Governmental Meeting

The Lynchburg City Council met on Tuesday for a Work Session. The meeting was recorded and streamed but did not have any participants from the public. The council met to amend the Code of the City of Lynchburg relating to real estate tax relief for the elderly and disabled.

Only elderly and disabled residents of Lynchburg with an income of less than $32,000 and a net worth of less than $60,000 qualified for tex relief. Lynchburg has seen a steady decline in the number of qualifying applicants over the last five years as 246 fewer residents were eligible this year than in 2016. Lynchburg Commissioner of the Revenue Mitchell Nuckles proposed an increase in the maximum income to $40,000 and an increase in the maximum net worth to $100,000. This would allow for more residents to qualify for the tax relief they need.

“More than 60% of our applicants that are not qualifying for relief are between that $32,500 $40,000 in income. Unfortunately we are losing so many applicants that the budgeted money we have will be sufficient to accommodate this change”.

Over $190,000 was leftover from last year's residential tax relief budget meaning that hundreds of residents in Lynchburg could have relief without any changes to the budget. Of the surrounding cities, Lynchburg has the second-lowest maximum income to qualify for real estate tax relief and the lowest maximum net worth. With the cost of living consistently getting higher, the elderly with fixed income need this relief more than ever.

Changing the maximum net worth for qualifying applicants will also help more residents get the relief they need. City Council Member Jeff Helgeson believes that this is a change that should have been made a long time ago. He mentions a couple who never made more than $12,000 but died millionaires. He says this to show how net worth is a poor way to judge a couple's financial state.

“Net worth should be bumped up to $100,000 as a minimum quite frankly because as you have that net worth that means you are thrifty and you saved as best as you could. The maximum net worth of $60,000 disincentivizes thrift.”

Commissioner of the Revenue Mitchell Nuckles added how difficult it is to tell an elderly couple they no longer qualify for relief because they saved too much money.

The proposal was passed with a 7–0 vote raising the maximum income to $40,000 and the maximum net worth to $100,000. This will allow for the hundreds of elderly residents that were previously denied to qualify for real estate tax relief. The full budgeted amount of $610,000 will now be put to good use.