HomeMy WebLinkAboutItem #06 First Reading of Ordinance on Limited Income Seniors Additional Homestead ExemptionOcoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: April 15, 2014
Item #
Reviewed By:
Contact Name: Robert Frank Department Director
Contact Number: 1502 City Manager:
Subject: Limited Income Seniors Additional Homestead Exemption
Frank
Background Summary:
Florida Statute 196.075 allows for additional homestead exemptions for persons 65 and older. In accordance
with this statue, municipalities can adopt an ordinance allowing for additional homestead exemptions up to
$50,000 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 $27,994
(2014). The City currently has set the additional homestead exemption threshold at $25,000.
Issue:
Whether to implement an additional $25,000 limited income senior's homestead exemption.
Recommendations
Staff recommends the commission either a.) authorize implementation of a $25,000 increase to the limited
income seniors homestead exemption; or b.) authorize a different increment amount up to $25,000 for the
limited income seniors homestead exemption; or c.) deny implementation of the additional exemption.
Attachments
Ordinance
Florida Statue 196.075
Financial Impact:
The Property Appraisers office has estimated that the financial impact for implementing an additional $25,000
exemption amount for limited income seniors is a $30,000 loss in tax revenues to the City.
Type of Item: (please mark with an `x')
Public Hearing For Clerk's Dept Use
Ordinance First Reading Consent Agenda
Ordinance Second Reading
Resolution
Commission Approval
Discussion & Direction
Public Hearing
Regular Agenda
Original Document /Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ()
N/A
N/A
N/A
2
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA
AMENDING ARTICLE III OF CHAPTER 160 OF THE CODE OF
ORDINANCES OF THE CITY OF OCOEE RELATING TO THE
ADDITIONAL HOMESTEAD EXEMPTION FOR QUALIFIED
RESIDENTS OVER 65 YEARS OF AGE IN ORDER TO
INCREASE THE ADDITIONAL HOMESTEAD EXEMPTION
FROM 525,000 TO $50,000 PURSUANT TO SECTION 196.075,
FLORIDA STATUES; PROVIDING FOR SEVERABILITY;
PROVIDING FOR CODIFICATION; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, Florida Legislature adopted Chapter 2007 -4, Laws of Florida, effective
April 9, 2007, which amended to Chapter 166; Section 196.075, Florida Statutes, in order to
increase the additional exemption for qualified residents over 65 years of age that cities and
counties may grant from a maximum of $25,000 to a maximum of $50,000; and
WHEREAS, pursuant to Section 196.075, Florida Statutes, the City of Ocoee has
previously adopted Ordinance No. 2001 -30 which has been codified as Article III of Chapter 160
of the Code of Ordinances of the City of Ocoee and which allows an additional homestead
exemption in the amount of $25,000 for qualified residents over 65 years of age; and
WHEREAS, pursuant to Section 196.075(2)(a), Florida Statutes, the Ocoee City
Commission is authorized to adopt an ordinance increasing the additional exemption for
qualified residents over 65 years of age from a maximum of $25,000 to a maximum of $50,000.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE
CITY OF OCOEE, FLORIDA, AS FOLLOWS:
ORLA_307586.2
SECTION 1. Authority The City Commission of the City of Ocoee has the
authority to adopt this Ordinance pursuant to Article VIII of the Constitution of the State of
Florida, Chapter 166, Florida Statutes, and Section 196.075(2)(a), Florida Statutes, as amended
by Chapter 2007 -4, Laws of Florida.
SECTION 2. Section 160 -7 of Article III of Chapter 160 of the Code of
Ordinances of the City of Ocoee, Florida, is hereby amended to read as follows:
§ 160 -7. Authority and purpose
This article is adopted pursuant to the specific authority of Section 6(f) of Article VII of
the Florida Constitution, and Section 196.075(2)(a), Florida Statutes, and the City's home rule
powers granted by Chapter 166, Florida Statutes. The purpose of this article is to provide an
additional ad valorem tax exemption in the amount of &25,000 000 to reduce the burden of
taxation for senior residents of the City with limited financial income.
