Real Estate Advantage Program (REAP)

New For 2012

Pursuant to the Henrico County Code, persons qualifying for exemption are deemed to be bearing an extraordinary real estate tax burden in relation to their income and financial worth. The Real Estate Advantage (REAP) is a tax exemption for qualified seniors, residents that are 100 percent permanently and totally disabled, and their spouses which relieves real estate tax up to a maximum of $3,000.

• Maximum taxable income is $67,000
• Maximum net worth allowed is $350,000
• Maximum exemption awarded is $3,000
• Filing deadline is April 2nd

Qualifications

• Applicant(s) must be at least 65 years of age OR 100 percent permanently and totally disabled
• Applicant(s) must occupy as the sole dwelling the residence in question
• Applicant(s) must hold title to the residence
• Applicant(s) and spouse may not have a combined taxable income exceeding $67,000, including Social Security
• The income of relatives living in the dwelling must be included in the taxable income total excluding the first $10,000 of the relative's earnings
• Maximum net worth of resident, spouse, and relatives may not exceed $350,000
• Applicants applying who share ownership of the residence or other unrelated persons living in the residence, but not married to applicant, must all apply and must all qualify to receive eligibility for REAP

The initial REAP application and certification forms must be completed and submitted for the qualifying year by April 1st, with the Revenue Division. Hardship cases will be considered through December 31st. The application and certification forms are available for pick up and submission at either center or can be printed off form this website and mailed to:

Renewal and Reapplication

After the initial application and certification have been completed, submitted, and approved for the first year the applicant need only renew annually for the next two years. Upon the fourth year of qualifying for REAP the applicant must reapply for their application and certification.

Income and Net Worth

As of July 1, 2011 the County will be looking at the combined taxable income of the applicant and spouse, which cannot exceed $67,000 from all sources including Social Security, salaries, wages, pension/annuity, interest income, dividend income, capital gains, business income, rents received, welfare, and gifts, etc. income of relatives living in the residence will be included in the combined taxable income minus the first $10,000 of their earnings.

The maximum net worth allowed for an applicant and spouse or co-owner and applicant is $350,000 as of December 31st. The dwelling and up to 10 acres of land upon which it is situated is excluded from the net worth. items considered in the calculation of net worth are vehicles, checking accounts, savings accounts, certificates of deposit, stocks, bonds, and life insurance polices with cash value. Proof of all income and net worth should be included with the application.

Documentation Needed

Whether you are submitting an application at your local government center in person or mailing an application in, supporting documentation for each entry of income and net worth must be included with all applications. Such documents needed include photocopies of:

• End of the year statements of income (previous year)
• End of the year checking and savings account statements (previous year)
• End of the year statements showing values of stocks owned (previous year)
• First time applicants need a copy of their birth certificate or driver's license as proof of age
• Proof of disability is required for those under 65 years only. A certification from the social Security Administration, such as an awards letter, will suffice or a letter from the Railroad Retirement Board, Department of Veteran Affairs, or two signed affidavits from Virginia licensed doctors to the effect that such person is permanently and totally disabled.
• Affidavits for disability may be obtained from the Revenue Division offices.

Disqualification

Failure to complete application or certification in its entirety will disqualify applicant from the County of Henrico Real Estate Tax Advantage Program. Supporting documentation for each entry of income and net worth must be included with all applications.

During the year, should any changes occur in the income or net worth of a qualified applicant she/he must immediately report the changes to the Revenue Division. In the case of disqualification during the year because of an increase in net worth and/or income an applicant can reapply the next year should they become qualified again.

In the event that an applicant needs aide in completing their application and certification throughout the process a designated contact may stand in place of the applicant with the completion and submission of the Contact Person Form which can be found on the last page of every applicaiton. If there is a family member with power of attorney then the Contact Person Form need not be filled out if the contact with power of attorney can provide documented proof. If there is no power of attorney and no Contact Person Form completed then information regarding the REAP application and certification will only be discussed with the applicant.

ALL INFORMATION ON THE APPLICATION IS CONFIDENTIAL AND NOT OPEN TO PUBLIC INSPECTION.

REAP Program Application

REAP Program Certification