File #:
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22-0574
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Name:
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2022 Homestead Exemption for Over 65 & Disabled
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Type:
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Ordinance
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Status:
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Approved
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On agenda:
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6/21/2022
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Final action:
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6/21/2022
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Title:
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Consider/Discuss/Act on an Ordinance Increasing the Homestead Exemption for Residents Over Age 65 and the Disabled
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Attachments:
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1. Ordinance, 2. Presentation
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Title
Consider/Discuss/Act on an Ordinance Increasing the Homestead Exemption for Residents Over Age 65 and the Disabled
Summary
COUNCIL GOAL: Financially Sound Government
(4A: Provide Funding and Organizational Framework to Ensure Continual Economic Improvements)
MEETING DATE: June 21, 2022
DEPARTMENT: Budget
CONTACT: Mark Holloway, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
- Approve the ordinance.
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- ITEM SUMMARY:
- This agenda item discusses the impact of increasing the tax exemption for residents over age 65 and the disabled.
- For every $5,000 increase in exemption, eligible homeowners will pay $25 less in taxes at current tax rate.
- For every $5,000 increase in exemption, non-eligible homeowners will pay $2.80 more in taxes at current tax rate.
- At current exemption level of $65,000, non-eligible homeowners pay $36 more in taxes per year at current tax rate.
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- BACKGROUND INFORMATION:
- The homestead exemption for residents over age 65 and the disabled was increased in 2018 to $65,000 (current exemption), and in 2017 to $60,000. Prior to that, the exemption for residents over 65 had been $50,000 since 2005, with the exemption for disabled residents added in 2006. Between 1999 and 2005, the exemption was $30,000. Before 1999, the exemption was $4,500 since 1979.
- When compared with other area cities, exemptions range from $30,000 to $100,000.
- The county appraisal district must receive notice of adoption from the City before July 1 in order for the increase to be effective October 1 for 2022 taxes.
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- FINANCIAL SUMMARY:
- Based on the current tax rate and the current number of households claiming the over 65 and disabled exemption, the potential reduction in revenue for every $5,000 increase in exemption is approximately $231,000.
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