Item 8B - Draft Taxation OrdinanceSTAFF REPORT
C ity of Atlantic Beach
Commission Meeting
AGENDA ITEM: DRAFT ORDINANCE NO. XX-XX-XX
AGENOA ITEM #88
.JULY 13,20 15
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA,
AMENDING CHAPTER 20, TAXATION, OF THE CODE OF
ORDINANCES OF THE CITY OF ATLANTIC BEACH , BY AMENDING
SECTION 20-82 ADDITIONAL HOMESTEAD EXEMPTION
AUTHORIZED AND ADDING SECTION 20-82(b) TO AUTHORIZE AN
ADDITIONAL EXEMPTION, AMENDING SECTION 20-83, ANNUAL
ADJUSTMENT TO HOUSEHOLD INCOME; DIRECTING THE CITY
CLERK TO PROVIDE A COPY TO THE DUVAL COUNTY PROPERTY
APPRAISER'S OFFICE; REQUIRING A MAJORITY PLUS ONE VOTE
OF ALL MEMBERS OF THE GOVERNING BODY TO BE EFFECTIVE,
PROVIDING FOR SEVERABILITY, AND PROVIDING AN EFFECTIVE
DATE.
DATE:
SUBMITTED BY:
June 25, 2015
Nelson VanLiere, City Manager @.._
BACKGROUND: On May 28, 20 13, the C it y of Jacksonvil le passed an ordinance to allow for
an additional homestead exemption from taxes paid to the county for those properties and
indi vid uals th at meet cettain c rite ri a as the res ult of a constitutional amendment affect ive July I,
20 13 .
The amendment provides for an additional homestead exemption equal to the assessed value of
the homesteaded property if the property ha s a just va lue less than $250,000 to an owner who has
mai ntained pem1anent residency on the property for not less than 25 years, who has attained the
age of 65 , a nd whose househo ld income does not exceed low income as de tined by gener a l law.
This ordinance s hall be deJivered to the Duval County Property Appraiser no later than
December 1, 2015 to be effecti ve in the 2016 tax year. The o rdin a n ce is the similar to that
passed by the City of Jacks onville.
BUDGET: The budget impact will be realized in the s ub sequent year as a red uction to ad
valorem tax revenues. The do ll ar amount of the impact depends on th e number of qua lified
prope1iy owne rs that make appli catj o n for th e exemption and is expected to have an insignificant
impact on the total tax assessment. At the present time, the estimated impact is a reduction of tax
revenue of$375. This was derived from the cuncnt market val ue of six properties that meet the
criteria. The to tal exempted value for t hese s ix properties is $11 8,739.
RECOMMENDATION: Place the ordinance on the next agenda for first readi ng.
ATTACHMENTS: DRAFT ORDINANCE NO. XX-XX-XX
Florida Statutes Chapter 196-075 for reference
DRAFT ORDINANCE NO. XX-XX-XX
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, AMENDING CHAPTER 20, TAXATION, OF
THE CODE OF ORDINANCES OF THE CITY OF
ATLANTIC BEACH, BY AMENDING SECTION 20-82
ADDITIONAL HOMESTEAD EXEMPTION AUTHORIZED
AND ADDING SECTION 20-82(b) TO AUTHORIZE AN
ADDITIONAL EXEMPTION, AMENDING SECTION 20-83,
ANNUAL ADJUSTMENT TO HOUSEHOLD INCOME;
DIRECTING THE CITY CLERK TO PROVIDE A COPY
TO THE DUVAL COUNTY PROPERTY APPRAISER'S
OFFICE; REQUIRING A MAJORITY PLUS ONE VOTE OF
ALL MEMBERS OF THE GOVERNING BODY TO BE
EFFECTIVE, PROVIDING FOR SEVERABILITY, AND
PROVIDING AN EFFECTIVE DATE.
AGENDA ITEM #8B
JULY 13,2015
WHEREAS, Article VII, Section 6(±), Florida constitution, authorizes the state legislature to
enact a general law allowing municipalities, for the purpose of their respective tax levies, to
grant an additional homestead exemption, and
WHEREAS, said constitutional Amendment provides that the additional homestead exemption
equal to the assessed value of homesteaded property if the property has a just value less than
$250,000 to an owner who has maintained permanent residency on the property for not less than
25 years, who has attained the age of 65, and whose household income does not exceed low
income as defined by general law; and
WHEREAS, the State Legislature enacted Chapter 12-57, Laws of Florida, creating Section
196-075, Florida Statutes, implementing Article VII, Section 6(d), Florida Constitution, effective
July 1, 2013, and
WHEREAS, the City Commission of the City of Atlantic Beach desires to provide for an
additional homestead exemption within the provisions and limitations of Article VII, Section
6(d), Florida Constitution, Chapter 12-57, Laws ofFlorida, and Section 196-075, Florida
statutes, and
WHEREAS, the additional homestead exemption should be in the form of an ordinance and
should be delivered to the Duvall County Property Appraiser no later than December 1, 2015 to
be effective in the 2016 tax year; now, therefore
BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF
THE CITY OF ATLANTIC BEACH, FLORIDA:
SECTION 1. The Code of Ordinances of the City of Atlantic Beach, Florida is hereby amended
to add an additional homestead exemption and change the household income determination and
shall read as follows:
• Sec. 20-82. -Additional homestead exemption~ authorized.
