TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: An Ordinance of the City of North Port, Florida, Amending Chapter 3 of the Code of the City of North Port, Florida, and Creating Section 3-15 Regarding an Additional Homestead Exemption for Persons Sixty-Five (65) and Older with Certain Income Limits; Providing for Conflicts; Providing for Severability; Providing for Codification; and Providing an Effective Date
Recommended Action
Continue Ordinance No. 2020-24 to second reading on July 2, 2020
Recommended Action for Second Reading
Adopt Ordinance No. 2020-24
Background Information
Florida Statutes Section 196.075 authorizes municipalities to provide an additional homestead exemption for persons 65 and older with a certain limited household income. The statute authorizes the additional exemption up to $50,000.
At the February 4, 2020 City Commission Regular Meeting, the Commission voted 4-1 to bring back an ordinance for an ad valorem tax exemption in the amount of $25,000 for persons 65 and older with a limited income.
The City Commission further directed by consensus to provide the financial impact of establishing the exemption at $10,000; $20,000; and $50,000, and to determine whether there would be any financial impact to the Fire Rescue District assessments.
Background Information from First Reading
On June 23, 2020, the City Commission heard first reading of this ordinance and continued the ordinance to second reading on July 2, 2020.
Strategic Plan
Affordability, Growth & Development
Financial Impact
If the taxpayers who currently qualify for the Sarasota County exemption also quality for the proposed exemption, the one-year financial impact will be as follows:
$10,000 exemption will reduce revenue by $11,426
$20,000 exemption will reduce revenue by $22,852
$50,000 exemption will reduce revenue by $57,134
Due to the complexity and volume of economic indicators required to provide a ten-year projection, the Finance Department is hesitant to calculate an estimate. For an extremely rough estimate, Finance recommends a 5% escalation per year.
Finance is not aware of an impact on the Fire Rescue District assessment revenues that would result from adoption of such an exemption under the current assessment methodology. Fire Rescue District assessment methodology modifications could impact this result in future years.
Procurement
n/a
Attachments:
1. Ord 2020-24. First Reading. Senior Homestead Exemption
2. F.S. 196.075
3. Ord 2020-24. Second Reading. Senior Homestead Exemption
Prepared by: Amber L. Slayton, City Attorney
Department Director: Amber L. Slayton, City Attorney