HomeMy WebLinkAboutIR 8179 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8179
pTER
M1 To the Mayor and Members of the City Council
of 2 March 16, 1999
' 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: AGRICULTURAL,, FREEPORT, FOREIGN TRADE ZONE,
DISABLED VETERANS, SCENIC LAND, SOLAR AND WIND POWERED ENERGY
DEVICES, POLLUTION CONTROL DEVICES, PRORATED ABSOLUTES, AND
NOMINAL VALUE PERSONAL 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 percent of appraised value (will remain at current level of 20
"^ percent 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$44,000 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 percent 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$40,004 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 1t
presented to Council on an individual basis.) a� r
J
5. TRANSITIONAL HOUSING FOR .INDIGENT PERSONS - exempts re id i u pr'° e �
owned by the United States or an agency of the United States and used to p vz�
housing for the indigent under a program operated or directed by the U.S. Department of
Housing and Urban Development. (The Community Enrichment Center, Open Arms Home,
Inc., and Women's Haven of Tarrant County last participated in this program in 1997. All
program houses have been purchased outright by the non-profit organizations. The
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8179
T!!toPage March 16, 1999
To the Mayor and Members of the City Council
2 of 4
Subject:AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
organizations are receiving a total tax exemption based on another area of tax law and no
longer require City Council approval.)
A comparison of various tax exemptions in selected Texas cities is outlined below:
RESIDENCE HOMESTEAD EXEMPTIONS
Freeport Transitional
General Sr. Citizen Disabled Exemption Pk 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 $15,000 $15,000 $25,000 yes no
Fort Worth 20OYw----,----$40,00-0- $40,900 yes yes
Houston 20% $34,006 $34,006 no no
San Antonio none $60,000 none yes yes
rest average value of a single- y res Zc in F- is $58,484 for the 1998 tax year.
Since the 1998 tax rate is $0.8975/$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 $58,484 $30,000 $80,000
No exemption $524.89 $269.25 $718.00
General homestead 419.92 215.40 574.40
Sr. Citizen w/general homestead 60.92 -0- 215.40
Disabled homestead* 60.92 -0- 215.40
*Homeowner cannot claim both Senior Citizen and Disabled exemption.
The amounts of assessed value and tax revenue lost due to exemptions are presented on the
following tables:
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8179
March 16, 1999
To the Mayor and Members of the City Council Page 3 of 4
Subject:AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
ASSESSED VALUE LOST TO EXEMPTIONS
FY 1997-98 FY 199899
Total assessed value: $19-,075,791,066 $20,632,559,042
Value lost to exemptions:
general residence homestead 1,132,198,423 1,170,659,182
senior citizen homestead 769,729,384 715,393,740
agriculture 214,610,746 326,210,603
freeport goods 1,175,046,243 1,233,368,569
disabled residence homestead- 55,547,888 52,091,585
scenic land 4,845,842 5,479,695
disabled veterans 30,069,643 29,606,334
historic sites 11,516,063 17,967,876
solar/wind energy devices 13,886 13,886
abatements 303,822,411 363,814,948
indigent housing 1,697,100 -0-
pollution control devices 1,654,533 2,293,313
foreign trade zone 80,641,291 113,961,674
prorated absolute -0- 20,720,696
personal property nominal value 123,779 196,567
Total value lost to exemptions $3,781,517,232 $4,051,778,668
Net assessed value (as of September� $15,294,263,834 $16,580,779,374
REVENUE LOST TO EXEMPTIONS -u-'
FY 1997-98 FY 1998-99
G $10,416,M $10,506,666,7 GSM
General residence homestead!
Senior citizen homestead* 7,081,510 6,420,659,--f
Agriculture 1,974,419 2,927,740
Freeport goods 10,810,425 11,069,483,—'z7 k J
Disabled residence homestead* 511,041 467,522
Scenic land 44,582 49,180
Disabled veterans 276,641 265,717
Historic sites* 105,948 161,262
Solar/wind energy devices 128 125
Abatements* 2,795,166 3,265,239
Indigent housing* 15,613 -0-
Pollution control devices 15,222 20,582 .........
Foreign trade zone
741,900 1,022,806
Prorated absolute -0- 185,968
Personal property nominal value 1,139 1.764
�q
Total revenue lost to exemptions $34,789,959 $36,364,713
*Discretionary
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8179
March 16, 1999
To the Mayor and Members of the City Council Page 4 of 4
Subject:AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
Property owners have until April 30'h to apply for the various property tax exemptions currently
offered by the City for the 1999 tax year.
The last day the City Council may change the various local option homestead exemptions in order
to impact the FY 1999-00 budget is April 30, 1999. Staff is available to provide additional
information if the City Council should require it.
q.
Bob-Terrell
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS