SARASOTA COUNTY GOVERNMENT
Office of the County Attorney
Interoffice Memorandum
No. 1207
TO: Honorable Chair and Members of
the Board of County Commissioners FROM: ~,Stephen E. DeMarsh, County Attorney
RE: Senior Ad Valorem Tax Exemption
DATE: December 13, 2012
Background:
On November 3, 1998, voters approved an amendment to the Florida Constitution providing for an increased homestead exemption to certain qualified property owners aged 65 and older in an amount not to exceed $50,000 (the ~‘SeniorTax Exemption”). The amendment is codified in Article VII, Section 6(d) of the Constitution and further provides that general law shall be promulgated to define terms and to provide the option for local governments to adopt an ordinance implementing the exemption. Implementing law for the Senior Tax Exemption was subsequently adopted and codified in Section 196.075(d), Florida Statutes. Subsequently, on November 11, 2002, the Board of County Commissioners adopted Ordinance No. 2002-085, codified as Article IV, Chapter 114 of the County Code, which provides for a Senior Tax Exemption in the amount of $5,000 for qualifying property owners.
In April 2012, the Florida legislature approved House Joint Resolution No. 169, which provided an amendment to the Senior Tax Exemption as set forth in Article VII, Section 6 of the Florida Constitution, subject to approval by the electors (Attachment 1). The constitutional amendment provides an additional exemption for qualifying seniors equal to the assessed value of real estate with a just value of less than $250,000. It made no changes to the original Senior Tax Exemption, leaving it discretionary with local government to determine the amount of the exemption up to $50,000. The amendment further provides that a local government may by ordinance provide for either or both of the Senior Tax Exemptions, i.e., an exemption not exceeding $50,000 and the tax exemption tied to just value of the property.
In June 2012, subject to voter approval of the proposed constitutional amendment, the Governor signed into law an amendment to Section 196.075(d), Florida Statutes, authorizing the additional tax exemption tied to the just value of the property (Attachment 2). However, the exemption language in the implementing law differed from the language in the constitutional amendment in that the statutory amendment changed the language regarding the original Senior Tax Exemption from “up to $50,000” to a flat $50,000. This removed the local government’s discretion to provide for an exemption of less than $50,000.
The constitutional amendment to the Senior Tax Exemption was approved by referendum and, by operation of law, the revision to Section 196.075(d) became effective immediately.
Prospective Implementation of Senior Tax Exemption:
In light of the apparent conflict between the constitutional amendment and the implementing legislation, on November 28, 2012, the Florida Department of Revenue issued a memorandum stating that “until the Legislature is able to address this issue, or the courts or Attorney General provide guidance to the contrary, there is no reason to invalidate current or new ordinances enacting exemptions for low-income seniors that are less than $50,000 (Attachment 3). Thus, according to the DOR, Sarasota County’s Senior Tax Exemption of $5,000 would remain in effect.
By letter dated December 3, 2012, Bill Furst, Property Appraiser, informed the Commission of the status of the apparent conflict regarding the Senior Tax Exemption and stated that even though the DOR had issued a memorandum stating that the Property Appraisers should continue to implement Senior Tax Exemptions of less than $50,000, “until this matter is corrected, or not, by the legislature, it is suggested that you enact a new or revised Senior Homestead Exemption ordinance that addresses the amended statute” (Attachment 4).
In conversations our Office has had with the Property Appraiser’s Office, on advice from its legal counsel as well as counsel for the Property Appraiser’s Association, the Property Appraiser will not be implementing the current Senior Tax Exemption of $5,000 set forth in the County Code unless the statutes are amended to allow an exemption up to $50,000. It is the position of the Property Appraiser’s Office that to implement a Senior Tax Exemption of less than $50,000 would be contrary to general law.
County Commission Options:
There are two options for the November 2013 Tax Year:
1) The Board can adopt an ordinance amending Article VI, Chapter 114 of the County Code to provide for a $50,000 Senior Tax Exemption and/or a tax exemption based on the value of the property in conformance with Section 196.075(d), Florida Statutes. The Property Appraiser’s office has indicated that if such an ordinance is adopted by February 2013, it could implement the exemption for Tax Year 2013.
