CODE OF VIRGINIA

PRORATED TAX EXEMPTION OR DEFERRAL OF TAX (§ 58.1-3211.1)

A. The governing body of the county, city, or town may, by ordinance, also
provide for an exemption from or deferral of (or combination program thereof)
real estate taxes for dwellings jointly held by two or more individuals not all
of whom are at least age 65 or (if provided in the ordinance) permanently and
totally disabled, provided that the dwelling is occupied as the sole dwelling by
all such joint owners.The tax exemption or deferral for the dwelling that
otherwise would have been provided under the local ordinance shall be prorated
by multiplying the amount of the exemption or deferral by a fraction that has as
a numerator the percentage of ownership interest in the dwelling held by all
such joint owners who are at least age 65 or (if provided in the ordinance)
permanently and totally disabled, and as a denominator, 100%. As a condition of
eligibility for such tax exemption or deferral, the joint owners of the dwelling
shall be required to furnish to the relevant local officer sufficient evidence
of each joint owner’s ownership interest in the dwelling.

B. For purposes of this subsection, “eligible person” means a person
who is at least age 65 or, if provided in the ordinance pursuant to subsection
A, permanently and totally disabled. For purposes of the tax exemption pursuant
to subsection A, real property that is a dwelling jointly held by two or more
individuals includes real property (i) held by an eligible person in conjunction
with one or more other people as tenant or tenants for life or joint lives, (ii)
held in a revocable inter vivos trust over which an eligible person with one or
more other people hold the power of revocation, or (iii) held in an irrevocable
trust under which an eligible person in conjunction with one or more other
people possesses a life estate or an estate for joint lives or enjoys a
continuing right of use or support. The term “eligible person” does
not include any interest held under a leasehold or term of years.

C. The provisions of this section shall not apply to dwellings jointly held by a
husband and wife, with no other joint owners.

D. Nothing in this section shall be interpreted or construed to provide for an
exemption from or deferral of tax for any dwelling jointly held by
nonindividuals.

HISTORY: 2007, c. 357; 2008, cc. 298, 695; 2011, cc. 438, 496; 2014, c. 767.