AGENDA ITEM #8B
JULY 13,2015
fru_Co mmencing January I, 200 l , and a nnuall y t hereafter, pursuant to At1ic lc YH,
Sect ion 6(f), F lorid a Const ituti on, and Sect ion 196.075, Florida Statutes, an
additional homestead exemption of tw enty-five thou sa nd dollars ($25 ,000 .00) is
hereby authori zed for any person who has the legal or equitab le title to rea l estate
and mainta in s thereon the penn anent res idence of th e owner, who has attained the
age of sixty-five (65) and who se household income do es not exceed twenty
thousand dollars ($20,000.00), aEijt~sted by the cest ef living index fer the year
mG. Low income as defined by s.l96.075. Florida Statutes.
(b) Commencing January I, 2015 and armua ll y thereafter, pursuant to Article VII,
Section 6(d), Florida Const ituti on and Section 196.075, Florida statutes, an
additional homestead exempti on is authorized equal to the assessed va lue of the
property to any person who has the lega l or equitable title to real estate with a just
va lu e le ss than two hundred and fifty thousand dollars and who has maintained
thereon the permanent residence of the owner for not less than twenty-five years
and who h as atta ined age sixty-five and whose household income does not exceed
the income limitation prescribed in S 196-075, Florida Statutes.
• Sec. 20-83.-Annual adjustment to household income.
_Cemmeaeing January 1, 2001, the household income li111itatien shall be adjus ted anmtaJly,
on January 1, by the percentage e8ange in the a·1erage eost of living indeK in the peried January
1 th:reugk December 31 efthe immediate pFior year compared with the same peried for the year
p1ior to that. The indeK is the average of the monthly eensumer price indOJ( figures fer the stated
12 month perieEi , relative te the U11ited States as a \YhoJe, isst~ed by the United States
DepartmeAt of Laber.
The household in come limitation s hall be adjusted ann uall y, on January I, in accordance
with s.l96-075, Florida Statut es.
SECTION 2. The C ity Clerk is hereby directed to deliver a cert i fled copy of this ordinance to
the Duval County Property Appraiser's Office upon approva l.
SECTION 3. Severabi lity. If any section, sentence, clause or phrase of this ordinance is he ld to
be in va lid or unconstitutional by any cout1 of competent jurisdiction, then sa id hold in g shall in
no way affect the va lidity of the remaining portions of this ord in ance.
AGENDA ITEM #8B
JULY 13,2015
SECTION 4. Effective Date. This ordinance shall take effect immediately upon its final
passage and adoption.
Passed by the City Commission on first reading this __ day of ____ _
2015.
PASSED AND DULY ADOPTED with a quorum present and voting, by the City
Commission this __ day of , 2015.
ATTEST:
DONNA L. BARTLE,
City Clerk
Approved as to form and correctness:
RICHARD KOMANDO,
City Attorney
CAROLYN WOODS,
Mayor, Presiding Officer
ACENOA ITEM #80
,JULY 13,20 15
Below is section 196.075, the additional sen ior exempti on, copied from the State's website
for s tatutes .
Title XIV
TAXATION AND FINANCE
Chapter 196 View Entire Chapter
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" mea ns the ad justed gross income, as defined in s.
62 of the United States Internal Revenu e Code, of all members of a househo l d.
(2) In accordance with s. 6(d), Art. VII of the State Consti tution, the board
of county com mi ssio ners of any county or t he gove rnin g authority of any
municipality may adopt an ordinance to allow either or bo t h of the following
additional homestead exemptions:
(a) Up to $50,000 for any person who has t he legal or equitable title to real
estate and maintains thereon the permanent reside nce of the owner , w ho ha s
attained age 65, and whose household income does not exceed $20 ,000; or
(b) The amo unt of the assessed va lue of t he property for any person who
has the legal or equitable title to real estate with a just va lue less than
$250,000 and has maintained thereon the permanent residence of the owner
for at l east 25 years, who ha s attained age 65, and whose household i ncome
does not exceed the inco me limitation prescribed in paragraph (a), as
calcu lated in subsection (3).
