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HomeMy WebLinkAboutIR 9032INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9032 Each year, the City of Fort Worth and the State of Texas allow approximately 18 percent of the total assessed value of property in Fort Worth to be fully or partially exempted from the property tax. Exemptions fall into a number of categories, some of which are controllable by the City Council, provided the policy is changed prior to May 1 of each year. Each exemption listed below (except for the Historic Sites Exemption) is currently at its maximum legal level, and may only be decreased by the City Council. However, doing so would equate to an increase in taxes for individuals who qualify for those exemptions. In March 2007, the City Council adopted a Senior /Disabled Tax Freeze, which will freeze the tax bill of eligible citizens at their 2008 levels. Any modification of the following exemptions will not affect those individuals as long as they qualify for the exemption in their current residence. The City Council has the option on an annual basis, if changed prior to May 1, to modify the following exemptions: General Residence Homestead Exemption: An exemption of not less than $5,000 and not to exceed 20 percent of the appraised value. This exemption is currently at its maximum value of 20% and may only be decreased. 2. Senior Citizen Homestead Exemption: This is in addition to the General Residence Homestead Exemption for owners who are aged 65 and older, or their surviving spouses. This exemption is currently at its maximum value of $40,000.00 and may only be decreased. 3. Disabled Homestead Exemption: This exempts a certain amount of homestead value for property owners who are 100 percent disabled and unable to work due to their disability, as determined by Social Security standards and confirmed by a physician. At $40,000.00, this exemption is also at its maximum value and may only be decreased. 4. Historic Sites Exemption: This exempts part or all of the assessed value of property designated by the Texas Historical Commission or local governing body as an exempt historical site. The practice in Fort Worth has been to exempt the increase in value resulting from renovation or preservation of a historical site, with each case presented to the City Council on an individual basis. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9032 The amount of Current Property Tax Revenue that the City expects to collect in FY2008 -09, after exemptions, is presented in the attached table. The total value of property exempted from Property Taxes is $7.42 billion which includes Deferred Special Use Value Loss and Partial Exemption Value Loss. Staff recommends no change to these property tax exemptions. If you have any questions, contact Horatio Porter, Budget Officer at 817 - 392.2379. Qale A. Fissele , E. City Manager Attachment ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS Calculations of Current Property Tax Revenue from Total Appraised Value FYOO FY09 $Change from Previous %Change, from Previous Jul Certified July Certified Certified N Certified Year _y_- — I I I I 1 Less Deferred Special Use Value Loss Agricultural $ 558,700,165 $ 621,992,684 $ 63,292.519 11,33% Scenic Land $ 6,337,400 $ 6,102,692 $ (234,708) -170% Partial Exemption Value Loss Disabled Veteran $ 35,316,751 $ 35,699,397 $ 382,636 IM% Over-65 $ 955,861,537 $ 983,283,850 $ 27,422,313 2.87% Homestead $ 3,051,652,461 $ 3273,462,012 $ 221,809,551 7-27% Disabled Person $ 97,825,705 $ 110,383,288 $ I2,557,583 12,84% Freeport Inventory $ 2,207,238,954 $ 1,628,268,935 $ (578,970,019) -26,23% SolarANInd $ 13,886 $ 13,888 $ OM% Pollution Control $ 11,350,260 $ 9,562,341 $ (1,787,919) -15.75% Foreign Trade Zone $ 441,970,198 $ 118,662,327 $ (323,307,871) -73,15% Historic Site $ 84,857,586 $ 50,141,383 $ (34,716,203) -40,91% Prorated Absolute $ 18,187,518 $ 49,320,272 $ 31,132,754 171-18% Commercial Housing Development $ 140,867,612 $ 122,585,364 $ (18,282248) -12M% Abatement Value Loss $ 275,011,839 $ 403,432,834 $ 128,420,995 46,70% Nominal Personal Property $ 104,187 $ 249,409 $ 145,222 139.39% Freeze Taxable $ 3,681,145 $ 3,681,145 Transfer Adjustments $ (12,828) $ (12,828) Sub- TAgL Exemptions $ 7,885,296,059 $ 7,416,854,637 $ (468,441,422) -5.94% Not Taxable Value 36,428,214,376 $ 38,064,308,386 $ 11,630,094,0110 4.49% + Minimum value of Protested Values $ 817,143,027 $ 1,966,406,625 $ 1,149,263,598 140.64% Incomplete Properties $ 381,239,796 $ 836,194,234 $ 454,954438 119.34% Adjusted Not Valu a $ 37,626,597,199 $ 40,866,909,245 $ 3,240,312,046 8.61% Total Levy $ 321,707,406 $ 349,412,074 $ 27,704,668 8,61% Tax Rate per $100 of Value 0.855 0,855 Lost Estimated Levy Adl ustments 0,22% 0,22% Adjusted Levy $ 320,999,660 $ 348,643,367 $ 27,643,718 8,61% Less Collection Rate 99% 99% Collection of Levy $ 317,789,653 $ 345,156,934 $ 27,367,281 8,61% Less Estimated Refunds $ 2,250,000 $ 2,250,000 Budgeted Revenues $ 315,639,653 $ 342,906,934 $ 27,367,281 8.67% Revenue Allocations Debt Service $ 49,489, 904 $ 57,792,853 $ 8,302,949 16,78% Gas Well Restricted $ - $ 1,514,291 $ 1,514,291 Gerwal Fund $ 2MO49,750 $ 283p ;90 $ 17,550,040 640%