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Subcommittee backs bill to restore local option for surviving-spouse property tax exemption
Summary
HB175, sponsored by Delegate Fagan, would restore local-option authority to exempt surviving spouses of service members who died in the line of duty from local real property tax caps created by a 2024 constitutional amendment; subcommittee reported the bill 10–0. Testimony cited 56 surviving spouses in Virginia Beach affected and an estimated local impact of $106,416.
The subcommittee voted unanimously Feb. 9 to report HB175, a bill that would restore to local governing bodies the option to provide a full real property tax exemption to surviving spouses of service members who died in the line of duty.
Delegate Fagan said the 2024 constitutional amendment expanded eligibility but produced “an unintended consequence” because statutory caps tied to average excess home values have left some surviving spouses in high-cost areas receiving tax bills. Phil Kellum, commissioner of revenue for the City of Virginia Beach, told the committee his office counted 56 surviving spouses affected and estimated the local fiscal impact of restoring the exemption in that city at $106,416 spread among those 56 individuals.
Fagan emphasized HB175 would not expand eligibility, mandate exemptions, or impose costs on the Commonwealth; rather, it would restore local discretion to provide relief by ordinance. The patron and the commissioner said the proposal is intended to align statute with the constitutional change voters approved in 2024.
The committee voted to report the bill (10 yays, 0 nays).
