Manassas Boosts Property Tax Break

Seniors, Disabled Residents to Pay Less

The Manassas City Council amended the city's tax relief program Monday to provide more aid to seniors and disabled residents.

The amendment, approved unanimously, will bring the city's tax relief program more in line with Prince William County's. It will take effect immediately after its second reading, scheduled for Jan. 26.

"We've made great strides in improving our tax relief program over the years," Manassas Commissioner of Revenue John P. Grzejka said. "This is just another step in making sure our elderly and disabled can remain in their homes in Manassas."

The personal property and real estate tax relief programs are open to residents on a fixed income who were 65 or older as of Jan. 1 or are permanently or totally disabled.

Under the new program, households won't have to pay taxes if their gross income is less than $49,200 and their net worth -- total assets minus a house plus one acre of land -- is less than $340,000, Grzejka said, adding that to receive 100 percent relief under the old program, gross income had to be less than $40,000 and net worth less than $240,000.

According to city documents, households with a gross income of less than $56,580 can receive a 25 percent break on taxes under the new program, while households with a gross income of less than $63,960 and less than $71,340 can receive a 15 percent and 10 percent tax break, respectively. The asset level limit is the same for all tax brackets.

The income levels are based on a family of two and are in line with the U.S. Department of Housing and Urban Development's housing assistance program, Grzejka said.

"I think this is a splendid action," council member Jonathan L. Way (R) said. "I'm delighted to be a part of this change."

The new income level at which residents will owe no taxes will match Prince William's, Grzejka said, and the eligibility requirements are the same.

But Manassas is planning smaller tax breaks for higher-income households than the county offers.

County residents eligible for the program receive a 75, 50 or 25 percent tax break when their gross income is less than $56,580, $63,960 or $71,340, respectively, according to city documents.

"I'm very cautious in setting the exemption levels until I know how many people will qualify under the new guidelines," Grzejka said. "Prince William also has more property and citizens to spread the exemptions around to."

Grzejka said about 220 residents currently receive assistance from the city's tax relief program. Although the city does not have an estimate of how many will apply under the new guidelines, the council set aside an additional $125,000 for the program when it adopted its fiscal 2009 budget, bringing the program's total cost to $625,000.

Grzejka said residents can visit the city's Web site, http://www.manassascity.org, for more information or wait until March, when an explanation of the guidelines will be mailed out with property assessment notices. Grzejka said he expects residential assessments to drop almost 30 percent this year.

"We've been trying to get this accomplished for some time now," Manassas Mayor Harry J. "Hal" Parrish II (R) said of the new guidelines. "It is a challenge with this budget for us to go a little farther with the program, but I think it will be very beneficial."