2) The Board can no nothing and wait for a legislative fix. If the legislature does not timely act to address the discrepancy between the constitution and the implementing law, the Board’s non-action will result in no Senior Tax Exemption being implemented in Tax Year 2013.
Attachments
{13-51000-00175015DOCX;1 }
Committee Substitute for House Joint Resolution No. 169 Ajoint resolution proposing an amendment to Section 6 of Article VII of the
State Constitution to authorize the Legislature, by general law, to allow counties and municipalities to grant an additional homestead tax exemp-tion equal to the assessed value of homestead property, if the property has a just value lower than a specified amount, to an owner who has maintained permanent residency on the property for a ‘specified duration, who has attained age 65, and whose household income does not exceed a specified amount.
Be It Resolved by the Legislature of the State of Florida:
That the following amendment to Section 6 of Article VII of the State Constitution is agreed to and shall be submitted to the electors of this state for approval or rejection at the next general election or at an earlier special election specifically authorized by law for that purpose:
ARTICLE VII
FINANCE AND TAXATION
SECTION 6. Homestead exemptions.—
(a) Every person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another legally or naturally dependent upon the owner, shall be exempt from taxation thereon, except assessments for special benefits, up to the assessed valuation of twenty-five thousand dollars and, for all levies other than school district levies, on the assessed valuation greater than fifty thousand dollars and up to seventy-five thousand dollars, upon establishment of right thereto in the manner prescribed by law. The real estate may be held by legal or equitable title, by the entireties, jointly, in common, as a condominium, or indirectly by stock ownership or membership representing the owner’s or member’s proprietary interest in a corporation owning a fee or a leasehold initially in excess ofninety-eight years. The exemption shall not apply with respect to any assessment roll until such roll is first determined to be in compliance with the provisions of section 4 by a state agency designated by general law. This exemption is repealed on the effective date of any amendment to this Article which provides for the assessment of homestead property at less than just value.
(b) Not more than one exemption shall be allowed any individual or family unit or with respect to any residential unit. No exemption shall exceed the value of the real estate assessable to the owner or, in case of ownership through stock or membership in a corporation, the value of the proportion which the interest in the corporation bears to the assessed value of the property.
1
HJR 169 LAWS OF FLORIDA HJR 169 (c) By general law and subject to conditions specified therein, the Legislature may provide to renters, who are permanent residents, ad valorem tax relief on all ad valorem tax levies. Such ad valorem tax relief
shall be in the form and amount established by general law.
(d) The legislature may, by general law, allow counties or municipalities, for the purpose of their respective tax levies and subject to the provisions of general law, to grant either or both of the following an additional homestead tax exemptions:
(1) An exemption~not exceeding fitty thousand dollars to any person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner and who has attained age sixty-five and whose household income, as defined by general law, does not exceed twenty
thousand dollars~o~
(2) An exemption equal to the assessed value of the property to any person who has the legal or equitable title to real estate with a just value less
th~
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 has attained age sixty-five and whose household income does not exceed the income limitation prescribed in paragraph (1).The general law must allow counties and municipalities to grant these this additional exemptions exemption, within the limits prescribed in this subsection, by ordinance adopted in the manner prescribed by general law, and must provide for the periodic adjustment of the income limitation prescribed in this subsection for changes in the cost of living.
