§ 40-52.2. General prerequisites to grant of tax exemption; effect of residency in hospital, nursing home, etc.; proration.

(a)

Exemption shall be granted to persons subject to the following provisions:

(1)

The title to the property is held or partially held on July 1 of the taxable year, by the person or persons claiming exemption for the said property.

(2)

Such real estate shall be owned and occupied as the sole dwelling of a person who is sixty-five (65) years of age or older on December 31 of the calendar year immediately preceding the taxable year.

(3)

Real property owned and occupied as the sole dwelling of an eligible person includes real property:

(i)

Held by the eligible person alone or in conjunction with his spouse as tenant or tenants for life or joint lives;

(ii)

Held in a revocable inter vivos trust over which the eligible person or the eligible person and his spouse hold the power of revocation; or

(iii)

Held in an irrevocable trust under which an eligible person alone or in conjunction with his spouse 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.

(4)

Subject to subparagraph (7), of this section, the total combined income received from all sources during the preceding calendar year by:

(i)

Owners of the dwelling who use it as their principal residence;

(ii)

Owners' relatives who live in the dwelling, except for those relatives living in the dwelling and providing bona fide caregiving services to the owner whether such relatives are compensated or not; and

(iii)

Non-relatives of the owner who live in the dwelling, except for bona fide tenants or bona fide caregivers of the owner, whether compensated or not,

shall not exceed the greater of twenty-five thousand dollars ($25,000.00). Any amount up to ten thousand dollars ($10,000.00) of income of each relative who is not the spouse of an owner living in the dwelling and each non-relative who is not the bona fide tenant or bona fide caregiver of an owner living in the dwelling and who does not qualify for the exemption provided by subparagraph (7) hereof is hereby excluded from the total combined income calculation.

(5)

The net combined financial worth, as determined by the city manager, including the present value of all equitable interests, as of December 31 of the immediately preceding calendar year, of the owners, and of the spouse of any owner, excluding the value of the dwelling and the land, not exceeding one acre, upon which it is situated shall not exceed ten thousand dollars ($10,000.00). The value of the owner's furnishings that are located in the dwelling are also excluded from the determination of the net combined financial worth. Such furnishings shall include furniture, household appliances and other items typically used in a home.

(6)

An eligible person must show that forty (40) percent of the total combined income detailed in subsection 40-52.2(4) is expended on housing costs for the qualifying dwelling and real property. Housing costs include, but are not limited to, utility bills and mortgages associated with the dwelling.

(7)

Notwithstanding subparagraph (4) of this section, if a person qualifies for an exemption under this article, and if the person can prove by clear and convincing evidence that the person's physical or mental health has deteriorated to the point that the only alternative to permanently residing in a hospital, nursing home, convalescent home or other facility for physical or mental care is to have a relative move in and provide care for the person, and if a relative does then move in for that purpose, then none of the income of the relative or of the relative's spouse shall be counted towards the income limit, provided the owner of the residence has not transferred assets in excess of ten thousand dollars ($10,000.00) without adequate consideration within a three-year period prior to or after the relative moves into such residence.

(b)

The fact that persons who are otherwise qualified for tax exemption pursuant to this division reside in hospitals, nursing homes or other facilities for physical or mental care for extended periods of time shall not be construed to mean that the real estate for which tax exemption is sought does not continue to be the sole dwelling of such person during such extended periods of other residence so long as such real estate is not used by or leased to others for consideration.

(c)

A change in ownership of the subject property to a spouse which results solely from the death of the qualifying individual or a sale of such property shall result in a prorated tax or exemption for the then current taxable year if such application for exemption was properly and timely filed and approved.

(d)

For the purposes of this division, income shall mean total gross income from all sources, without regard to whether a tax return is actually filed. Income shall not include life insurance benefits or receipts from borrowing or other debt.

(Ord. No. 7294-16, § 1)

(Ord. No. 7294-16, § 1)