HomeMy WebLinkAboutIR 7985 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7985
To the Mayor and Members of the City Council March 14, 1996
X Subject:
7873 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,
SOLAR AND WIND POWERED ENERGY DEVICES EXEMPTION, AND POLLUTION
CONTROL 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 20�% 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 aged 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 owner, who are 100% disabled and
unable to work due to their disability as determined by Social Security standards and
confirmed by a physician (will remain at current level of$40,000 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)..
OFFICIAL RECORD
CilY SECRETARY
FT. WORTH,, TEX.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COLINCIL MEMBERS No. 7QAr,
To the Mayor and Members of the City Council
March 14, 1996
Page 2 of 4
���CS_ _)),
NX0.1 Subject:
Ian AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
5. TRANSITIONAL HOUSING FOR INDIGENT PERSONS - exempts residential
property owned by the United States or an agency of the United States and used to
provide transitional housing for the indigent under a program operated or directed by
the U.S. Department of Housing and Urban Development. (The Community
Enrichment Center and Women's Haven of Tarrant County are non-profit
corporations in Tarrant County currently cooperating with HUD to provide a
comprehensive transitional housing program for Tarrant County homeless families,
have leased 48 properties from HUD in 1995 that are in Fort Worth. The City
Council has approved this exemption for 1995. The estimated tax revenue loss for
the FY1995-96 budget is $22,912.00).
A comparison of various tax exemptions in selected Texas cities is outlined below:
RESIDENCE HOMESTEAD EXEMPTIONS
FREEPORT TRANSITIONAL
GENERAL SR.CITIZENS DISABLED EXEMPTION HOUSING
Arlington 20% $50,000 $50,000 No Yes
Austin None $51,000 $51,000 Yes No
Dallas 20% $64,000 $64,000 Yes No
El Paso None $15,000 $15,000 Yes No
Fort Worth 20% $40,000 $40,000 Yes Yes
Houston 20% $32,340 $32,340 No No
San Antonio None $60,000 None Yes Yes
The average value of a single-family residence in Fort Worth is $51,985 for the 1995 tax
year. Since the 1995 tax rate is $0.9635/$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:
1995 City Taxes on a House with a Value of:
Exemption $51,985 $30,000 $80,000
No Exemption $500.88 $289.05 $770.80
General Homestead 400.70 231.24 616.64
Sr.Citizen w/Gen. Homestead 15.30 0.00 231.24
Disabled Homestead* 15.30 0.00 231.24
Indigent Housing 0.00 0.00 0.00
*Homeowner cannot claim both Senior Citizen and Disabled exemption.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7985
e t��T�FQ To the Mayor and Members of the City Council
March 14, 1996
v Page 3 of 4
* :�� * Subject:
AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
The amounts of assessed value and tax revenue lost due to exemptions are presented on the
following tables:
ASSESSED VALUE LOST TO EXEMPTIONS
FY 1994-95 FY 1995-96
Total Assessed Value $15,173,852,000 $16,594,714,000
Value Lost to Exemptions:
General Residence Homestead 961,950,000 1,037,982,000
Senior Citizen Homestead 740,731,000 764,299,000
Agriculture 215,498,000 189,244,000
Freeport Goods 634,101,000 861,229,000
Disabled Residence Homestead 51,790,000 55,769,000
Scenic Land 16,621,000 1,989,000
Disabled Veterans 7,921,000 8,091,000
Historic Sites 1,024,000 2,964,000
Solar/Wind Energy Devices 14,000 14,000
Abatements 53,948,000 84,000,000
Indigent Housing 2,045,000 2,378,000
Pollution Control Devices -0- 1,076,000
Total Value Lost to Exemptions 2,685,643,000 3,009,035,000
Net Assessed Value (as of Sept.) $12,488,209,000 $13,585,679,000
ESTIMATED REVENUE LOST TO EXEMPTIONS
FY 1994-95 FY 1995-96
General Residence Homestead* $9,364,583 $10,000,957
Senior Citizen Homestead* 7,211,016 7,364,021
Agriculture 2,097,873 1,823,366
Freeport Goods 6,172,973 8,297,941
Disabled Residence Homestead* 504,176 537,334
Scenic Land 161,805 19,164
Disabled Veterans 77,111 77,957
Historic Sites* 9,969 28,558
Solar/Wind Energy Devices -0- -0-
Abatements* 525,184 809,340
Indigent Housing* 19,908 22,912
Pollution Control Devices -0- 10,367
Total Revenue Lost to Exemptions $26,144,598 $28,991,917
*Discretionary � �
, qq
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7985
To the Mayor and Members of the City Council March 14, 1996
Page 4 of 4
C X ). Subject:
AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
The last day the City Council may change the various local option homestead exemptions in
order to impact the FY 1996-97 budget is April 30, 1996. Staff is available to provide
additional information if the City 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 1996 tax year.
Bob Terrell
City Manager
AM%
ISSUED BY THE CITY MANAGER--- FORT WORTH,TEXAS