Henrico supervisors approve program to cap real estate taxes for senior, disabled citizens

At its Sept. 27 meeting, the Henrico Board of Supervisors approved an ordinance creating the Real Estate CAP Program (or RECAP) to cap real estate taxes for qualifying elderly and disabled residents beginning in 2024.

“This is one of those times that Henrico is doing something that is a little ahead of other localities,” said Henrico County Manager John Vithoulkas.

The program builds upon the existing Henrico Real Estate Advantage Program (REAP), which provides a real estate tax exemption of up to $3,200 for qualifying homeowners with a household income up to $75,000 and a net worth up to $500,000.

To qualify for RECAP, homeowners will need to be at least age 65 or totally and permanently disabled with a maximum household income of $105,000 and a net worth of $700,000, excluding the value of their home and up to 10 acres. The program, which will cap the annual real estate tax bill of qualifying homeowners so that it never exceeds the amount billed when they enter the program, will take effect for the 2024 tax year.

In subsequent years, participants will receive a real estate tax exemption equal to the difference between their new tax amount and their base year’s tax amount. In effect, tax bills will not increase for those who remain qualified, even if assessments rise. If a RECAP participant’s tax drops below the base year amount due to a lower assessed value or tax rate, their bill will reflect the lower amount. The participant would need to reapply to the program to establish the lower tax amount as their new base amount.

Homeowners will be able to apply for RECAP and REAP on the same form beginning in February; the deadline for applications is April 1.

Public comments were largely positive, though all commenters felt the program should be expanded ever further.

One citizen commented that the $700,000 net worth cap was too low and suggested it might be raised or eliminated, saying “I need to make my money last the rest of my life.”

Another citizen felt that the need for an inventory of one’s personal wealth might not fairly count assets, such as situations in which the same amount of wealth is kept in a retirement account. She suggested that the program should adjust its benefits upwards incrementally as citizens aged.

“It is ground-breaking. No one else in the state of Virginia has ever done this, and there’s nothing like it nation-wide,” responded Three Chopt Supervisor Tommy Branin, who had initially proposed the possibility of a program to cap real estate tax payments. “The first idea had a lot more grandeur and we in Henrico are very conservative in what we do. I don’t believe tabling it will do justice to the community. This has been set up to do an entry and then can always adapt and change as we go forward. I am darn proud that this county is the first one.”

– Joseph Maltby contributed to this article