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HomeMy WebLinkAboutItem #09 Second Reading of Ordinance on Limited Income Seniors Additional Homestead ExemptionUcO(->C floricla AGENDA ITEM COVER SHEET Meeting Date: May 06, 2014 Item # ` mil Contact Name: Contact Number Robert Frank Reviewed By Department Director: City Manager: Robert Fra 1502 Subject: Limited Income Seniors Additional Homestead Exemption — 2 n Leading 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 z') Public Hearing Ordinance First Reading For Cleric's Dept Use 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 N/A Reviewed by Finance Dept. N/A Reviewed by Q 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 $25,000 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 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 annually by the percentage change in the average .... ...._ . ... ....._ cost-of-living- as provided in Section 1.96.()75(1.)_ Florida.._Statutes,_as niay be amended fro time to time shall be entitled, subject to the provisions of this article, to an additional ..... - - : .................... homestead exemption of $25,040-� 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; provided that beginning with the year 2015 ... _ tax roll th e .._..... additional homestead exemption amount _shall be mc,reased fiom $25,000 t"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 I1 SHUFFIELD LOWMAN & WILSON P.A. am 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. 50 Nsenate Archive: Statutes & Constitution > View Statutes Page 1 of 2 Home Select Year: 2013 __......., Go Session F - -- - Committee Publications Historical Information The 201 Florida �itelttlteS Statutes Y Title XIV Chapter 196 View Entire Chapter TAXATION AND FINANCE EXEMPTION Flsenate.gov 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 S ss or . 2010 � - as a housing unit, but the term does not include persons boarding in or renting a portion of the J 1 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. Session: z oio v (2) In accordance with s. 6(d), Art. VII of the State Constitution, the board of county Chamber: commissioners of any county or the governing authority of any municipality may adopt an ordinance Senate v — — to allow either or both of the !following additional homestead exemptions: Search re m: (a) Up to $50,000 for any person who has the legal or equitable title to real estate and search 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 Year: zoi3 v equitable title to real estate with a just value less than $250,000 and has maintained thereon the Search Term permanent residence of the owner for at least 25 years, who has attained age 65, and whose 196. Search household income does not exceed the income limitation prescribed in paragraph (a), as calculated lr_ J 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 at[ 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 httn / /nrchive.flcenate unv /ctatntac /index A"" A 1711 A Hier it u/, r.0 iy " Print This Page risenate Arnive: Statutes & Constitution > View Statutes Page 2 of 2 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" following the word "following" was deleted by the editors. Site Map Session: Bills • Calendars Bound Journals Citator • Search . Appropriation s • Redistricting • BUt Inforration Report Co_ Pu blications Historical Information Statutes: Int!oduction • View Statutes Search Statutes Ftsena D!sclairner: The inforrnafion on this systern is unverified. The journals or printed bills of the respective charnbers should be consutted for officiat purposes. Copyright 0 2000 -2014 State of Florida. Privacy Statenjent Contact Us Get Acrob Reader httnJ/archive.fleenate anv /etatnti-.q /inrleY Q, A-- A /7/101 A Cold f� �a_eM , 0] $ r�Gj un,Ie f�0 "s�� rnr���o ®1� Date P uNshed and Mefflu Names ua I Central Florida Business ( Orlando Sentinel Monday, April 21, 2014 CITY OF OCOEE - PUBLIC HEARING A Public Hearing before the Ocoee city Commission will be held Tuesday, Moy 6, 2014, at 7:15 P.M. Or as soon thereafter as may be heard, In the Commission Chambers of City Hall at 150 North Lakeshore Drive, Ocoee, Florida, to consider the following: If a person decides to appeal any decision mode by the above City Commission with respect to any matter considered at such hearing, they will need a record of the proceedings, and for such purpose they may need to ensure that a verbatim record of the proceedings Is made, which record In upon the appeal is to he based. ev idence All interested parties are Invited to attend and be heard with respect to the above. In accordance with the Americans with Disabilities Act, persons ne,dln, a s,ecl,l accommodation or on Interpreter to participate In this proceeding should contact the Clty Clerk's office at 407- 905 -3105 at least two days prlor to the date of hearing. Beth Eikenberry City Clerk ORG2319804 4/21/1014 Orlando Sentinel Published Daily ORANGE County, Florida STATE OF FLORIDA ORANGE County Before the undersigned authorit)Lpersona,,ly appeared °��C Q-V ` E iS:r C��cr�C( , who on oath says that he/ she is an Advertising Representative of the ORLANDO SENTINEL, a DAILY newspaper published in ORANGE County, Florida; that the attached copy of advertisement, being a Legal Notice in: The matter of 11150- Public Hearing Notice May 6, 2014 ORANGE County was published in said newspaper in the issues of; Apr 21, 2014 Order # 2319804 Affiant further says that the said ORLANDO SENTINEL is a newspaper published in said ORANGE County, Florida, and that the said newspaper has heretofore been continuously published in said ORANGE County, Florida, each day and has been entered as periodicals matter at the post office in ORANGE County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he or she has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. T - g nhture o ; Aftant S rn to subscrib Signature of Notary Pi before me an this: day of4j,1r, 20 Name of Notary, Typed, Printed, or Stamped Personally Known (Y or Produced Identification ( ) CITY OF OCOEE - PUBLIC HEARING A Public Hearing before the Ocoee City Commission will be held Tuesday, May 6 4014, at 7:15 p.m. or as soon thereafter as may be heard, in the Commission Chambers of City Hall at 150 North Lakeshore Drive, Ocoee, Florida, to consider the following: AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA AMENDING ARTICLE 111 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 rLUKIUA blATUES; PROVIDING FOR SEVERABILITY; PROVDNG FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. If a person decides to appeal any decision made by the above City Commission with respect to any matter considered at such hearing, they will need a record of the proceedings, and for such purpose they may need to ensure that a verbatim record of the Proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. All Interested parties are invited to attend and be heard with respect to the above. In accordance with the Americans with Disabilities Act, persons needing a special accommodation or an interpreter to Participate in this proceeding should contact the City Clerk's office at 407- 905 -3105 at least two days prior to the date of hearing. Beth Eikenberry City Clerk ORG2319804 4/21/2014 2319804