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Home My Public Portal About12-8473 Create Addirtional Inequities in Florida' Tax System Sponsored by: City Manager Resolution No. 12-8473 A RESOLUTION OF THE CITY OF OPA-LOCKA, FLORIDA CONCERNING AMENDMENT 4 TO THE FLORIDA CONSTITUTION WHICH, IF ADOPTED, WOULD CREATE ADDITIONAL INEQUITIES IN FLORIDA'S TAX SYSTEM BY GRANTING CERTAIN TAX BREAKS TO SOME TAXPAYERS AT THE EXPENSE OF OTHER TAXPAYERS; PROVIDING FOR INCORPORATION Of RECITALS; PROVIDING AN EFFECTIVE DATE WHEREAS,a proposed constitutional amendment sponsored by the Florida Legislature will be placed on the 2012 general election ballot as"Amendment 4"; and WHEREAS,this proposed constitutional change reduces the current assessment limitation on non-homestead real property from 10%to 5%; and; and WHEREAS, the proposed amendment grants first-time homesteaders an additional homestead exemption equal to 50 percent of the just value of the property up to the county median home value; and WHEREAS, the proposed amendment creates a provision that allows the Legislature by general law to prohibit increases in the assessed value of homestead property if the just value of the property decreases; and WHEREAS, Amendment 4 creates inequities for non-homestead properties by allowing identical properties to be taxed differently,and Amendment 4 extends the sunset provision already in the Florida Constitution from 2019 to 2023,which allows these inequities to be in place longer;and Resolution No. 12-8473 WHEREAS,Amendment 4 shifts the tax burden to new or growing businesses,creating an unfair disadvantage for new businesses that would have to pay higher property taxes than their more established counterparts; and WHEREAS, the non-homestead assessment cap reduction and the first-time homesteader provision apply to City and county taxes and not to school property taxes; and WHEREAS, over the last few years, several property tax initiatives, including additional homestead exemptions, Save Our Homes portability and statutory millage caps, have also contributed to the unequal treatment of Florida taxpayers; and WHEREAS, there are estimates of the total tax impact of Amendment 4 of$1.6 billion cumulatively over a four-year period beginning in 2013-2014, with approximately $447 million borne by cities. NOW,THEREFORE,BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA: Section 1. The recitals to the preamble herein are incorporated by reference. Section 2. The City Commission of the City of Opa-locka is concerned about the impact of Amendment 4 may have on its property taxes. Section 3. The City Commission of the City of Opa-locka urges its residents to carefully consider the potential adverse consequences of Amendment 4 before voting in the November 2012 general election. Section 4. A copy of this resolution shall be provided to the Florida Legue of Cities,Inc. and other interested parties. Resolution No. 12-8473 Section 3. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 10th day of October, 2012. MY TAYLOR MAYOR Attest to: '1 1 anna Flores nterim City Clerk Approved as ,s form and legal suff ie, y: o•• eller C. yAttorney Moved by: COMMISSIONE OLMES Seconded by: VICE MAYOR JO' SON Commission Vote: 5-0 Commissioner Holmes: YES Commissioner Miller: YES Commissioner Tydus: YES Vice-Mayor Johnson: YES Mayor Taylor: YES o l 0 0/r4. 0 Op O \/ 9 F v d 11 0 4 R'O R A-09 4" City of Opa-Locka Agenda Cover Memo Commission Meeting 10/10/2012 Item Type: Resolution Ordinance Other Date: X (EnterXin box) Fiscal Impact: Ordinance Reading: 1st Reading 2nd Reading (EnterXin box) Yes No (EnterXin box) Public Hearing: Yes No Yes No (EnterXin box) X X Funding Source: (Enter Fund&Dept) Advertising Requirement: Yes No (Enter Acct No.) Ex: General Fund- (Enter X in box) X Police Contract/P.O.Required: Yes No RFP/RFQ/Bid#: (EnterX in box) N/A Strategic Plan Related Yes No Strategic Plan Priority Area: Strategic Plan Obj./Strategy: (list the (EnterXin box) specific objective/strategy this item will address) Enhance Organizational El Bus.