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R5F-Homestead Exemption For Low-Income Senior Citizens -Bower-COMMISSION ITEM SUMMARY Condensed Title: An Ordinance Adopting Amendment 11 of Florida Constitution. Issue: Should the City Commission approve an Ordinance at First Reading amending Chapter 1 02 of the City code? Item Summar /Recommendation: FIRST READING On November 6, 2012, voters approved Amendment 11 of the Florida Constitution revising the existing additional homestead exemption for low-income seniors and authorizing a new additional exemption for them. On December 19, 2012, the Property Appraiser's Office advised the City that the new exemption could only be applied by the taxing authority once an ordinance is adopted by a super ma·orit of the members of the Cit Commission Cd~is~~oar:_t!_f!eco~_'!l~~~!!.~r:a:..._~---.-·~--=:=-==--==~-=======~==] Financial Information: ·-~~~~~~ or-~·· · 1 ~+-· · Amount · ---r--_________ ··_· 3ccount_:~=_ --·--·--- r~--·-~ r--... 2 ·.··j·. -_ -------t .. --.-·-------·~------.. --~----~ 1 I r-· 3 ------T--~-·---·-·----~-·-----~.----- L. ____ __J f-.:: ---------·-· .. ----·-~------------ OBPI ! Total ·---·----~L___ --.-.... --L-~---~~---·-·--·--··~~--.. --.-~ -· Financial Impact Summary: According to Miami-Dade County Property Appraiser Office, the City of Miami Beach has 305 Qualifying Seniors of which 89 will be benefited by this ordinance. Based on the 2012 Preliminary~~men_! _ _8o1Ub~ t2!.~f!ll?_?.Ct_!Q...tb~ Ci!Y.L!"!!evenu~l<?s~~ill_be jj_6, ~ 42.:_ ~ ... pity Clerk's Office Legislative Tracking: -·-~---·---· L~·· ··---~·~·-· Si n-Offs: Department Director l · Assistan.t City Manager ---·---------~-------·-,--,-·--__ ,,_,_.,.,_.,. __ .. ________ ·-~ T:\AGENDA\2013\January 16\Hotel Parking SUM 1st.docx MfAMIBEACH 394 anager ~~-------·- AGENDA ITEM _R~'S_;_F_·· _ DATE /·-/{y/3_ ... .;e (9 MIAMI BEACH City of Miami Beach, 1700 Convenlion Center Drive, Miami Beach, Florida 33139, www. miomibeochfLgov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the Clty Commission fROM' Kathie G. Brooks, Interim City Manager )4'A /---. , DATE: January 16, 2013 FIRST READING SUBJECT:AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 102 OF THE MIAMI BEACH CITY CODE, ENTITLED "TAXATION," BY CREATING SECTION 102-2, TO BE ENTITLED "HOMESTEAD EXEMPTION FOR LOW-INCOME SENIOR CITIZENS WHO ARE LONG- TERM RESIDENTSn; PROVIDING FOR AN ADDITIONAL HOMESTEAD EXEMPTION FOR CERTAIN LOW-INCOME QUALIFYING SENIOR CITIZENS WHO ARE LONG-TERM RESIDENTS TO BE APPLIED TO MILLAGE RATES LEVIED BY THE CITY OF MIAMI BEACH; REQUIRING DELIVERY OF ORDINANCE TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AN EFFECTIVE DATE, AND REQUIRING A MAJORITY PLUS ONE VOTE OF THE MEMBERS OF THE CITY COMMISSION. ADMINISTRATION RECOMMENDATION Approve the Ordinance on First Reading and set a Second Reading Public Hearing for February 6, 2013. BACKGROUND On November 6, 2012, voters approved Amendment 11 of the Florida Constitution revising the existing additional homestead exemption for low-income seniors and authorizing a new additional exemption for them. On December 19, 2012, the Property Appraiser's Office advised the City that the new exemption could only be applied by the taxing authority once an ordinance is adopted by a super majority of the members of the City Commission. According to Miami-Dade County Property Appraiser Office, the City of Miami Beach has 305 Qualifying Seniors of which 89 will be benefited by this ordinance. Based on the 2012 Preliminary Assessment Roll, the total impact to the City in revenue loss will be $16,742. In order for this exemption to be applicable for the 2013 tax roll, we have to submit our adopted ordinance to the County's Property Appraiser's Office no 395 later than March 1, 2013. These Amendment revisions are as follows: Changes to the existing additional Homestead exemption for Qualifying Seniors • The amount of exemption that can be granted to a qualifying senior is now a flat $50,000 instead of an amount up to $50,000. • A municipality can adopt an ordinance granting either or both of these additional exemptions authorized by the constitution for qualifying seniors. Provisions regarding the new additional Homestead exemption for Qualifying Seniors • The amount of this exemption is equal to the assessed value of the Homestead, up to a just value of less than $250,000; and, • The owner must have made the property his permanent residence for 25 years; and • This exemption can only be granted by a super majority of the members of the municipal governing body. Provisions that apply to both additional exemptions for Qualifying Seniors • The owner's household income must not exceed $27,030; • Municipalities must pass a local ordinance granting either or both of these exemptions; and, • These additional exemptions will first apply to the 2013 tax roll and to all subsequent tax rolls. CONCLUSION That the Mayor and City Commission approve the Ordinance by a super majority on First Reading and set a Second Reading Public Hearing for February 6, 2013 396 ORDINANCE NO. AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 102 OF THE MIAMI BEACH CITY CODE, ENTITLED "TAXATION," BY CREATING SECTION 102-2, TO BE ENTITLED "HOMESTEAD EXEMPTION FOR LOW-INCOME SENIOR CITIZENS WHO ARE LONG-TERM RESIDENTSn; PROVIDING FOR AN ADDITIONAL HOMESTEAD EXEMPTION FOR CERTAIN LOW-INCOME QUALIFYING SENIOR CITIZENS WHO ARE LONG-TERM RESIDENTS TO BE APPLIED TO MILLAGE RATES LEVIED BY THE CITY OF MIAMI BEACH; REQUIRING DELIVERY OF ORDINANCE TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AN EFFECTIVE DATE, AND REQUIRING A MAJORITY PLUS ONE VOTE OF THE MEMBERS OF THE CITY COMMISSION. WHEREAS, on September 20, 2011, Representative Jose Oliva (R-Hialeah) filed House Joint Resolution 169 for consideration during the 2012 Florida legislative session related to property tax relief for low-income senior citizens who are long-term residents; and WHEREAS, during the 2012 session, the Florida Legislature enacted House Joint Resolution 169 and placed the question on the statewide November 2012 ballot as Amendment No. 11, and also enacted House Bill 357 implementing Amendment No. 11 contingent on voters approving it, Chapter 2012-57, Laws of Florida; and WHEREAS, on November 8, 2012, voters approved Amendment No. 11 by the required 60 percent needed for passage; and WHEREAS, pursuant to Amendment No. 11 and House Bill 357, now codified as Article VII, Section 6(d)(2) of the Florida Constitution and Section 196.075, Florida Statutes, respectively, the board of county commissioners of any county and the governing body of municipalities may adopt an ordinance to allow an additional homestead exemption for 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 of less than $250,000 and has maintained thereon the permanent residence of the owner for at least 25 years, who has attained the age of 65, and whose household income does not 397 exceed the income limitations set forth in state Jaw, which is currently $27,030 and adjusted annually; and WHEREAS, Article VII, Section 6(d) provides that a municipality may implement this low-income senior homestead exemption for long-term residents in addition to or in place of the existing additional $50,000 senior citizen homestead exemption at the option of the municipality; and WHEREAS, Section 196.075, Florida Statutes, provides that this low-income senior exemption must be authorized by a majority plus one vote of the members of the governing body of the municipality granting such exemption; and WHEREAS, on May 5, 2007, the Mayor and City Commission pursuant to Ordinance No. 2007-3558 increased the homestead exemption for certain qualifying senior citizens from $25,000 to $50,000, as codified in Section 102-1 of the Code of the City of Miami Beach, Florida; and WHEREAS, in addition to the existing additional $50,000 senior citizen homestead exemption adopted pursuant to Ordinance 2007-3558, the Mayor and City Commission wish to implement the additional homestead exemption for low-income senior citizens who are long~term residents in accordance with the provisions of Article VII, Section 6{d)(2), of the Florida Constitution, and Section 196.075 of the Florida Statutes. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA by a majority plus one vote of the members of the City Commission as follows: SECTION 1. Section 102-2 of the Code of the City of Miami Beach, Florida, is hereby created to read as follows: CHAPTER 102 TAXATION Article I. In General * * * 2 398 Sec. 1 02~2. Homestead exemption for low-income senior citizens who are long-term residents. (a} In accordance with Article VII, Section 6(d)(2) of the Florida Constitution and Section 196.075 of the Florida Statutes, any Qerson who meets the following criteria shall be entitled to make application for an additional homestead exemption for the amount of the assessed value of the property: {i) has the legal or eguitable title to real estate located within the City of Miami Beach, Florida with