HomeMy WebLinkAbout2021/03/23-Attachments-M&C 21-0195City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 03/23/21 M&C FILE NUMBER: M&C 21-0195
LOG NAME: 062315 MISTLETOE AVE. HSTE - CORRECTION
SUBJECT
(CD 9) Amend Mayor and Council Communication 20-0474 to Accurately Reflect the 2017 Land, Improvement/Structure, Property, and
Homestead Exemption Values for 2315 Mistletoe Avenue for the Purpose of Correctly Calculating its Historic Site Tax Exemption
RECOMMENDATION:
It is recommended that the City Council amend Mayor and Council Communication 20-0474 to accurately reflect the 2017 property values for 2315
Mistletoe Avenue for the purpose of correctly calculating its historic site tax exemption to the following:
1. Land Value = $187,500.00
2. Improvement/Structure Value = $248,650.00
3. Homestead Exemption = $87,230.00
4. Base Year Taxable Value = $348,920.00
DISCUSSION:
On August 4, 2020, the City Council approved Mayor and Council Communication (M&C) 20-0474, verifying the completion of the rehabilitation
project for the Historic & Cultural Landmark property at 2315 Mistletoe Avenue (Property). This M&C is being put forward to correct the base year
taxable value for the Property. During the annual review and notification process implemented after the 2018 audit of the Historic Site Tax
Exemption program, staff noticed that the land and improvement/structure property values approved by Council did not match the 2017 appraised
value of the property according to the Tarrant Appraisal District's data because the property had a Homestead Exemption that year. Thus, the
correct base year taxable value should be $348,920.00 (not $436,150.00 as reflected in the original M&C).
The Property is entitled to an exemption from city ad valorem taxes of (i) all of the assessed value of the structure and (ii) any increase in the
assessed value of the land necessary for access to and use of the structure, in excess of the value for the tax year immediately prior to
commencement of the rehabilitation. The term of this tax exemption is ten years, commencing on the first day of the tax year following the City
Council's initial verification that the rehabilitation project was complete. The Council verified the completion of the project on August 4, 2020. Thus,
this tax exemption began on January 1, 2021.
By approval of this M&C, the chart in M&C 20-0474 is amended to read as follows:
Improvement
Base -Year
HCLC
City
Location
Taxing
Land
(Structure)
Homestead
Taxable
Required
Total
Initial
Council
HCLC
Year*
Value
Exemption
Expenditure
Expended
Initial
Verification
Value
Value
Approval
Approval
2315 Mistletoe
Ave.
F1]7-E,50:0.O]OK48,650.00EY$348,920.00E,595.00
$363,718.00HH
6/8/20
*The taxing year refers to the tax year immediately prior to the commencement of rehabilitation.
This property is located in COUNCIL DISTRICT 9.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon final approval of the Historic Tax Exemption -Verification application, a loss of an estimated $21,750.00
in property tax revenue may occur over the next ten years of the tax abatement period. This reduction in revenue will be incorporated into the long
term financial forecast because the Historic Tax Exemption has already been officially granted.
Submitted for City Manager's Office by. Dana Burghdoff 8018
Originating Business Unit Head: D.J. Harrell 8032
Additional Information Contact: Justin Newhart 8037