ADDITIONAL HOMESTEAD EXEMPTION FOR LOW

INCOME SENIORS

October 22, 2013

Additional Exemption for Low Income Seniors

• Background

• Recipients

• Administration

• Summary

• Board Direction

Additional Exemption for Low Income Seniors

• Background

• Recipients

• Administration

• Summary

• Board Direction

In the November 2012 general election, voters approved Amendment 11

It allows for an additional exemption when all of the following conditions are met:

• The owner must be age 65 years or older;

• The property must have a just (market) value of less than $250,000;

• The owner must have maintained permanent residence for at least 25 years;

• The owner’s annual household income must be less than $27,030 in 2013

Background

More on Amendment 11:• The exemption must be granted by ordinance

• The ordinance must be adopted and delivered to the Property Appraiser by December 1, to take effect on the following January 1

• The ordinance must be adopted by at least a majority plus 1 vote

• The requirements for the additionalexemption do not affect any of the exemptions already authorized

Background

Background

Original Save our Seniors Exemption:

• In 1998, voters approved the “Save Our Seniors” amendment to the Florida Constitution, allowing an exemption up to $25,000 for low-income senior citizens.

• The $25,000 “Save Our Seniors Homestead Exemption Ordinance” was enacted by the Orange County Board in 2000 beginning for tax year 2001.

Background

Second Exemption to the original Low-Income Seniors exemption:

• In 2006, voters approved an amendment increasing the exemption to $50,000

• The increase to $50,000was enacted by the Orange County Board for tax year 2007

Background

Millage Rate• The current homestead exemption for

Limited Income Seniors applies only to the countywide millage rate, currently 4.4347 mills.

Additional Exemption for Low Income Seniors

• Background

• Recipients

• Administration

• Summary

• Board Direction

Recipients

• Approximately 6,800 Recipients

• Current $50,000 Limited Income Senior exemption saves seniors approximately $1.3 million per year

• Currently as much as $400 million non-exempt taxable value are available from current Limited-income Seniors

• Assuming all current recipients qualify for the additional exemption, the cost to Orange County would be approximately $1.8 million

• Anticipated cost is estimated to be significantly less

Recipients / Fiscal Impact

Additional Exemption for Low Income Seniors

• Background

• Recipients

• Administration

• Summary

• Board Direction

Administration

Timing• A Taxpayer claiming the exemption must submit

to the Property Appraiser, no later than March 1, a sworn statement of household income on a form prescribed by the Department of Revenue

Administration

Auditing• The Property Appraiser is authorized to

generate random audits of the taxpayers’ sworn statements to ensure the accuracy of the reported household income

Administration

Annual Renewal• In1988, The Orange County Property Appraiser

requested and received approval from the Orange County Board of County Commissioners to waive the annual application requirement for exemption renewal.

• If approved, the Property Appraiser is requesting to extend the waiver of the annual application requirement,to include the additionalexemption for low-incomeseniors.

Additional Exemption for Low Income Seniors

• Background

• Recipients

• Administration

• Summary

• Board Direction

Summary

• Third additional limited income senior exemption

• The exemption must be granted by ordinance

• Adopted ordinance to Property Appraiser’s Office by December 1, 2013 for the tax year 2014

Additional Exemption for Low Income Seniors

• Background

• Recipients

• Administration

• Summary

• Board Direction

Board Direction

Board Options:• Delay to a future year

• Proceed with an ordinance and amend our Code to allow for:

– Added Exemption

– Waiver of annual application renewal requirement

ADDITIONAL HOMESTEAD EXEMPTION FOR LOW

INCOME SENIORS

October 22, 2013