&Economic Dev E] Public Safety Cl Quality of Education (l Qual.of Life&City Image Communcation l] Sponsor Name Myra Taylor, Mayor Department: City Commission Short Title: • A RESOLUTION OF THE CITY OF OPA-LOCKA, FLORIDA CONCERNING AMENDMENT 4 TO THE FLORIDA CONSTITUTION WHICH, IS ADOPTED, WOULD CREATE ADDITIONAL INEQUITIES IN FLORIDA'S TAX SYSTEM BY GRANTING CERTAIN TAX BREAKS TO SOME TAXPAYERS AT THE EXPENSE OF OTHER TAXPAYERS Staff Summary: Amendment 4 proposes three significant changes to the tax system: 1. The assessment of homestead and specified non-homestead property may not increase if the just value of that property is less that the just value of the property on the preceding January 1. 2. It reduces from 10 to 5 percent the limitation on annual changes in assessments of non-homestead real property. 3. Provides an additional homestead exemption equal to 50% of the just value of the property to persons who have not owned property in the previous three calendar years to which a Florida homestead exemption was applied. This exemption is reduced by 20% annually over the next five years and is not available in the sixth year after it is received. Proposed Action. Approval (1) Facts About Amendment 4 (2) Fiscal Impact report from Miami Dade County t 6 IK 812A tgn, egalract r�l LU.4 n;tom Memorandum TO: Mayor Myra L. Taylor Vice-Mayor Dorothy Johnson � Commissioner Ti r othy H' 11 s Commissioner Ga Miller Commissioner Ros Tyd FROM: Kelvin Baker, Sr. , City Manag DATE: September 19, 2012 RE: Resolution: Amendment 4 Request: A RESOLUTION OF THE CITY OF OPA-LOCKA, FLORIDA CONCERNING AMENDMENT 4 TO THE FLORIDA CONSTITUTION WHICH, IS ADOPTED, WOULD CREATE ADDITIONAL INEQUITIES IN FLORIDA'S TAX SYSTEM BY GRANTING CERTAIN TAX BREAKS TO SOME TAXPAYERS AT THE EXPENSE OF OTHER TAXPAYERS Description: Amendment 4 proposes three significant changes to the tax system: 1. The assessment of homestead and specified non-homestead property may not increase if the just value of that property is less that the just value of the property on the preceding January 1. 2. It reduces from 10 to 5 percent the limitation on annual changes in assessments of non- homestead real property. 3. Provides an additional homestead exemption equal to 50% of the just value of the property to persons who have not owned property in the previous three calendar years to which a Florida homestead exemption was applied. This exemption is reduced by 20% annually over the next five years and is not available in the sixth year after it is received. Financial Impact: Attached is a report prepared by the Miami Dade County Property Appraiser's Office that shows the impact of#2 above, the 5% cap on non-homestead property using 2010 values. The report shows the fiscal impact of the legislation on the City would be $11,385. Implementation Timeline: Immediately Legislative History: None Recommendation(s): Staff recommends approval. Attachments: (1) Facts About Amendment 4 (2) Fiscal Impact report from Miami Dade County PREPARED BY: City Manager AMENDMENT 4 RESOLUTION SAMPLE A RESOLUTION OF THE CITY/TOWN/VILLAGE OF CONCERNING AMENDMENT 4 TO THE FLORIDA CONSTITUTION WHICH, IF ADOPTED, WOULD CREATE ADDITIONAL INEQUITIES IN FLORIDA'S TAX SYSTEM BY GRANTING CERTAIN TAX BREAKS TO SOME TAXPAYERS AT THE EXPENSE OF OTHER TAXPAYERS. WHEREAS, a proposed constitutional amendment sponsored by the Florida Legislature will be placed on the 2012 general election ballot as"Amendment 4"; and WHEREAS, this proposed constitutional change reduces the current assessment limitation on non-homestead real property from 10 percent to 5 percent; and WHEREAS, the proposed amendment grants first-time homesteaders an additional homestead exemption equal to 50 