SECTION 3. Section 160 -9 of Article III of Chapter 160 of the Code of
Ordinances of the City of Ocoee, Florida, is hereby amended to read as follows:
§ 160 -9. Entitlement to additional homestead exemption
Any person 65 years of age or older and who has legal or equitable title to real estate
located within the corporate limits of the City and who maintains thereon his or her permanent
residence, and which residence qualifies for and receives a homestead exemption pursuant to
Section 6(a) of Article VII of the Florida Constitution and whose household income does not
exceed $20,000 which amount shall be adjusted annually by the percentage change in the average
cost -of- living index as provided in Section 196.075(3), Florida Statutes, as may be amended
from time to time shall be entitled, subject to the provisions of this article, to an additional
homestead exemption of X090- 50 000, as provided in this article.
The additional homestead exemption shall be applicable to all ad valorem tax millage
rates levied by the City and, if applicable, shall be subject to the provisions of Sections 196.131
and 196.161, Florida Statutes. Further, the additional exemption granted by this article shall
apply only to taxes levied by the City.
If title to the property is held jointly with right of survivorship, then the person residing
on the property and otherwise qualifying for the additional homestead exemption may receive the
entire amount of the additional homestead exemption provided herein.
-2-
The additional homestead exemption provided herein shall be available to qualified
residents over 65 years of age beginning with the year 2015 tax roll upon submission of the
appropriate forms to the Property Appraiser and compliance with the provisions of this article
and Section 196.075, Florida Statutes; rU ovided that beginning with the year 2015 tax roll the
additional homestead exemption amount shall be increased from $25,000 to-$50 000
SECTION 4. Nothing contained in this Ordinance shall be construed as
amending Section 160 -10 of the Ocoee City Code which provides that the $20,000 income
limitation set forth in Section 160 -9(a) of the Ocoee City Code is annually adjusted as of January
1 of each year based on the consumer price- index. As of January 1, 2014, the income limitation
is $27,994. The household income cannot exceed $27,994 in order to be eligible for the
additional homestead exemption set forth in Article III of Chapter 160 of the Ocoee City Code.
SECTION 5. Direction to City Clerk The City Clerk is hereby authorized and
directed to deliver a certified copy of this Ordinance to the Orange County Property Appraiser by
June 1, 2014.
SECTION 6. Severability If any section, subsection, sentence, clause, phrase
or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of
competent jurisdiction, such portion shall be deemed a separate, distinct and independent
provision and such holding shall not affect the validity of the remaining portion hereto.
SECTION 7. Codification It is the intention of the City Commission of the
City that the provisions of this Ordinance shall become and be made a part of the Code of
Ordinances of the City; and that sections of this Ordinance may be renumbered or relettered and
the word "ordinance" may be changed to "chapter," "section," "article," or such other appropriate
word or phrase in order to accomplish such intentions; and regardless of whether such inclusion
in the Code is accomplished, sections of this Ordinance may be renumbered or relettered and the
-3-
correction of typographical errors which do not affect the intent may be authorized by the City
Manager, without need of public hearing, by filing a corrected or recodified copy of same with
the City Clerk.
SECTION 8. Effective Date This Ordinance shall become effective
immediately upon passage and adoption.
PASSED AND ADOPTED this 2nd day of May, 2014.
ATTEST:
Beth Eikenberry, City Clerk
(SEAL)
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA;
APPROVED AS TO FORM AND
LEGALITY
this day of , 20
SHUFFIELD LOWMAN & WILSON P.A.
City Attorney
APPROVED:
CITY OF OCOEE, FLORIDA
S. Scott Vandergrift, Mayor
READ FIRST TIME ,2014
READ SECOND TIME AND ADOPTED
, 2014
UNDER AGENDA ITEM NO.
M
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Title XIV Chapter 196 View Entire Chapter
TAXATION AND FINANCE EXEMPTION
196.075 Additional homestead exemption for persons 65 and older.—
(1) As used in this section, the term:
(a) "Household" means a person or group of persons living together in a room or group of rooms
as a housing unit, but the term does not include persons boarding in or renting a portion of the
dwelling.
(b) "Household income" means the adjusted gross income, as defined in s. 62 of the United
States Internal Revenue Code, of all members of a household.
(2) In accordance with s. 6(d), Art. VII of the State Constitution, the board of county
commissioners of any county or the governing authority of any municipality may adopt an ordinance
to allow either or both of the !following additional homestead exemptions:
(a) Up to $50,000 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; or
(b) The amount of the assessed value of the property for any person who has the legal or
equitable title to real estate with a just value less than $250,000 and has maintained thereon the
permanent residence of the owner for at least 25 years, who has attained age 65, and whose
household income does not exceed the income limitation prescribed in paragraph (a), as calculated
in subsection (3).