(e) Each veteran who is age 65 or older who is partially or totally permanently disabled shall receive a discount from the amount of the ad valorem tax otherwise owed on homestead property the veteran owns and resides in if the disability was combat related, the veteran was a resident of this state at the time of entering the military service of the United States, and the veteran was honorably discharged upon separation from military service. The discount shall be in a percentage equal to the percentage of the veteran’s permanent, service-connected disability as determined by the United States Department of Veterans Affairs. To qualif~r for the discount granted by this subsection, an applicant must submit to the county property appraiser, by March 1, proof of residency at the time of entering military service, an official letter from the United States Department of Veterans Affairs stating the percentage of the veteran’s service-connected disability and such evidence that reasonably identifies the disability as combat related, and a copy of the veteran’s honorable discharge. If the property appraiser denies the request for a discount, the appraiser must notify the applicant in writing of the reasons for the denial, and the veteran may reapply. The Legislature may, by general law, waive the annual application requirement in subsequent years. This subsection shall take effect December 7, 2006, is
self-executing, and does not require implementing legislation. 2
HJIR 169 LAWS OF FLORIDA HJR 169 BE IT FURTHER RESOLVED that the following statement be placed on the ballot:
CONSTITUTIONAL AMENDMENT ARTICLE VII, SECTION 6
ADDITIONAL HOMESTEAD EXEMPTION; LOW-INCOME SENIORS WHO MAINTAIN LONG-TERM RESIDENCY ON PROPERTY; EQUAL TO ASSESSED VALUE.—Proposing an amendment to the State Constitution to authorize the Legislature, by general law and subject to conditions set forth in the general law, to allow counties and municipalities to grant an additional homestead tax exemption equal to the assessed value of home-stead property if the property has ajust 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 age 65, and who has a low household income as defined by general law.
Filed in Office Secretary of State April 13, 2012.
3
196.075 - - 2012 Florida Statutes-The Florida Senate
the owner must be given 30 days within which to pay the taxes, penalties, and interest. Such a lien is subject to the procedures and provisions set forth in s.
History.—s. I, ch. 99-341; s. 1, ch. 2002-52; s. 1, ch. 2007-4; s. 26, ch, 2010-5;s.
1, ch. 2012-57.
‘Note.— Section 5, ch. 2012-57, provides that “[e]xcept as otherwise expres~ provided in this act, this act shall take effect upon the approval of House Joint
Resolution 169, or a similar joint resolution having substantially the same specific intent and purpose, at the general election to be held in November 2012 or at an earlier special election specifically authorized by law for that purpose, and shall first apply to the 2013 tax roll.” House Joint Resolution 169 passed; if it is approved by a vote of the electors, s. 196.075 will read:
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” means the adjusted gross income, as defined in s. 62 of the United States Internal Revenue Code1 of all members of a household.
(2) In accordance with s. 6(d), Art. VII of the State Constitution, the board of county commissioners of any county or the governing authority of any municipality may adopt an ordinance to allow either or both of the following
additional homestead exemptions:
(a) Fifty-thousand dollars for any 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; or
(b) The amount of the assessed value of the property for any person who
has the legal or equitable title to real estate with a just value less than $250,000 and 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).
(3) Beginning January 1, 2001, the $20,000 income limitation shall be adjusted annually, on January 1, by the percentage change 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 the year prior to that. The index is the average of the monthly consumer-price-index figures for the stated 12-month period, relative to the United States as a whole, issued by the United States Department of Labor.
(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
196.075 - -2012 Florida Statutes-The Florida Senate
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.
(5) The department must require by rule that the filing of thestatement 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 finds necessary, for each member of the household, to be submitted for inspection by the property appraiser. The taxpayer’s sworn statement shall attest to theaccuracy of the documents and grant permission to allow review of the documents if requested by the property appraiser. Submission of supporting documentation is not required for the renewal of an exemption under this section unless the property appraiser requests such documentation. Once the documents have been inspected by the property appraiser, they shall be returned to the taxpayer or otherwise destroyed. The property appraiser is authorized to generate random audits of the taxpayers’ sworn statements to ensure the accuracy of the household income reported. If so selected for audit, a taxpayer shall execute Internal Revenue Service Form 8821 or 4506, which
authorizes the Internal Revenue Service to release tax information to the property appraiser’s office. All reviews conducted in accordance with this
section shall be completed on or beforeJune 1. The property appraiser may not grant or renew the exemption if the required documentation requested is not provided.