percent of the just value of the property up to the county median home value; and WHEREAS, the proposed amendment creates a provision that allows the Legislature by general law to prohibit increases in the assessed value of homestead property if the just value of the property decreases; and WHEREAS, Amendment 4 creates inequities for non-homestead properties by allowing identical properties to be taxed differently, and Amendment 4 extends the sunset provision already in the Florida Constitution from 2019 to 2023, which allows these inequities to be in place longer; and WHEREAS, Amendment 4 shifts the tax burden to new or growing businesses, creating an unfair disadvantage for new businesses that would have to pay higher property taxes than their more established counterparts; and WHEREAS, the non-homestead assessment cap reduction and the first-time homesteader provision apply to city and county taxes and not to school property taxes; and WHEREAS, over the last few years, several property tax initiatives, including additional homestead exemptions, Save Our Homes portability and statutory millage caps, have also contributed to the unequal treatment of Florida's taxpayers. WHEREAS, there are estimates of the total tax impact of Amendment 4 of$1.6 billion cumulatively over a four-year period beginning in 2013-2014, with approximately $447 million borne by cities; NOW, THEREFORE, BE IT RESOLVED BY THE CITY/TOWN/VILLAGE OF Section 1. That the City/Town/Village of will evaluate the impact Amendment 4 may have on its property taxes. Section 2. That the City/Town/Village of urges its residents to carefully consider the potential adverse consequences of Amendment 4 before voting in the November 2012 general election. Section 3. That a copy of this resolution be provided to the Florida League of Cities, Inc. and other interested parties. PASSED AND ADOPTED by the City/Town/Village of , Florida, this day of 2012. 5%Non-Homestead Cap Reduction to Fiscal Municipality Count 2030 Assessed 2010 Taxable Millage New Assessed New Taxable Taxable Impact 01 Miami 69,731 28,789,886,826 22,030,908,257 7.6740 28,768,897,245 22,013,914,913 16,993,344 130,407 02 Miami Beach 36,034 16,933,093,882 15,296,502,806 6.2155 16,863,379,737 15,268,576,666 27,926,140 173,575 03 Coral Gables 7,687 6,300,067,834 5,271,627,699 6.0720 6,294,018,147 5,265,762,210 5,865,489 35,615 04 Hialeah 19,787 6,010,762,304 5,036,559,778 6.5400 5,999,655,306 5,026,889,798 9,669,980 63,242 05 Miami Springs 1,031 483,218,899 383,352,369 6.4710 482,876,186 383,128,628 223,741 1,448 06 North Miami 6,336 1,646,540,119 1,310,607,319 8.1955 1,645,532,829 1,309,600,029 1,007,290 8,255 07 North Miami Beach 5,292 1,311,524,861 1,093,652,190 6.6036 1,311,096,175 1,093,296,607 355,583 2,348 08 Opa-locka 2,487 809,559,204 621,683,306 8.8000 807,632,543 620,389,593 1,293,713 11,385 09 South Miami 1,968 1,065,127,247 833,228,271 4.9526 1,064,494,714 832,702,068 526,203 2,606 10 Homestead 12,396 1,857,265,882 1,413,619,677 6.2917 1,856,380,634 1,412,788,035 831,642 5,232 11 Miami Shores 771 333,376,138 193,395,422 8.0000 333,364,340 193,394,612 810 6 12 Bal Harbour 2,250 1,708,725,677 1,696,685,446 2.5567 1,706,465,192 1,694,424,961 2,260,485 5,779 13 Bay Harbor Islands 1,216 365,820,166 330,716,098 5.2971 365,681,837 330,577,769 138,329 733 14 Surfside 1,899 704,546,982 672,366,194 5.6030 704,414,028 672,293,643 72,551 407 15 West Miami 482 181,896,071 171,693,665 6.8858 181,539,820 171,374,200 319,465 2,200 16 Florida City 1,946 493,011,093 398,923,128 7.7500 492,608,387 398,591,510 331,618 2,570 17 Biscayne Park 243 41,261,873 37,094,776 8.9933 41,226,614 37,059,517 35,259 317 18 El Portal 154 38,080,903 34,979,799 7.9000 38,077,123 34,976,019 3,780 30 19 Golden Beach 144 260,142,843 245,065,801 7.0140 260,136,343 245,065,801 0 0 20 Pinecrest 1,447 1,271,334,983 1,066,072,524 2.1040 1,269,562,130 1,064,920,040 