(3) Beginning January 1, 2001, the $20,000 income limitation shall be adjusted annually, on
January 1, by the percentage change in the average cost -of- living index in the period January 1
through December 31 of the immediate prior year compared with the same period for the year
prior to that. The index is the average of the monthly consumer - price -index figures for the stated
12 -month period, relative to the United States as a whole, issued by the United States Department
of Labor.
(4) An ordinance granting an additional homestead exemption as authorized by this section
must meet the following requirements:
(a) It must be adopted under the procedures for adoption of a nonemergency ordinance
specified in chapter 125 by a board of county commissioners or chapter 166 by a municipal
governing authority, except that the exemption authorized by paragraph (2)(b) must be authorized
by a super majority (a majority plus one) vote of the members of the governing body of the county
or municipality granting such exemption.
(b) It must specify that the exemption applies only to taxes levied by the unit of government
granting the exemption. Unless otherwise specified by the county or municipality, this exemption
will apply to all tax levies of the county or municipality granting the exemption, including
dependent special districts and municipal service taxing units.
(c) It must specify the amount of the exemption, which may not exceed the applicable amount
specified in subsection (2). If the county or municipality specifies a different exemption amount for
dependent special districts or municipal service taxing units, the exemption amount must be
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uniform in all dependent special districts or municipal service taxing units within the county or
municipality.
(d) It must require that a taxpayer claiming the exemption annually submit to the property
appraiser, not later than March 1, a sworn statement of household income on a form prescribed by
the Department of Revenue.
(5) The department must require by rule that the filing of the statement be supported by
copies of any federal income tax returns for the prior year, any wage and earnings statements (W -2
forms), any request for an extension of time to file returns, and any other documents it finds
necessary, for each member of the household, to be submitted for inspection by the property
appraiser. The taxpayer's sworn statement shall attest to the accuracy of the documents and grant
permission to allow review of the documents if requested by the property appraiser. Submission of
supporting documentation is not required for the renewal of an exemption under this section unless
the property appraiser requests such documentation. Once the documents have been inspected by
the property appraiser, they shall be returned to the taxpayer or otherwise destroyed. The
property appraiser is authorized to generate random audits of the taxpayers' sworn statements to
ensure the accuracy of the household income reported. If so selected for audit, a taxpayer shall
execute Internal Revenue Service Form 8821 or 4506, which authorizes the Internal Revenue
Service to release tax information to the property appraiser's office. All reviews conducted in
accordance with this section shall be completed on or before June 1. The property appraiser may
not grant or renew the exemption if the required documentation requested is not provided.
(6) The board of county commissioners or municipal governing authority must deliver a copy of
any ordinance adopted under this section to the property appraiser no later than December 1 of
the year prior to the year the exemption will take effect. If the ordinance is repealed, the board of
county commissioners or municipal governing authority shall notify the property appraiser no later
than December 1 of the year prior to the year the exemption expires.
(7) Those persons entitled to the homestead exemption in s. 196.031 may apply for and receive
an additional homestead exemption as provided in this section. Receipt of the additional
homestead exemption provided for in this section shall be subject to the provisions of ss. 196.131
and 196.161 if applicable.
(8) If title is held jointly with right of survivorship, the person residing on the property and
otherwise qualifying may receive the entire amount of the additional homestead exemption.
(9) If the property appraiser determines that for any year within the immediately previous 10
years a person who was not entitled to the additional homestead exemption under this section was
granted such an exemption, the property appraiser shall serve upon the owner a notice of intent to
record in the public records of the county a notice of tax lien against any property owned by that
person in the county, and that property must be identified in the notice of tax lien. Any property
that is owned by the taxpayer and is situated in this state is subject to the taxes exempted by the
improper homestead exemption, plus a penalty of 50 percent of the unpaid taxes for each year and
interest at a rate of 15 percent per annum. However, if such an exemption is improperly granted as
a result of a clerical mistake or omission by the property appraiser, the person who improperly
received the exemption may not be assessed a penalty and interest. Before any such lien may be
filed, the owner must be given 30 days within which to pay the taxes, penalties, and interest. Such
a lien is subject to the procedures and provisions set forth in s. 196.161
History. —s. 1, ch. 99 -341; s. 1, ch. 2002 -52; s. 1, ch. 2007 -4; s. 26, ch. 2010 -5; s. 1, ch. 2012 -57; s. 9, ch. 2013 -72.
'Note. —The word "an" foltowing the word "following" was deleted by the editors.
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