Fort Walton Beach Council agenda — 05-08-2007 workshop agenda — reading text

CITY OF FORT WALTON BEACH, FLORIDA MEMORANDUM TO: Honorable Mayor and Councilmembers THROUGH: Joyce Shanahan, City Manager FROM: Charlotte Dunworth, Budget/Grants Manager SUBJECT: Additional Homestead Exemption for Seniors DATE: May 3, 2007 Backaround: In December 1999, the City enacted the first senior homestead exemption for citizens over age 65 with an income of less than $ 20, 000. At the November, 2006 General Election Florida residents voted to amend the constitution to increase the senior homestead exemption from $ 25, 000 to $ 50, 000. In summary, this new law increases the senior homestead exemption for low income seniors that cities and counties may grant from a maximum of $ 25, 000 to a maximum of 50, 000. For the 2007 tax roll only, a county or municipality that has adopted the exemption for the 2007 tax year may increase the exemption by delivering a copy of the adopted ordinance to the property appraiser by June 1, 2007 for it to become effective for bills dated November 1, 2007. Discussion: The City currently has 276 homes receiving the senior homestead exemption, with property valued totaling $ 6, 636,457, which equals $ 30, 832 in lost tax revenue. By doubling the exemption we could expect a decrease of approximately $ 32, 000, totaling almost $63, 000. As you know, the Legislature has been addressing the property tax issue and has indicated its intent to further discuss the matter during a special session scheduled for June 12- 22. Staff contacted the Department of Revenue to confirm that an additional exemption could take effect on January 1, 2008, by delivery of an amended ordinance to the Property Appraiser by December 1, 2007. Staff contacted the Property Appraiser' s office who confirmed that of the agencies that grant the exemption ( Cinco Bayou, Crestview, Destin, Mary Esther, Niceville, Shalimar, and Valparaiso) none have indicated their intent to adopt the additional senior exemption at this time. Conclusion: Staff brought this matter forward because it is time sensitive and so that Council would be aware that an additional homestead exemption is available to seniors. At this time, staff does not recommend amending the ordinance to increase the senior homestead exemption, until the legislature concludes it's special session on property on June 22, 2007. If Council directs staff amend the ordinance for the 2007 tax year it will require two readings before June 1, 2007. Res~ Charlotte Dunworth Manager B7nts Reviewed and Concur Do Not Concur 0; 5 . ?:>. Date cj Page 2  I Property Tax Administration II Bulletin: PTA - 07- 0Z L'imJt. ,~ PQ ")J 0. if!..... To: v - ilil 2.' t-U' j ' i- Property Appraisers Counties Municipalities From: James McAdams Date: April 26, 2007 Bulletin: PTA-07- 02 FLORIDA DEPARTMENT OF REVENUE PROPERTY TAX INFORMATIONAL BULLETIN Homestead Exemption; Increase; Seniors The 2007 Legislature enacted Chapter 2007- 4, Laws of Florida, effective April 9, 2007, and retroactive to January 1, 2007 ( See HB 333.). This law implements HJR 353, the joint resolution, approved by the voters in the November 2006 general election, which created an amendment to section 6 of Article VII of the State Constitution, relating to the optional additional homestead exemption for persons 65 and older. In summary, this new law increases the additional exemption for low income seniors that cities and counties may grant from a maximum of $ 25, 000 to a maximum of $50, 000. Under current law, counties and municipalities must deliver a copy of the ordinance providing for the additional senior exemption to the property appraiser no later than December 1 prior to the year the ordinance will take effect. For the 2007 tax roll only, a county or municipality that has adopted the exemption for the 2007 tax year may increase the exemption by delivering a copy of the adopted ordinance to the property appraiser by June 1, 2007. Chapter 2007- 4, Laws of Florida, specifically revised the law as follows ( words stricken are deletions; words underlined are additions): 196. 075 Additional homestead exemption for persons 65 and older.- Art. VII of the State Constitution, the board of county commissioners of 2) In accordance with s. 6( f), any county or the governing authority of any municipality may adopt an ordinance to allow an additional homestead exemption of up to $ 50. 000 $ 25, 000 for any person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, who has attained age 65, and whose household income does not exceed $ 20, 000. 