(3) Beginning January 1, 2001, the $20,000 income limitation shall be
adjusted annually, on January 1, by the percentage cha nge 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 t he year prior to that. The index
is the average of the monthly consumer-pri ce-index figures for the stated 12·
month period, re lative to the United States as a who l e, issued by t he United
States Department of Labor.
(4) An ordinance granting an additional hom estead exempt ion as authorized
by this section mu st meet the following requ i rements:
(a) It must be adopted under the procedures for adoption of a
nonemergency ordinance specified in chapter 125 by a board of county
co mmissioners or chapter 166 by a municipal governing authority, except that
the exemption authorized by paragraph (2)(b) must be authori zed by a sup er
majority (a majority plus one ) vote of the members of the governing body of
the county or municipality granting such exemp tion.
(b) It must spec ify that the exemption applies only to taxes l evied by the
unit of government granting the exe mption. Unless otherwise specified by the
county or municipality, this exemption will apply to all tax l ev i es of t he co unty
or municipality granting t he exemption, in cl uding depend ent spec ial districts
and muni cipal service taxi ng units.
(c) It must specify the amount of the exemption , whic h may not exceed the
applicable amount specified in subsection (2). If the coun ty or municipality
specifies a different exemption amount for dependent specia l districts or
muni cipal serv i ce taxing units, the exemption amount must be uniform in all
dependent special districts or municipal service taxing units within the co unty
or municipality.
(d) It must require that a taxpayer c laiming the exemption an nually submit
to the property appraiser, not la ter than March 1, a sworn statement of
household income on a form presc ribed by the Department of Revenue.
(5) The depa rtment 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 f i nd s 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 acc uracy of the
docum ents and grant permiss ion to allow review of the documents if requested
by the property appraiser. Submission of suppo r ting documentation i s not
required for the renewal of an exempti on under this section unless the
property appraiser requests such doc um entation. Once the doc um ents ha ve
been inspected by the property appraiser, they shall be returned to the
taxpayer or otherwise destroyed. The property appraiser is authorized to
generate ra ndom audits of the taxpayers' sworn statements to ensure the
accuracy of the househo l d income rep orted. If so selected for audit, a taxpayer
shall exec ute Internal Revenue Service Form 8821 or 4506, which authorizes
the Internal Reve nu e Service to relea se ta x information to the property
appraiser's office. All reviews condu ct ed 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 req uested is not provided.
AGENDA ITEM #88
JULY 13, 2015
(6) The board of county commissioners or municipal governing authority
mu st deliver a copy of any ordinance adopted under th i s secti on to t he
property appraiser no later t han Decembe r 1 of the yea r prior to the year t he
exemption will take effect. If the ordinance is repea l ed, the board of co unty
co mmissi oners or municipal gove rnin g autho rity shall notify the property
app r ai se r no l ater t han December 1 of the year prior to the year t he exem ption
ex pires .
(7) Those persons entitled to the homestead exempti on ins. 196 .031 may
appl y for and receive an addi tional homestead exempti on as provided in this
secti on. Receipt of the add itional homestead exemption provi ded for in t his
section shall be su bject to the pr ovi sions of ss . 196 .13 1 and 196.161 , i f
applicable.
(8) If title is held j oint ly with right of survivors hip, the person res iding on
the property and otherwise qualifying may receive the enti re amou nt of the
additiona l homestead exemption.
(9) If the property appraiser determines that for any year within the
immed iately previous 10 years a pe rson who was not entitled to the additional
homestead exemption un der this section was granted such an exemption , the
prop erty appraiser shall serve upon the owner a notice of i ntent to record in
the public records of the co unty a noti ce of t ax lien aga in st any property
owned by that person in the co unty, and that property must be identified in
t he notice of tax lie n. Any property that i s owned by the taxpayer and i s
si t uat ed in t hi s state i s subject to t he taxes exempted by the improper
homestead exemption , plus a pena l ty of 50 percent of the un paid taxes for
each year an d interest at a rate of 15 percent per an num . Howeve r , if such an
exem pt ion is imprope rly gra nted as a res ult of a clerical mistake or omission by
the property app r ai se r , th e perso n who improperl y received the exemptio n
may not be assessed a penalty a nd interest. Befo re any such lien may be filed,
th e owne r must be given 30 days wi thin wh i ch to pay the taxes, penalties, and
inter est. Suc h a lien i s subj ec t to the procedu r es and pr ov i sions set forth i n s.
196 .161 (3).
AGENDA ITEM. #80
.JULY 13,201 5