1,152,484 2,425 21 Indian Creek 27 160,565,018 159,345,130 1.8038 160,565,018 159,345,130 0 0 22 Medley 1,052 1,614,925,597 1,575,830,198 5.6500 1,613,327,594 1,574,388,810 1,441,388 8,144 23 North Bay Village 2,360 491,863,728 482,852,307 4.7772 491,516,128 482,504,707 347,600 1,661 24 Key Biscayne 4,080 3,393,457,814 3,277,390,376 3.2000 3,389,365,122 3,273,555,092 3,835,284 12,273 25 Sweetwater 1,015 223,237,757 208,539,550 4.6618 222,729,177 208,068,752 470,798 2,195 26 Virginia Gardens 223 123,048,185 109,476,190 5.7485 123,045,056 109,473,061 3,129 18 27 Hialeah Gardens 2,070 697,947,351 616,517,904 5.4600 697,923,563 616,495,004 22,900 125 28 Aventura 13,681 5,141,217,400 5,035,039,178 1.7261 5,136,634,712 5,030,496,713 4,542,465 7,841 29 Islandia 437 9,534,188 99,295 0.0000 9,530,170 99,295 0 0 30 Uninc.County 139,032 37,376,222,388 29,837,490,330 2.2980 37,335,892,349 29,806,606,515 30,883,815 70,971 31 Sunny Isles Beach 12,570 3,968,706,359 3,905,043,730 2.8860 3,968,530,728 3,904,872,185 171,545 495 32 Miami Lakes 2,696 1,515,584,374 1,294,722,959 2.3702 1,514,155,421 1,293,294,006 1,428,953 3,387 33 Palmetto Bay 1,890 997,020,291 754,732,827 2.4470 996,848,318 754,582,062 150,765 369 34 Miami Gardens 8,811 2,741,742,313 2,267,708,852 5.7141 2,740,481,198 2,266,463,693 1,245,159 7,115 35 Doral 12,521 7,514,231,141 6,772,408,689 2.4470 7,505,201,914 6,763,506,340 8,902,349 21,784 36 Cutler Bay 4,699 1,047,006,527 846,720,848 2.5888 1,046,276,850 845,992,352 728,496 1,886 b ide 13' A153U1*. - - ', -S :r Z It 115,1 Fire-Rescue 243,146 76,194,285,558 64,370,011,084 2.5753 76,123,747,091 64,310,771,657 58,892,315 151,665 Library 342,914 125,540,257,971 104,949,017,553 0.2840 125,372,852,941 104,838,992,917 109,677,524 31,148 SFWMD 380,465 137,621,554,218 115,282,652,888 0.6240 137,439,062,648 115,159,470,336 123,182,552 76,866 FIND 380,465 137,621,554,218 115,282,652,888 0.0345 137,439,062,648 115,159,470,336 123,182,552 4,250 The Children's Trust 380,465 137,621,554,218 115,282,652,888 0.5000 137,439,062,648 115,159,470,336 123,182,552 61,591 Know the Facts About AMENDMENT 4 Amendment 4 is one of many state constitutional amendments that will appear on the November 2012 General Election ballot. What the Amendment Does. The official ballot summary is lengthy and has several significant components that: ✓ Reduce the current assessment limitation on commercial property, vacant property and second homes. ✓ Give first-time home buyers an additional homestead exemption. ✓ Allow the Legislature to prohibit increases in the assessed value of homestead property if the just value of the property decreases. ✓ Apply the assessment cap reduction and the first-time home buyer provisions to city and county taxes, not to school property taxes. AMENDMENT 4 Unfair. Unbalanced. Unworkable. To learn more, visit http://www.floridaleagueofcities.com/News.aspx?CNID=9072 Paid for by the Florida League of Cities. 301 South Bronough Street,Suite 300,Tallahassee,FL 32301 BACKGROUND ISTOCKPHOTOCOM/FRANCESCO ROSSETTI The Facts About AMENDMENT 4 Amendment 4 takes a complicated property tax system and makes it worse! It shifts Florida's property tax burden onto new and growing businesses and Florida residents while providing special benefits to out-of-state and non-homestead property owners. Hurts new jobs and growing businesses. Amendment 4 puts new and growing businesses at a disadvantage by making them pay higher taxes than paid by established businesses. This measure will stymie business expansion of Florida-based businesses and discourage new businesses from locating to Florida. Makes our complicated property tax system even worse. Florida's property tax system is already complex. Numerous changes have been made over the years, which makes it difficult to understand. Amendment 4 just adds to the confusion. Is unfair to Florida (homestead) residents. Amendment 