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TO THROUGH: FROM DATE Members of the Board of Commissioners Joseph A. Baird Assistant County Administrator Jason E. Brown Budget Manager i March 21, 2001 SUBJECT: Report on the Impact of "Save Our Seniors" Additional Homestead Exemption for Persons 65 and Older Background & Description The State legislature enacted Chapter 99-341, Laws of Florida, effective July 1, 1999, which created section 196.075, Florida Statutes. This law grants counties and municipalities the authority to approve an additional homestead exemption of up to $25,000 for homeowners over age 65 who meet certain income requirements. In order to receive the exemption, the homeowners must be eligible for the regular homestead exemption and must have an annual household income which does not exceed $20.000 for the prior year. The statute defines household income as the adjusted gross income reported on line 33 of IRS form 1040. On January 9, 2001, the Board of Commissioners directed staff to research the additional exemption. Staff has contacted the Office of Economic and Demographic Research (EDR) of the Department of Revenue regarding their estimates for Indian River County. The EDR provided a list of other governments that have implemented the additional exemption. This list also includes the number of actual exemptions filed in each county. According to the EDR, actual filings have been substantially less than their original estimates. Since there has been such a significant difference between the EDR projections and actual experience, staff has developed an independent estimate of the impact implementing "Save Our Seniors" would have on Indian River County. Staff used information from EDR and other available local demographics in preparing this estimate. A comprehensive analysis of the "Save Our Seniors" exemption is presented in the attached report for review by the Board of Commissioners. "Save Our Seniors" Additional Homestead Exemption Analysis of Impact on Indian River County Table 1 = Estimate of Impact on Ad Valorem Taxes Based on Current Millage Rates and Lost Taxable Value Estimated Est. Impact FY 2000/01 Taxable on Ad Valorem Find Millaae Rate Val a Lo 5 Taxes General Fund 4.1014 $45,462,500 $186,460 M.S.T.U. Fund 1.4394 $25,551,654 $369779 Emergency Services District 2 4913 $38 370 348 $95 592 Aggregate 7.0131 $45,462,500 $318,831 Land Acq Bond 0.2165 (Zdr Bao) Gnn &^ ^ A. All Taxing Funds N/A Note: See Assumptions Section at end of report. $459462,500 $328,674 APRIL 10, 2001BK I I � FIG 864 -69-