HomeMy WebLinkAboutIR 7597 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7597
April 7, 1992
cTo To the Mayor and Members of the City Council
Subject: AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
State laws governing property tax administration provide for certain exemptions
which may either partially or totally exempt real or personal property from
taxation. Some exemptions require only that property meet certain criteria
before the appraisal district may grant the property owner's application for
exemption. Other exemptions require specific action by the taxing authority
before the exemption may be requested by the property owner. Those
exemptions currently being claimed by Fort Worth property owners and over
which the City Council exercises no discretionary power are: .AGRICULTURE
EXEMPTION, FREEPORT EXEMPTION, DISABLED VETERANS EXEMPTION,
SCENIC LAND EXEMPTION, and SOLAR AND WIND POWERED ENERGY
DEVICES EXEMPTION.
The City Council has the option, on an annual basis, to increase or decrease
certain exemptions presently being claimed by property owners in Fort Worth.
These "local option" exemptions include:
1. GENERAL RESIDENCE HOMESTEAD EXEMPTION - exemption of
not less than $5,000 and not to exceed 204!0 of appraised value (will
remain at current level of 20% for Fort Worth citizens unless other
action is taken by City Council prior to May 1).
2. SENIOR CITIZEN HOMESTEAD EXEMPTION - in addition to the
General Residence Homestead Exemption for the 65 or older
property owner, an exemption of $3,000 of appraised value or
larger, if larger amount is established by the governing body or by
voters (will remain at current level of $40,000 unless revoked or
increased by City Council).
3. DISABLED HOMESTEAD EXEMPTION - exempts not less than
$3,000 of assessed value for the homestead of disabled property
owners, who are 100% disabled and unable to work due to their
disability as determined by Social Security standards and
confirmed by a physician (increased by City Council from $20,000
to current $40,000 for 1991 tax year and will remain at this level
unless amended by the City Council prior to May 1).
4. HISTORIC SITES EXEMPTION - exemption of part or all of
assessed value of property designated by the Texas Historical
Commission or local governing body as an exempt historical site.
(Practice by Fort Worth City Council has been to exempt increase
in value resulting from renovation or preservation of a designated
historical site - each site is presented to Council on an individual
basis.)
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7597
April 7, 1992
` TO To the Mayor and Members of the City Council Page 2 of 3
Subject: AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
A comparison of various tax exemptions in selected Texas cities is outlined
below:
RESIDENCE HOMESTEAD EXEMPTIONS
FREEPORT
QE SR, CITIZENS DISABLED EXEMPTION
Arlington 20% $50,000 $50,000 no
Austin None $51,000 $51,000 no
Dallas 20% $64,000 $64,000 no
El Paso None $15,000 $15,000 yes
Fort Worth 20016 $40,000 $40,000 yes
Houston 200/6 $32,340 $32,340 no
San Antonio None $60,000 None yes
The average value of a single-family residence in Fort Worth is $52,817 for the
1991 tax year. Assuming the 1991 tax rate of$0.9271/$100 value, the impact
the various optional exemptions have on property with an average value, as
well as property of greater and lesser values, is listed below:
1991 City Taxes on a House with a Value of-
Exemption ption $52,817 $25,000 $75,000
No exemption $489.67 $231.78 $695.32
General Homestead 391.73 185.42 556.26
Sr. Citizen w/Gen. Homestead 20.89 0.00 185.42
Disabled Homestead * 20.89 0.00 185.42
*Homeowner cannot claim both Senior Citizen and Disabled exemption.
The amounts of assessed value and tax revenue lost due to exemptions and
abatements (i.e. tax liability abated for economic development purposes by
specific contract between property owner and City) are presented on the
following tables:
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CRY COUNCIL MEMBERS NQ. 7597
April 7, 1992
To the Mayor and Members of the City Council Page 3 of 3
Subject: AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
Assessed VWue Lost IQ Exemptions
FY 1990-91 FY 1991-92
Total Assessed Value $17,462,547,000 $17,385,576,000
Value Lost to Exemptions:
General Residence Homestead 931,300,000 964,220,000
Senior Citizen Homestead 793,783,000 804,945,000
Agriculture 537.981,000 506,415,000
Freeport Goods 432,330,000 498.962,000
Disabled Residence Homestead 25,936,000 43,908,000
Scenic land 19,431,000 19,775,000
Disabled Veterans 5.713,000 5,615.000
Historic Sites 839,000 1.408,000
Solar&Wind Powered Energy Devices 14.000 14,000
Abatements 0 5,922,000
Total Value Lost 2,747,327,000 2,851,184,000
Net Assessed Value $14,715,220,000 $14,534,392,000
Estimated Rgvenue L&st to Exemptions
EX 1920-91 Ey 1991-22
General Residence Homesteads $8,121,000 $8,939,000
Senior Citizen Homesteads 6,922.000 7,463,000
Agriculture 4,691,000 4,695,000
Freeport Goods 3,770,000 4,626,(X30
Disabled Residence Homesteads 226,000 407,000
Scenic Land 169.000 183,000
Disabled Veterans 50,000 52,000
Historic Sites* 7,000 13,000
Solar&Wind Powered Energy Devices -0- -0-
Abatements -0- 55,000
Total Revenue Lost $23,956,000 $26.433,000
s Discretionary
The last day the City Council may change the various local option homestead
exemptions in order to impact the 1992-93 budget is April 30, 1992. Staff is
available to provide additional information if the Council should require it.
Property owners have until April 30th to apply for the various property tax
exemptions currently offered by the City for the 1992 tax year.
-OkW41I.- a_. Gm�
4 h Bob Terrell
Interim City Manager
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS