Henrico County in Virginia recently approved a new tax relief program that will benefit older or disabled qualifying homeowners. Specifically, the new Henrico County tax relief program will cap qualifying homeowners’ real estate tax bills. The objective of the tax relief program is to ease the burden of higher costs associated with rising property values on older or disabled homeowners.
New Henrico County Tax Relief Program: What Is It?
Last week, the Board of Supervisors unanimously approved the new Henrico County tax relief program, called the Real Estate CAP Program (RECAP). This program will take effect for the 2024 tax year, while the deadline to apply is April 1.
Three Chopt District Supervisor Tommy Branin first proposed the concept of RECAP. Branin believes RECAP is one of the most effective ways to offer additional tax relief to the county’s most vulnerable residents, especially those living on fixed incomes.
The Real Estate CAP Program builds upon the existing Henrico Real Estate Advantage Program (REAP). Under the REAP program, qualifying homeowners (those with household income up to $75,000 and a net worth of up to $500,000) receive a real estate tax exemption of up to $3,200.
Under the new Henrico County tax relief program (RECAP), qualifying homeowners will receive real estate tax exemptions equaling the difference between their new and base year’s tax amount. It means that the tax bills of the qualifying homeowners won’t rise.
In other words, the program allows qualifying senior citizens and people with disabilities to lock in their real estate bills to ensure their total doesn’t exceed the amount they paid when they entered the program, even if real estate assessments rise.
On the other hand, if the homeowners’ real estate tax drops below the base year amount due to a lower assessment or tax rate, the homeowner’s tax bill will also be reduced. However, homeowners will need to re-apply to set the lowest tax bill as their new base total.
To make the application process convenient, homeowners can apply for the REAP and RECAP on the same form starting in February.
Real Estate Cap Program: Who Qualifies For It?
To qualify for the new Henrico County tax relief program, a homeowner must be at least 65 years old or be totally and permanently disabled. Also, the homeowners’ household income must not be more than $105,000, while net worth (excluding the value of their home and up to 10 acres) must not be more than $700,000.
Henrico County’s real estate tax relief programs offer more tax relief than other similar programs statewide. The programs not only offer 100% tax exemption but also set new thresholds for household income and net worth.
Henrico County’s RECAP follows other recent tax relief measures from the county, bringing the total estimated relief to $26.3 million in 2023. Other tax relief measures include $11.5 million from REAP, $11.2 million from a real estate tax credit and $3.6 million from a personal property tax rate cut.