(6) The board of county commissioners or municipal governing authority must deliver a copy of any ordinance adopted under this section to the property appraiser no later than December 1 of the year prior tothe year the exemption will take effect. If the ordinance is repealed, the board of county commissioners or municipal governing authority shall notify the property appraiser no later than December 1 of the year prior to the year the exemption expires.
(7) Those persons entitled to the homestead exemption in s. 196.031 may
apply for and receive an additional homestead exemption as provided in this section. Receipt of the additional homestead exemption provided for in this
196.075 -- 2012 Florida Statutes -The Florida Senate
section shall be subject to the provisions of ss. 196.131 and 196.161, if applicable.
(8) If title is held jointly with right of survivorship, the person residing on the property and otherwise qualifying may receive the entire amount of the additional homestead exemption.
(9) If the property appraiser determines that for any year within the immediately previous 10 years a person who was not entitled to the additional homestead exemption under this section was granted such an exemption, the 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 personin the county, and that property must be identified in the notice of tax lien. Any property that is owned by the taxpayer and is situated in this state is subject to the taxes exempted by the improper homestead exemption, plus a penalty of 50 percent of the unpaid taxes for each year and interest at a rate of 15 percent per annum. However, if such an exemption is improperly granted as a result of a clerical mistake or omission by the property appraiser, the person who improperly received the exemption may not be assessed a penalty and interest. Before any such lien may be filed, the owner must be given 30 days within which to pay the taxes, penalties, and interest. Such a lien is subject to the procedures and provisions set forth in s. 196.161(3).
Disclaimer: The information on this system is unverilied. The journals or printed bills of the respective chambers should be consulled forofficial purposes. Copyright © 2000- 2012 State of Florida.
Kathleen Schneider
From: DORPTO [DORPTO@dor.state.fl.us]
Sent: Wednesday, November 28, 2012 10:15 AM
To: DORPTO
Subject: Information on Senior Exemption Importance: High
MEMORANDUM:
DATE: November 28, 2012
TO: Property Appraisers
FROM: James McAdams, Director
Property Tax Oversight (PTO) SUBJECT: Information on Senior Exemption
The Department has received notification of an apparent glitch in the implementing language for the new senior exemption (Chapter 2012-57, Laws of Florida, and CS/SB/HB 357).
It is our understanding that the Legislature’s intent was to allow counties and municipalities to grant an additional
exemption to low-income seniors up to $50,000, ratherthan a flat exemption amount of $50,000. Therefore, until the Legislature is able to address this issue, or the courts or Attorney General provide guidance to the contrary, there is no
reason to invalidate current or new ordinances enacting exemptions for low-income seniors that are less than $50,000. We will notify you as soon as possible of any new developments. In the interim, please let us know if you have any questions at DORPTO@dor.state.fl.us.
NOTIFICATION TO RECIPIENTS: If you have received this e-mail in error, please notify us immediately by return e-mail. If you receive a Florida Department of Revenue communication that contains personal or confidential information, and you are not the intended recipient, you arc prohibited from using the information in any way. All record ofany atch communication (electronic or otherwise) should be destroyed in its entirety.
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Bill Furst
SARASOTA COUNTY I~ROPERTY APPRAISER
2001 Adams Lane, Sarasota, 1~L, :3~37 Pit: 94 1 Sb18200 1: 941 .861.8260 w\vw,~c-pa.com
December 3, 2012
Board of County Commissioners
Attn: Christine Robinson, Chairwoman
SarasotaCounty Administration Building 1660 Ringling Blvd
Sarasota, FL 34236
Re; Adopted changes to Florida Statute Section 196.075
Dear Christine:
Chapter 2012-57 of the Florida Session Laws was signed into law by the Governor on April 6, 2012. I have attached a copy of it hereto [Please note Section 196.075(2) & (4)(c) F.S.]. Adjunct to that arid issued on November 7, 2012 by Property Tax Oversight, is PTO 12-13 [See attached P10 12-13]. I direct your attention to the first section, Q1giiq~.s tothe ~ Seniors, wherein it is emphasized that there is a change to F.S. Section 196.075(2) making the additional Senior Homestead Exemption a “flat” amount of $50,000. This change is in conflict with the terms of F.S. Section l96.075(4)(c).
