TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Discussion and Possible Action Regarding a City of North Port Ad Valorem Tax Exemption for Persons 65 and Older.
Recommended Action
1. Permission for Mayor McDowell to work with City Attorney and City Manager on creating an ordinance.
2. Decide upon the homestead exemption amount desired.
Background Information
It was brought to my attention the City of North Port is permitted to allow an additional homestead exemption for property owners 65 or over with a limited income. In 2018 the income threshold was $30,174. A sworn statement, of adjusted gross income of a household, is required prior to March 1 to the Sarasota County Property Appraiser’s office.
This is an excerpt provided by the City Attorney.
The exemption is adopted by local ordinance with a supermajority vote (for our Commission, that would be 4 votes). Florida Statutes § 196.075 provides this authority and includes the following requirements for the ordinance:
(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 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.
Currently, the City of North Port’s additional homestead exemption for income qualified seniors is $0. The Town of Longboat Key is $50,000. The City of Sarasota is $25,000 and the City of Venice is $0. The Commission can set this amount from $0 to $50,000.
Strategic Plan
Efficient and effective government, Affordable, growth and development
Financial Impact
The financial impact was provided by the finance department.
There are 295 parcels in North Port that could benefit from an additional $5,000 senior exemption for Sarasota County. Based on this number, the $5,000 exemption, would equate to a loss of $5,713 in ad valorem revenue. If we go up to a $50,000 exemption, this would equate to a loss of $57,134 in ad valorem revenue.
Procurement
N/A
Attachments:
1. North Port Ordinance No. 2010-24
2. Sarasota County Ordinance No. 2019-048
3. Florida Statute No. 196.1995
4. Overview from the Sarasota County Property Appraiser’s office
Prepared by: Peter D. Lear, CPA, CGMA, City Manager for Mayor Debbie McDowell
Department Director: Peter D. Lear, CPA, CGMA, City Manager