4) An ordinance granting additional homestead exemption as authorized by this section must meet the following requirements: c) It must specify the amount of the exemption, which may not exceed $ 50, 000 $ 25, 000. If the county or municipality specifies a different exemption amount for dependent special districts or municipal service taxing units, the exemption amount must be uniform in all dependent special districts or municipal service taxing units within the county or municipality. Section 2. For the 2007 tax roll onlv. a taxinq authority that has adopted an exemption under s. 196. 075, Florida Statutes. for the 2007 tax year may increase the amount of that exemption. subiect to the $ 50, 000 limit. bv deliverinq to the property appraiser bv June 1. 2007. a copy of the adopted reqular or emerqencv ordinance authorizinq the increase. This information is provided by the Department of Revenue to advise interested parties of legislative action taken during the 2007 session. If you have questions with regard to this matter and wish to discuss them, you may contact Jane Marshall at MarshaJa@dor. state. fl.us or 850- 414-6100.  If title is held jointly with right of survivorship, the person residing on the subject property and otherwise qualifying may receive the entire amount of the additional homestead tax exemption. 4. 04. 03 Annual Adlustmen! Beginning January 1, 2001, such person' s $ 20,000 income limitation shalf be adju ed annually, on January 1, by the percentage change in the average cost-of-llving Index the period January 1, through December 31 of the immediate prior year compared with the eriod for the year prior to that. The index is the average of the monthly consumer price inde figures for the stated 12- month pENiod, relative to the United States as a whole, issued by th United States Department of Labor. 4. 04. 05 Rescission 0 xem tion It is the intent of the ci in establishing this exemption that the city be empowered to rescind this additional homestea x exemption at the end of any particular year should it be determined in the sole discretion 0 the city that there is an adverse financial impact of such an exemption, and it no longer serve e best financial interest of the city. 4. 04. 06 Aoolication of ExemQtion The additional homestead tax exem ' on established in this section shall apply only to taxes levied the city. 4. 04. 07 CIQim. Receipt Qf ExemDtion. Duties Those persons entitled to the homestead tax emption in section 196. 031, F. S., as amended, may apply for and may receive an additio I homestead tax exemption as provided in this chapter. A taxpayer claiming the additi al homestead tax exemption provided herein shall annuaUy submit to the property appral r, no later than March 1, a swom statement of household income on a form prescribed by th department of revenue. 4. 04. 08 Proof of Income The filing of the statement of the taxpayer shall be supported by co . s of any federal income tax returns for the prior year, any wage and earnings statement ( W- 2 ms), and any other documents the department of revenue finds necessary, for each me er of the household, to be submitted by June 1. The taxpayer's statement shall attest to the uracy of such copies. The property appraiser may not grant the exemption without the fired documentation. Volume 11- 80  December 28, 1999 Mr. Pete Smith Hand Delivery OkaJoosa County Property Appraiser 151D NE Eglin Parkway Fort Walton Beach,FL 32548 Dear Mr. Smith, Please find enclosed a certified copy of our Ordinance 1399, establishing an additional homestead tax exemption of up to $ 25, 000 for certain persons who have attained the age of sixty-five, and whose household incomes do not exceed $ 20,000. If you have any questions, please do not hesitate to contact me directly. Sincerely, Finance Director RS/ ci. Enclosure cc: Reid Silverboard, City Manager Department of Revenue, Ms. Kathy Henley Helen Spencer, City Clerk Received: L'" l? Kt'(/- o0!/'// By: - 8 7) ec 91 3~l. rFrY7 1(5 cc. < 5  ORDINANCE No. 1399 AN ORDINANCE OF THE CITY OF FORT WALTON BEACH, FLORIDA; ESTABLISHING AN ADDITIONAL HOMESTEAD TAX EXEMPTION OF UP TO 25, 000 FOR CERTAIN PERSONS \ VHO HAVE, ATTAINED THE AGE OF SIXTY- FIVE AND WHOSE HOUSEHOLD ~ 1;NCOMES DO NOT EXCEED $ 20, 000; PROVIDING FOR AUTHORITY; PROViDING FOR DEFINITIONS; ESTABLISHING ADDITIONAL HOMESTEAD. TAX EXEl\IPTIONj PROVIDING EXEl\lPTION LIMITATION; PROVIDING FOR APPLICATIONPROCEDUREj PROVIDING FOR REPEAL; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the citizens of the State of Florida, inctuding the residents of the City of Fort Walton Beach, have voted to amend the Constitution of the State of Florida to allow certain senior citizens an additional homestead tax exemption; and