HomeMy WebLinkAbout2007 11 13 Regular 608 Property Tax Reform Legislation Update
COMMISSION AGENDA
ITEM 608
Consent
Informational
Public Hearin
Re ular
x
November 13,2007
Regular Meeting
MGR. fZ- IDEPT.
Authorization
REQUEST: City Manager requesting the City Commission to hear a presentation from staff
regarding the most recent property tax reform legislation.
PURPOSE: This agenda item is needed to provide the Commission with an update on recent property
tax reform legislation.
CONSIDERATIONS:
During its October 2007 special session, the Legislature passed a new proposed constitutional
amendment that will be on the January 29,2008 ballot. This new constitutional amendment is in
response to a September 2007 Circuit Court ruling that removed the Legislature's previously proposed
constitutional amendment from the January 29 ballot due to in part to misleading and confusing
language.
Staff will present summary of the proposed amendment with its corresponding fiscal impacts on the City
and suggested strategies for addressing these impacts.
FUNDING:
It is estimated that the proposed property tax legislation, if approved by the voters, will result in
approximately a $1 M reduction in City property tax revenues for FY 2009.
RECOMMENDATION:
The City Manager recommends the Commission to hear a presentation from staff regarding recent
property tax reform legislation.
A TT ACHMENTS:
1. Florida League of Cities memo, re: Property Tax Reform Update.
2. Seminole County Property Appraiser calculations of Estimated Impact resulting from
proposed Property Tax Reform Legislation.
a. Doubling of Homestead Exemption.
b. Portability.
COMMISSION ACTION:
ATTACHMENT 1
IMMEDIATE ACTION REQUESTED!
TO:
Key Officials
FLC Board of Directors
Local & Regional Leagues
FROM:
Rebecca O'Hara, Legislative Director
DATE:
October 30, 2007
RE:
Property Tax Reform Update
The Legislature passed a proposed constitutional amendment (SJR 2D)
that will be on the ballot for January 29, 2008. In addition, the Legislature
passed an accompanying implementing bill (SB 4D). Importantly, the
proposed constitutional amendment does not have language
requiring the legislature to restrict city authority to increase property
taxes. In addition, the statutory implementation bill does not contain
the onerous restrictions on a municipality's ability to recapture lost
revenues in 2008-09 (the "override" provisions) that were seen in
initial proposals. Please thank the following legislators for their work to
keep this language out of the House proposal: Rep. Dean Cannon, Rep.
Dan Gelber, Rep. Jack Seiler, Rep. Dick Kravitz, Sen. Steve Geller, Sen.
Ted Deutch, Sen. Dan Webster, and Sen. Paula Dockery.
What's in the Proposed Constitutional Amendment
Portability of Save Our Homes
Homesteaded property owners can take up to $500,000 of their Save Our
Homes benefit (up to $500,000) to a new homestead within two years of
giving up their previous homestead. If the just value of the new homestead
is greater than the previous home's just value, the entire differential can be
transferred. If the just value of the new homestead is lower, the amount
that can be transferred is proportional to the value of the new homestead.
Homestead Exemption
Additional $25,000 homestead exemption for assessed values between
$50,000 - $75,000. Not applicable to school taxes.
Tangible Personal Property Exemption
Exempts $25,000 of assessed value of TPP from taxation.
Non-Homestead Assessment Caps
Non-homesteaded property will have a 10% assessment cap. The cap will
sunset after 10 years, when it will be presented to the voters for re-
approval. Not applicable to school taxes.
The proposal is projected to cut local government revenues by
approximately $12.4 billion statewide over the next five years, including a
$2.8 billion cut from school districts. County-by-county estimates are
available; however, estimates are not available on a city-by-city basis.
The statutory implementing bill contains language that requires an annual
appropriation (amount unspecified) to fiscally constrained counties to make
up for revenue reductions from the adoption of the constitutional
amendment by the voters. The bill does not include within this provision
cities within fiscally constrained counties, newly incorporated cities, or
cities in a state of financial emergency. It is understood this is
"placeholder" language that will be revisited in the regular 2008 session.
What's Not in the Proposal
. No Local Government Tax Caps or Grants of Authority to
Legislature to Restrict Local Government Ad Valorem Taxing
Power
. No exemption for low-Income seniors
. No exemptions for first-time homesteaders
. No provisions regarding assessments for affordable or
w-qrkforce housing
. No provisions regarding assessments for working waterfronts
. No provisions regarding property appraisers
ATTACHMENT 2-a
DPERTY
PPRAlliER
SEMINOLE COUNTY, FLORIDA
ESTIMATED IMPACT OF DOUBLE HOMESTEAD EXEMPTION FOR SEMINOLE COUNTY, FL
(Increasing Homestead Exemption/rom $25,000 to $50,000)
Reduction in
Current Taxable if
2007 2007 Taxable Value 1st $25,000 & Estimated
Taxing Authority Millage Rate # H\: Parcels 0/ Hx Parcels $50K-75K Exempted Revenue Impact
Seminole County:
Seminole County BCC 4.5029 100,867 31,615,547,653 2,317,146,748 $10,433,880
Seminole County Fire District (Unincorp & Altamonte) 2.3299 60,765 19,443,824,381 1,423,300,823 3,316,149
Seminole County Road District 0.1068 53,086 1,276,010,014 1,251,829,358 133,695
Seminole County Total (BCC, Fire, & Road) $13,883,724
Seminole County Public Schools 7.4130 100,867 31,615,547,653 N/A N/A
St Johns River Water Mgmt District 0.4158 100,867 31,615,547,653 2,317,146,748 963,470
City of AItamonte Springs 2.4343 7,861 3,445,154,173 175,367,581 426,897
City of Casselberry 4.5410 5,664 1,498,786,230 118,897,963 539,916
City of Lake Mary 3.5797 3,820 1,952,120,082 91,005,344 325,772
City of Long wood 4.9900 3,601 1,100,893,658 84,727,084 422,788
City of Oviedo 4.6545 8,264 2,324,615,391 201,996,918 940,195
City of Sanford 6.3250 8,873 3,071,175,251 168,484,605 1,065,665
City of Winter Springs 3.2496 9,698 2,161,321,321 224,837,895 730,633
TOTAL ESTIMA TED IMPACT TO SEMINOLE COUNTY AD VALOREM REVENUE
$19,299,060
ATTACHMENT 2-b
ESTIMATED IMPACT OF SA VE OUR HOMES PORTABILITY
FOR SEMINOLE COUNTY
Taxing Authority
2007
Millage Rate
Estimated Revenue Impact
Rangefor 1st Year
Seminole County:
Seminole County BCC
Seminole County Fire District (Unincorp & Altamonte)
Seminole County Road District
Seminole County Total (BCC, Fire, & Road)
4.5029
2.3299
0.1068
$3,559,092
I, III ,595
o
$4,670,687
$4, I 06,645
1,282,610
o
$5,389,255
5,859,235
328,648
312,808
248,393
76,248
95,808
240,638
718,520
178,078
6,760,656
379,210
360,763
286,083
79,827
113,772
277,874
829,208
205,375
Seminole County Public Schools
St Johns River Water Mgmt District
City of Altamonte Springs
City of Casselberry
City of Lake Mary
City of Longwood
City of Oviedo
City of Sanford
City of Winter Springs
7.4130
0.4158
2.4343
4.5410
3.5797
4.9900
4.6545
6.3250
3.2496
TOT4L ESTIMATED IMPACT TO SEMINOLE COUNTY AD VALOREM REVENUE
$12,729,063
$14,682,022