Item 7B Ordinance 70-15-18STAFF REPORT
City of Atlantic Beach
Commission Meeting
AGENDA ITEM: ORDINANCE NO. 70-15-18
AGENOA ITEM# 78
JULY 27,2015
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 ClTY
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 SEVERABILI TY, AND PROVIDING AN EFFECTIVE
DATE.
DATE: July 15, 2015
SUBMITTED BY: Nelson VanLiere, City Manager ~
BACKGROUND; On May 28, 2013, the City of Jac kso nvill e pas sed an ordinan ce to allow tor
an additiona l homestead exempti o n from taxes paid to th e county for tho se pr opert ies and
ind ividuals th at meet certain criteria as the re sult of a constitutional amendment effect ive July I,
2013.
The amendment provides for an additional homestead exemption equal to the assessed va lue of
the homestead ed property if the property has a just va lu e Jess than $250,000 to an owner who has
mainta ined permanent residency on the property for not less tha n 25 years, who has attained th e
age of 65 , and whose househo ld in co me does not exceed low inc ome as defin ed by genera l law.
Thi s o rdinan ce sha ll be delivered to the Duv a l County Property Appraiser no later than
December l , 2015 to be effecti vc in the 20 16 ta x yea r. The ordinan ce is simi la r to that passed by
the C ity of J ackso nvill e.
BUDGET: The budget impact will be rea lized in th e subsequent yea r as a reduction to ad
va lorem tax reven ues. The do ll ar amount of the impact depends on the number of qua lifi ed
property owners that make appli cation for th e exemption and is expected to have an in sign ifi cant
impact on the tota l ta x assessment. At the present time , the estimated impact is a reduction of tax
reven ue of $375. Thi s was derived from the current market value of six properties that meet the
criteria. The total exempted va lue for these six properties is $11 8,739.
RECOMMENDATION: Approve Ord inance NO. 70-I 5-18
ATTACHMENTS: ORDINANCE NO. 70-15-18
F lorida Statutes C hapter 196.075 for reference
ORDINANCE NO. 70-15-18
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# 7B
JULY 27,2015
WHEREAS, A11icle VII, §6(f), 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 prope11y 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 F.S.
§196.075, implementing A11icle VII,§ 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 Aliicle VII, §6( d),
Florida Constitution, Chapter 12-57, Laws ofFlorida, and F.S. §196.075, and
WHEREAS, the additional homestead exemption should be in the fmm of an ordinance and
should be delivered to the Duval County Prope11y Appraiser no later than December 1, 2015 to
be effective in the 2016 tax year, and
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 ofthe 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:
Ordinance No. 70-15-18 Page 1 of3
• Se c. 20-82. -A dditiona l homestead ex emption~ authorized.
ACENDA I TEM # 78
.JULY 27,201 5
fill_ Com menc ing Janu ary l , 200 1, an d an nu all y th ereafter, purs uant to Arti c le V rT ,
§6(f), F lorid a Co nstit uti on, and F.S. §196.075, an additi ona l ho mestea d
exempti on of twe nt y-five th ousa nd do ll ars ($25,00 0.00) is hereby auth ori ze d for
a ny perso n who has th e lega l or eq uitabl e titl e to rea l es tate and main ta in s th ereon
th e pe rm anent res ide nce ofthe owner, wh o has att ain ed th e age of s ixty-fi ve (65)
a nd whose house hold in co me does not exceed twe nt y th o usand doll ars
(~0,00M)Q1;-aajustedby the eost of living indeJ< for the year 2000 . Low income
as de tined by F.S . § 1 96.075.
(b) Commencing January l, 2015 and annually thereafier, pursuant to Article VII.
§6Cd), Florida Co nstitution and F.S . §196.075, an additiona l homestead
exemption is authorized equa l to the assessed value of the property to any person
who has the legal or equitable title to rea l es tate with a just va lu e Jess th an two
hundred and fifty thousand dollar s and who has maintained thereon the permanent
residence of the owner for not less than twenty-five yea rs and who has attained
age sixtv-Jivc and whose househo ld income does not exceed the income limitation
prescribed in F.S. § 196 .075.
• Sec. 2 0-8 3 .-Annual adjustment to household income.
_Co mmencing JB:fluary 1, 200 I, the household in:e01ne limitation shall be adjusted aHnually,
on January 1, by the percentage change in the average cost of living inde1c in the period January
l through Deeeffiber 31 of the in~mediate prior year compared with the same period fer the year
pFt&r to that. Tiole in:dex is the average of the monthly eons\:! mer priee inden figures for 1he stated
12 month period, relative to the United States as a who le, issued by the United States
Department of Labor.
The household income lim itation shal l be adjusted annua ll y, on January I , in accordance
wit h F.S. §196.075.
S ECTION 2. The City C le rk is here by directed to deli ver a certifi ed copy of thi s ordin ance to
th e Du va l Co unt y Pro perty Appr aiser's Office up o n approva l.
SECTION 3. Severabil it y. If a ny sec ti on, se ntence, c la use or phrase of thi s ordi na nce is held to
be in va lid or unco ns ti tut iona l by any co urt of co mp e tent jurisdic ti o n, then sa id ho ldin g sha ll in
no way a ffect the va li dity of th e rema in in g po rt io ns of thi s ordin ance.
SECTION 4. E ffect ive Date. T hi s o rdina nce sha ll take effect im medi ate ly upo n i ts fi nal
passage and adopt ion .
Ordi nance No. 70-15-18 Page 2 of3
AGENDA ITEM# 7B
JULY 27,2015
Passed by the City Commission on first reading this __ day of ____ _
2015.
PASS ED 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 conectness:
RICHARD KOMANDO,
City Attorney
Ordinance No. 70-15-18
CAROLYN WOODS,
Mayor, Presiding Officer
Page 3 of3
AGENDA IT EM# 7B
J ULY 27,201 5
Below Is section 196 .075, t h e additional senior exemption, copied from the State's website
for statutes.
Title XIV
TAXATION AND FINANCE
Chapter 196 Vie w En tire Chapter
EXEMPTION
196.075 Additional homes t ead exemption for persons 65 and older.-
(1) As used in this section, the term:
{a) "Household" means a perso n 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 r enting a portion of the dwelling.
(b) "Household income" means the adjusted gross income, as defi ned in s.
62 of th e United States Internal Revenue Co de, of a ll members of a hou seho l d.
(2) In accordance with s. 6(d), Art. VII of the State Constitution, the board
of co unty commi ss i oner s of any co un ty or the govern ing authority of any
municipality may adopt a n ord inance to allow either or both of the fo llowing
ad ditional homestead exem ptions:
(a) Up to $5 0 ,000 for any person who has t he legal or equitabl e title to real
estate and maintains thereon the perman ent resid ence of the owner, who has
attained age 65, a nd whose house hol d income does not exceed $20,000; or
(b) The amou nt of the assessed value of the property f or any person who
has the legal or equi table title to real estate with a just va lu e les s t han
$250,000 and has maintained thereon the permanent resid ence of the own er
for at least 25 years , w ho h as attained age 65, and whose household In come
does not exceed t he income limitation prescribed in paragraph (a), as
calculated in subsection (3).
(3) Begi nning January 1, 2001, the $20,000 i ncome limitation shall be
adjus t ed annua lly, on Janu ary 1, by the percentage change in the aver age cost-
of-living index in the pe riod January 1 through December 31 of the immediate
pri or year com pared with t he same period for t he year prior to that. The index
is the average of t he monthly cons um er-p rice-i ndex figures for the stated 12-
month period, relative to the United States as a whole, i ssued by the Uni ted
States Depa rtment of Labor.
(4) An ordinance granting an add i tional homestead exemption as authorized
by th i s secti on must meet the following requ i rements:
(a) It must be adopted under t he procedures for adopti on of a
nonemergency ord inance specified in c hapter 125 by a boa r d of co unty
commissioners or chapter 166 by a munici pal gove rning au th ority, except that
the exemption authorized by paragraph (2)(b) must b e authorized by a super
majority (a majority plus one) vote of the members of the govern ing body of
the county or municipality granting such exem ption.
(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
cou nty or municipali ty, this exemption will apply to all tax levies of the county
or municipality granting the exemption, includin g dependent specia l districts
and muni cipal service taxing units .
(c) It must specify the amount of the exemption , which may not exceed the
applicable amount specifi ed in subsection (2). If t he co unty or munici pality
specifies a different exemption amount for dependent specia l districts or
municipal service taxing units, t he exemption amoun t must be uniform in all
dependent special districts or municipal service taxing units within the county
or muni cipa lity.
(d) It must require that a taxpayer claiming the exemption annually submit
to the property appraiser, not l ater than March 1, a sworn statement of
househo ld 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 return s for the prior year, any
wage and earnings statements (W·2 form s), any request for an extension of
time to file returns, and any other docum ents it finds necessary, for each
member of the household, to be submitted for inspection by the property
appra i ser. The taxpayer's sworn statement shall attest to the accuracy of the
documents and grant permission to allow review of the documents if reque sted
by t he property appraiser. Submissio n of suppo rting documentation i s not
required for the renewal of an exemption under this section unless the
property appraiser req uests such documentation. Once the documents have
been inspected by the property appraiser, t hey shall be returned to the
taxpayer or otherwise destroyed. The prop erty appraiser is authorized to
generate random audits of t he taxpayers' sworn statements to ensure the
accuracy of the household income reported . If so selected for audit, a taxpayer
shall execute Interna l Reven ue Service Form 8821 or 4506, which authorizes
the Inter nal Rev enue Service to release tax information to the property
appraiser's office. Al l reviews conducted in accordance with this section shall
be compl eted on or before June 1. The property appraiser may not grant or
renew the exemption if the requ i red document ation requested is not p rovided.
AGENDA I TEM tJ 7B
JULY 27,20 15
(6) The board of co unty comm i ssioners or municipal governi ng authority
must deliver a copy of any ord i nance adop ted under this secti on to th e
property appraiser no later than Dece mb er 1 of the year prior to the year the
exemption w ill take effect. If the ordinance is repealed, the board of county
co mmissioners or municipal governi ng authority shall notify the property
appra i ser no later tha n December 1 of the year prior to the year the exemption
exp i res .
(7) Those persons entitled to the homestead exem ption in s. 196.031 may
apply for and receive an additional hom estea d exemption as provided i n this
section. Receipt of the additional homestead exemption provided for I n this
section sha ll be sub j ect to the provisions of ss. 196. 131 and 196 .161, if
app licabl e.
(8) If title is held joi ntly with right of survivorship , the person resid i ng on
the property and otherwise qualifying may receive the entire amount of the
additional homestead exemption.
(9) If t he pr operty appraiser determines tha t for any year within the
immed i ately previous 10 years a person who was not entitled to the additional
homestead exemption un der thi s section was granted such an exe mpti on, t he
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
t he notice of tax Uen. Any property that i s owned by the taxpaye r and Is
situated in t his state is sub j ect to the taxes exempted by the improper
homestead exemption, pl us a pena l ty of SO percent of the unpaid taxes for
each year and interest at a rate of 15 perce nt per annum . However, if such an
exempti on is improperly granted as a result of a clerica l mistake or omission by
the propert y app r aiser , the perso n who improperl y re ceived the exemption
may not be assessed a penalty and interest. Before any such lien may be filed,
t he owner must be give n 30 days within which to pay the taxes, pena l ties, and
interest. Such a l ien is subject to the proced ures and provisions set forth in s.
196.161 (3).
AGENDA ITEM 11711
J ULY 27,20 15