under $52,000 and total assets - excluding the dwelling itself and up to 10 acres - must be under $169,100, adjusted for liabilities. But, the actual relief only applies to the dwelling and the first acre of land, with a maximum abatement of $2,000.

Henrico County administers a similar tax relief program, the Real Estate Advantage Program (REAP). According to Henrico's Web site, total household income must be under $52,000 - the same amount as Chesterfield - but the allowable amount of total assets is $350,000 - twice as high as in Chesterfield.

"Not everyone has a lot of money. Some people are just living on Social Security and not much else, and you want people to be able to remain in their homes," said Diane Peterson, senior advocate for Chesterfield County.

The maximum household income and net worth amount for real estate tax relief increases each year, according to Peterson. But assessments are creeping higher still, raising questions of whether tax relief is rising in proportion.

Last year, a total of 1,955 Chesterfield seniors took advantage of the program along with 391 disabled citizens, doling out $2.5 million in tax relief for fiscal year 2006, according to the Commissioner of the Revenue's Office. Chesterfield is home to just under 29,000 people over age 65, meaning less than 7 percent of area senior citizens received tax relief last year.

More people may be eligible, however, than currently take advantage of the program.

"Some people don't know about it even," Peterson said. "With any program, you have to educate people. You try to promote your program and get the word out."

Even if a household's total assets and income were too high in the past, Peterson encourages people to look at their finances again as they age.

"These folks have accumulated wealth and resources, but as they get older they spend it. They've had to spend down their resources to live," she said. As assets are used, people may become eligible for the tax break.

For those who are eligible, such as Floyd H. O'Brien Jr., the tax relief is often the difference between staying in their homes and being forced out.

From 2000 until now, O'Brien, 64, has been granted tax relief, helping him cope when oil prices skyrocketed three years ago. He adds that it would have been "almost impossible" to pay both fuel costs and his real estate tax.

"We didn't have to worry about paying the real estate tax. It gave us savings for the heating during the winter and some extra dollars for air conditioning on the electric bill, too," O'Brien said.

O'Brien has been a resident of Chesterfield since 1956 and moved to the Ampthill community in 2000 to care for his late mother. He and his wife rely on disability and Social Security for their main income.

Although O'Brien missed the deadline for filing this year due to uncertainty concerning his mother's death in February, he plans to reapply next year.

"I'm looking forward to doing that as soon as everything is finalized," he said. "[The program] has been very, very good for all of us who have been subject to receive the benefits."

For 2007, first-time applications are due by Dec. 31. Renewals were due April 1.

To download an application, visit www. chesterfield.gov, select "Commissioner of the Revenue" under "County Departments," click on "Individual's Section," and then click on "Tax Relief for Elderly/Disabled." For questions or assistance, call the Commissioner of the Revenue's Office at 748-1281.