This particular change to the Statute poses a significant decision to be made by each governmental authority that has previously adopted a Senior Homestead Exemption. Inquiries made by my office have determined that only Sarasota County, the City of Sarasota and the Town of Longboat Key have adopted such an ordinance in Sarasota County:
Sarasota County Chapter 114 Article VI Sec. 144-182 $5000.00 City of Sarasota Ordinance No. 04-4510 $25~poo,oo Town of Longboat Key Title 3 Chapter 37 Section 37.15 $25,0’~0.00
Since the law adopted in each jurisdiction specifies an amount that is not a “flat” $50,000.00, we at the Property Appraiser’s office perceive there to be a major issue with the implementation of the Senior Homestead Exemption in Calendar Year 2013, without a current amendment to your Senior Homestead Exemption ordinance.
Subsection 4(c)of F.S. Section 196.075 specifies in part, that “It [the Senior Homestead Ordinance] must specify the amount of the exemption, which may not exceed the applicable amount specified in subsection (2)
- .. “. Subsection (2) specifies “Fifty-thousand dollars” and no longer contains the modifier of “up to”. This
office cannot reconcile the contradictory language of the two subsections of the statute [2 and 4(c)] and therefore must interpret the amended statute to supersede the current local ordinance, as adopted. In doing so, this office must disallow the 2013 implementation of the current Senior Homestead Exemption in each jurisdiction that does not make a change to its local ordinance consistent with the changes the Legislature has
In order to addressthis situation, your current ordinance would have to be amended or a new ordinance adopted, either of which should specify that theSenior Homestead Exemptionis a “flat” $50,000.00 to meet
the amended statutory requirement. The fiscal implications are obvious. The current level of exemption
($5,000.00) isone tenth of what is now required, placing the County in a situation that will require a tenfold increase intheSenior HomesteadExemption level. Should you elect to adopt changes to your Senior Homestead Ordinance to be consistent with the requirements of the amendedF.S. Section196.075,the property appraiser would administratively extend the deadline for compliance with the amended statute; that is, to deliver a copy of the new or amended ordinance, to a date in February2013 that would allow a
reasonable time for Sarasota County to adopt a new or amended ordinance consistent with the amended F.S.
Section 196.075.
There is an effort being made in Tallahassee tocorrect whatis seemingly an error on the part of the “scribes” who translated the House Joint Resolution No.169 into the wording of Chapter2012-57Laws of Florida. It will
require an act of the legislature to do so. On November28, 2012, Property TaxOversight issued a memo entitled “Information on Senior Exemption” [see attached PTOmemo), The memo confirms that the amended statute is inconsistent with the “up to$50,0000” language of the original statute and suggests that the governmental bodies responsible for passage of the currentSeniorHomesteadExemption Ordinances
ignoretheexistenceof the amended statute asit relates to the amount of theSenior Homestead Exemption.
However, the amended statutethat is currentlyin effectclearly requires that the SeniorHomestead
Exemption amount be a “flat” $50,000.00. Itdoes not appear that the legislative correction can be
implemented in time to address theSenior HomesteadExemptionfor the2013Tax Roll. Until this matter is corrected, or not, by the legislature, itis suggested that you enact a new or revisedSenior Homestead Exemptionordinance that addresses the amended statute.
This letter is to be considered as an informational observation/suggestion by the Sarasota County Property
Appraiserand his legal advisors and should notbe considered as legal advice or a directive to take any action.
If you would like to further discuss this matter, please do not hesitate to contact Brian Loughrey, Administrative Director, 861-8299.
Sincerely,
Bill Furst
Sarasota County Property Appraiser cc: Joe Barbetta, Commissioner
Nora Patterson, Commissioner Carolyn Mason, Commissioner Charles Hines, Commissioner
Randall Reid, Cou nty Administrator