4 favors out-of-state, second home property owners and owners of large tracts of vacant land and shifts the cost of paying for public services to long-time Florida residents. This measure creates an unfair "us-versus-them" tax system that hurts those who live and work here. Is unbalanced because identical properties will pay different taxes. Amendment 4 takes an already unfair and unbalanced tax system and makes it even worse by providing special benefits for out-of-state and second home property owners. Amendment 4 will allow identical properties to be taxed differently. It allows this inequity to be in place until 2023. It will impact cities' major revenue source. By providing special tax benefits to out-of-state and second property owners, local governments will see its major source of revenue negatively impacted again. Property taxes are used to fund basic services such as police protection, fire protection, parks and recreation, and other public services citizens depend on. Am EN.D on ENT 4 Unfair. Unbalanced. Unworkable. Paid for by the Florida League of Cities. 301 South Bronough Street,Suite 300.Tallahassee,FL 32301 svc" of Q , : MEMORANDUM To: Florida Mayors From: John Charles Thomas, Director, Communications and Political Initiatives Date: September 5, 2012 Re: Amendment 4 Communications Effort The Florida Legislature has sponsored five constitutional amendments dealing with property taxes that will appear on the 2012 general election ballot. One of the amendments, Amendment 4, makes several significant changes to the state's property tax system. The amendment changes the current assessment limit on commercial property, vacant property and second homes; gives first-time home buyers an additional homestead exemption; and allows the Legislature to prohibit increases in the assessed value of a property if the just value of the property decreases. In August 2011, the Florida League of Cities adopted a resolution at its annual conference opposing Amendment 4. As election day nears, it is important that cities and their citizens learn more about this proposed constitutional amendment and the impact it may have on their city if it is adopted. This tool kit is a "how to" guide designed to provide city officials with key messages about Amendment 4 and includes some basic steps your city can take to communicate with your residents. As always, you should tailor the plan to fit your particular city. One size does not fit all, so be sure to use as much — or as little—of the attached plan as you would like. We believe the messages provided are messages that will clearly communicate the impact of Amendment 4. Again, feel free to tailor them in ways that will best communicate with your city's residents. If you have any questions, please feel free to contact me at jthomas @flcities.com or 1-(800) 342-81 12. 301 South Bronough Street•Suite 300•P.O.Box 1757•Tallahassee,FL 32302-1757•(850)222-9684•Fax(850)222-3806•wrw.flcities.com Initiative information rage i or z ' 011 Florida Department of State Division of Elections PROPERTY TAX LIMITATIONS; PROPERTY VALUE DECLINE; REDUCTION FOR NONHOMESTEAD ASSESSMENT INCREASES; DELAY OF SCHEDULED REPEAL Reference: ARTICLE VII, SECTIONS 4, 6 & ARTICLE XII, SECTIONS 27, 32, 33 Summary: View Full Text(pdf) (1) This would amend Florida Constitution Article VII, Section 4 (Taxation; assessments) and Section 6 (Homestead exemptions). It also would amend Article XII, Section 27, and add Sections 32 and 33, relating to the Schedule for the amendments. (2) In certain circumstances, the law requires the assessed value of homestead and specified nonhomestead property to increase when the just value of the property decreases. Therefore, this amendment provides that the Legislature may, by general law, provide that the assessment of homestead and specified non homestead property may not increase if the just value of that