a just value of less than ~250,000, (ii) has maintained thereon the Qermanent residence of the owner for at least 25 years, (iii) has attained the age of 65, and Ov) has a household income that does not exceed the income limitations set forth in state law, which is currently $27,030 and adjusted annually. (b) The exemption set forth in subsection (a} above shall be in addition to and shall not replace the additional $50,000 senior citizen homestead exemption adopted pursuant to Ordinance No. 2007-3558 and codified in Section 102-1 of the City Code. (c) Every person claiming the additional homestead exemption pursuant to subsection {a} above must file an application therefore with the Miami-Dade County Property Appraiser ("Property Appraiser") no later than March 1 of each year for which such exemption is claimed. Such application shall include a sworn statement of household income for all members of the household and shall be filed on a form prescribed by tf'!e Florida Department of Revenue. On or before June 1 of each such year, every applicant must file supporting documentation with the Property Appraiser, unless the filing of annual supporting documentation is waived by the Miami Dade County Board of County Commissioners. Such documentation shall include copies of all federal income tax returns. wage and earning statements, and such other documentation as required by the Miami Dade County Board of County Commissioners. including documentation necessary to verify the income received by all of the members of the household fo_r the prior year. 3 399 (d) Failure to file the application and sworn statement by March 1 or failure to file the required supporting documentation by June 1 of any given year shall constitute a waiver of thQ_additional exemption privilege for that year. (e} Notwithstanding subsections (c) and (d) above, if the Property Appraiser, pursuant to Section 196.011 (9). Florida Statutes, requests that the Miami-Dade County Board of County Commissioners waive the requirement that an annual application and income statement be made for renewal of the exemption provided in Section 196.075, then after an initial application for exemption has been made and the exemption is granted pursuant to Section 196.075, subsection (c) and (d) shall not apply and the requirement that an annual renewal application or Income Statement be submitted to the Property Appraiser for exemption of prop~rty within the County shall be waived except in the circumstances set forth below. A timely annual application together with the required Income Statement for exemption shall be required whenever: (i} property exempted on the assessment roll of the immediately preceding tax year is sold or otherwise disposed of, (ii) the ownership changes in any manner, (iii) the applicant ceases to use the property as his or her homestead, or (iv) the status of the owner changes so as to change the exempt status of the property, as provided in Section 196.011 (9}(a}, Florida Statutes. (f) This additional exemption shall be available commencing with the 2013 tax roll and shall continue with all subsequent tax rolls. {g) Commencing Japuary 1, 2013, and each January 1 thereafter, the annual income limitation applicable to this Ordinance shall be adjusted annually as provided in state law and shall be apQiicable as of January 1 of each year. {h) The City Clerk shall file a copy of this Ordinance in the appropriate books anp records and shall transmit a copy to the Miami-Dade County Property Appraiser on or before March 1, 2013. SECTION 2. Repealer. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. 4 400 SECTION 3. Severability. If any section, sentence, clause or phrase of this ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this ordinance. SECTION 4. Codification. It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this ordinance shall become and be made a part of the Code of the City of Miami Beach, Florida. The sections of this ordinance may be renumbered or re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word. SECTION 5. Effective Date. This Ordinance shall take effect the __ day of ______ , 2013. PASSED and ADOPTED this __ day of _______ , 2013. ATTEST: RAFAEL E. GRANADO, CITY CLERK Underline denotes additions StAke through denotes deletions (Sponsored by Mayor Matti Herrera Bower and Vice"Mayor Michael Gongora) F:\ATTO\TURN\ORDINANC\Low Income Senior Homestead Exemption.rtf 5 401 MATTI HERRERA BOWER MAYOR APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION