HomeMy WebLinkAboutIR 8117 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8117
-% To the Mayor and Members of the City Council
April 14, 1998
Subject: AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
1873
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: AGRICULTURAL, FREEPORT, FOREIGN TRADE ZONE, DISABLED VETERANS,
SCENIC LAND, SOLAR AND WIND POWERED ENERGY DEVICES, POLLUTION CONTROL
DEVICES and NOMINAL VALUE PROPERTY.
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 cur-rent 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 owners, 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 (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 exempt historical
sites. (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 City Council
on an individual basis).
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LISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8117
To the Mayor and Members of the City Council
Ink
Subject:
1873 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. (State laws allowing this exemption took effect January 1, 1992.) The
Community Enrichment Center, Women's Haven, and Open Arms, all non-profit corporations in
Tarrant County are cooperating with HUD to provide 0. comprehensive transitional housing
program for Tarrant County homeless families. This fiscal year the exemption affected 32
properties in Fort Worth.The total fiscal impact on the FY 97-98 budget was $16,569.
A comparison of various tax exemptions in selected Texas cities is outlined below:
RESIDENCE HOMESTEAD EXEMPTIONS
FREEPORT TRANSITIONAL
CITY 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 $55,671 for the 1997 tax year.
Assuming the 1998 tax rate is $0.921$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:
1998 City Taxes on a House with a Value of:
Exemption $55,671 130,000 $80,000
No exemption $512.17 $276.00 $739.00
General Homestead 409.74 220.80 588.80
Sr. Citizen w/General Homestead 41.74 -0- 220.80
Disabled,,,Home tead 41.74 -0- 220.80
Indigent Housing - 0- - 0 - - 0—
oewner cannot nit
oth Senior Citizen and Disabled exemption.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8117
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To the Mayor and Members of the City Council
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1873D VALOREM TAX EXEMPTION POLICIES AND PRACTICES
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
the City) for FY 97-98 is presented on the following tables:
Assessed Value Revenue Loss
Total Assessed Value $19,075,781,066
Value Lost to Exemptions:
Agricultural 214,610,746 $ 1,974,419
Scenic Land 4,845,842 44,582
Disabled Veteran 30,069,643 276,641
Over-65* 769,729,384 7,081,510
Homestead* 1,132,198,423 10,416,225
Disabled Person* 55,547,888 511,041
Freeport 1,175,046,243 10,810,425
Solar/Wind 13,886 128
Pollution Control 1,654,533 15,222
Foreign Trade Zone 80,641,291 741,900
Historic Site* 11,516,063 105,948
Abatement* 303,822,411 2,795,166
Indigent Housing 1,697,100 15,613
Personal Property
Nominal Value - 12.3,779 1,139
Total Value Loss $3,781,517,232 $34,789,959
Net Taxable Value $15,294,263,834
Discretionary
The last day the City Council may change the various local option homestead exemptions in order to
impact the FY 1998-99 budget is April 30, 1998. Staff is available to provide additional information
if the Council should require it. Property owners have until April 30`h to apply for the various
property tax exemptions currently offered by the City for the 1998 tax year.
Bob Terrell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS