8.E.
Public Hearing
11/1/2022  | City of Boynton Beach
Agenda Item Request Form |
| Commission Meeting Date: 11/1/2022 | | Requested Action by Commission: Proposed Ordinance No. 22-023 - Second Reading - An Ordinance of the City of Boynton Beach Florida amending Chapter 23, Taxation, Assessments and Fees, Article IV, Additional Homestead Exemption, Section 23-54 to increase the additional homestead exemption for low-income senior citizens from $25,000.00 to $50,000.00; and amending section 23-54 by creating a new Section 23-54(b)(3) to add an additional exemption for low-income long-term senior citizens. First reading took place on October 18, 2022. | | Explanation of Request: At the July 19, 2022 City Commission meeting the Mayor requested for staff to draft an ordinance increasing, to the greatest extent available, the additional homestead exemption for low income seniors.
Chapter 23, Article IV, Section 23-54 of the City's Code of Ordinance currently allows for a $25,000.00 additional homestead exemption for low income seniors.
Florida Statutes Section 196.075 provides authority for a municipality to adopt an ordinance to allow an additional homestead exemption up to $50,000.00 for a person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, who has attained age 65, and whose household income does not exceed $20,000.00 (adjusted annually by the percentage change in the average cost-of-living index).
In addition to the above, Florida Statutes Section 196.075 (copy attached) provides authority for a municipality to adopt an ordinance to allow an additional homestead exemption for the amount of the assessed value of the property for a person who has the legal or equitable title to real estate with a just value less than $250,000, as determined in the first tax year that the owner applies and is eligible for the exemption, and who has maintained thereon the permanent residence of the owner for at least 25 years, who has attained age 65, and whose household income does not exceed the income limitation prescribed in paragraph (a), as calculated in subsection (3) of the statute. This change will need to be approved by a super-majority vote of the City Commission.
| | How will this affect city programs or services? | Fiscal Impact:
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(Additional Homestead) 848properties x $50,000= 42,400,000 value of the exemption.
Difference is 42,400,000-21,202,503 approximately (21,197,497 it will cost the city in assessed value). Based on our current millage rate, it would be a cost in ad valorem revenues of about $170k per year.
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(Low income Senior) 90 properties with an approximate total taxable value of $464,084. Based on our current millage rate, it would be a cost in ad valorem revenues of about $40k per year.
| | Alternatives: 1. Do not approve the additional homestead exemption for low income seniors; 2. Modify the additional homestead exemption provided in the Ordinance; or
3. Choose one of the two exemptions offered. | | Strategic Plan: | | Strategic Plan Application: |
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