property is less than the just value of the property on the preceding January 1, subject to any adjustment in the assessed value due to changes, additions, reductions, or improvements to such property which are assessed as provided for by general law. This amendment takes effect upon approval by the voters. If approved at a special election held on the date of the 2012 presidential preference primary, it shall operate retroactively to January 1, 2012, or, if approved at the 2012 general election, shall take effect January 1, 2013. (3) This amendment reduces from 10 percent to 5 percent the limitation on annual changes in assessments of nonhomestead real property. This amendment takes effect upon approval of the voters. If approved at a special election held on the date of the 2012 presidential preference primary, it shall operate retroactively to January 1, 2012, or, if approved at the 2012 general election, takes effect January 1, 2013. (4) This amendment also authorizes general law to provide, subject to conditions specified in such law, an additional homestead exemption to every person who establishes the right to receive the homestead exemption provided in the Florida Constitution within 1 year after purchasing the homestead property and who has not owned property in the previous 3 calendar years to which the Florida homestead exemption applied. The additional homestead exemption shall apply to all levies except school district levies. The additional exemption is an amount equal to 50 percent of the homestead property's just value on January 1 of the year the homestead is established. The additional homestead exemption may not exceed an amount equal to the median just value of all homestead property within the county where the property at issue is located for the calendar year immediately preceding January 1 of the year the homestead is established. The additional exemption shall apply for the shorter of 5 years or the year of sale of the property. The amount of the additional exemption shall be reduced in each subsequent year by an amount equal to 20 percent of the amount of the additional exemption received in the year the homestead was established or by an amount equal to the difference between the just value of the property and the assessed value of the property determined under Article VII, Section 4(d), whichever is greater. Not more than one such exemption shall be allowed per homestead property at one time. The additional exemption applies to property purchased on or after January 1, 2011, if approved by the voters at a special election held on the date of the 2012 presidential preference primary, or to property purchased on or after January 1, 2012, if approved by the voters at the 2012 general election. The additional exemption is not available in the sixth and subsequent years after it is first received. The amendment shall take effect upon approval by the voters. If approved at a special election held on the date of the 2012 presidential preference primary, it shall operate retroactively to January 1, 2012, or, if approved at the 2012 general election, takes effect January 1, 2013. (5) This amendment also delays until 2023, the repeal, currently scheduled to take effect in 2019, of constitutional amendments adopted in 2008 which limit annual assessment increases for specified nonhomestead real property. This amendment delays until 2022 the submission of an amendment proposing the abrogation of such repeal to the voters. http://election.dos.state.fl.us/initiatives/initdetail.asp?account=l0&segnum=80 9/19/2012 Initiative Information rage z ui L Related Links: http://www.myfloridahouse.cov/ Track Bill: CS/HJR 381 Sponsor: The Florida Legislature Status: Active Made Ballot: 06/21/2011 Ballot Number: 4 Election Year: 2012 &a Adobe' Reader' http://election.dos.state.fl.us/initiatives/initdetail.asp?account=l0&segnum=80 9/19/2012