File #: 17-506    Name: Tax Exemption for Over Age 65
Type: Ordinance Status: Approved
In control: City Council Regular Meeting
On agenda: 6/20/2017 Final action: 6/20/2017
Title: Consider/Discuss/Act on an Ordinance Increasing the Homestead Exemption for Residents Over Age 65
Attachments: 1. Ordinance, 2. Presentation

Title

Consider/Discuss/Act on an Ordinance Increasing the Homestead Exemption for Residents Over Age 65

 

Summary

 

COUNCIL GOAL:                     Financially Sound Government

 

MEETING DATE:                     June 20, 2017

 

DEPARTMENT:                      Budget

 

CONTACT:                                            Mark Holloway, Chief Financial Officer

 

 

RECOMMENDED CITY COUNCIL ACTION:

  • Approve the ordinance.
  •  
  • ITEM SUMMARY:
  • This item was presented at the May 16th Council meeting, but was tabled at the request of Council until the new Mayor and Council were seated.
  • This agenda item discusses the impact of increasing the tax exemption for residents over age 65.
  • For every $5,000 increase in exemption, eligible homeowners will pay $29 less in taxes at current tax rate.
  • For every $5,000 increase in exemption, non-eligible homeowners will pay $3.28 more in taxes at current tax rate.
  •  
  • BACKGROUND INFORMATION:
  • The current homestead exemption for residents over age 65 has been $50,000 since 2005.  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 $80,000.
  • 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 2017 taxes.
  •  
  • SPECIAL CONSIDERATIONS: None
  •  
  • FINANCIAL SUMMARY:                      
  • Based on the current tax rate and the current number of households claiming the over 65 exemption, the potential reduction in revenue for every $5,000 increase in exemption is approximately $200,000.