HomeMy WebLinkAboutIR 8518 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8518
* Date: Aug. 19, 2003
To the Mayor and Members of the City Council
Page 1 of 3
r$ta SUBJECT: AD VALOREM TAX EXEMPTIONS IN THE FY2003-04 BUDGET
Each year, the City of Fort Worth and the State of Texas allow approximately 18 percent of the total
assessed value of property in Fort Worth to be fully or partially exempted from the property tax.
Exemptions fall into a number of categories, some of which are controllable by the City Council,
provided the policy is changed prior to May 1 of each year. Those exemptions currently being
claimed by Fort Worth property owners over which the City Council exercises no discretionary
power are: Agricultural, Freeport, Foreign Trade Zone, Disable 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 the following
mptions:
1. General Residence Homestead Exemption: An exemption of not less than $5,000 and not
to exceed 20 percent of the appraised value.
2. Senior Citizen Homestead Exemption: This is in addition to the General Residence
Homestead Exemption for owners who are aged 65 and older, and is currently valued at
$40,000.
3. Disabled Homestead Exemption: This exempts $40,000 of homestead value for 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.
4. Historic Sites Exemption: This exempts part or all of the assessed value of property
designated by the Texas Historical Commission or local governing body as an exempt
historical site. The practice in Fort Worth has been to exempt the increase in value resulting
from renovation or preservation of a historical site, with each case presented to the City
Council on an individual basis.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 8518
Date: Aug. 19, 2003
To the Mayor and Members of the City Council
Page 2 of 3
;r,rra SUBJECT: AD VALOREM TAX EXEMPTIONS IN THE FY2003-04 BUDGET
The amount of Current Property Tax Revenue that the City expects to collect in FY2003-04, after
exemptions, is presented in the following table. The total value of property exempted from Property
Taxes is $5.3 billion.
Calculation of Current Property Tax Revenue from Total Appraised Value
FY02-03 FY03-04 Change from
(in$000) Certified Certified FY02-03
Total Appraised Value $27,861,782 $28,967,991 $1,106,209 3.9703%
Less:
Deferred Special Use Value Loss
Agricultural $476,717 $495,872 $19,155 4.02%
Scenic Land $5,991 $5,867 ($124) -2.07%
Partial Exemption Value Loss
Homestead $1,823,773 $2,090,667 $266,894 14.63%
Over-65 $824,633 $850,285 $25,652 3.11%
Freeport Inventory $1,871,548 $1,462,494 ($409,054) -21.86%
Disabled Person $63,806 $67,333 $3,527 5.53%
Disabled Veteran $30,261 $31,119 $858 2.84%
Historic Site $28,402 $21,107 ($7,295) -25.68%
Solar/Wind $14 $14 $0 0.00%
Foreign Trade Zone $36,454 $29,810 ($6,644) -18.23%
Pollution Control $5,921 $5,288 ($633) -10.69%
Abatement Value Loss $396,488 $214,480 ($182,008) -45.91%
Nominal Personal Property $4 $1 ($3) -75.00%
Prorated Absolute $3,571 $1,837 ($1,734) -48,56%
Net Taxable Value $22,294,199 $23,691,817 $1,397,618 6.27%
+ Minimum Value of
Protested Values $1,509,320 $1,646,263 136,943 9.07%
Adjusted Net Taxable Value $23,803,519 $25,338,080 1,534,561 6.45%
Total Levy $205,900 $219,174 13,274 6.45%
Tax Rate per$100 of Value 0.8650 0.8650 0 0.00%
Est.Levy Adjustments 0.23% 0.80% 0 247.83%
(signs reversed)
Collection of Levy $199,264 $208,724 9,460 4.75%
%Collection 97.00% 96.00% (0) -1.03%
Less Est. Refunds ($2,800) ($2,525) 275 -9.82%
Budgeted Revenues $196,464 $206,199 9,735 4.96%
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No- 8518
, rg Date: Aug. 19, 2003
To the Mayor and Members of the City Council
Page 3 of 3
SUBJECT: AD VALOREM TAX EXEMPTIONS IN THE FY2003-04 BUDGET
Based upon the $5.3 billion value of exemptions, the following table shows the revenue loss due to
each type of exemption for the current year and for FY2003-04. Exemptions vary somewhat from
year to year, so the variance from FY2002-03 to FY2003-04 is of no real concern. The largest drop
in exemptions is the reduction in the Freeport Inventory exemption, which is a function of current
economic conditions.
Loss of Revenue Due to Exemptions
FY02-03 FY03-04 Change from
Certified Certified FY02-03
Deferred Special Use Value Loss
Agricultural $3,361,514 $3,529,702 168,189 5.00%
Scenic Land $42,245 $41,762 (483) -1.14%
Partial Exemption Value Loss
Homestead $12,860,120 $14,881,728 2,021,609 15.72%
Over-65 $5,814,802 $6,052,475 237,673 4.09%
Freeport Inventory $13,196,999 $10,410,285 (2,786,715) -21.12%
Disabled Person $449,920 $479,288 29,367 6.53%
Disabled Veteran $213,382 $221,510 8,129 3.81%
Historic Site $200,273 $150,243 (50,030) -24.98%
Solar/Wind $99 $100 1 0.95%
Foreign Trade Zone $257,051 $212,193 (44,858) -17.45%
Pollution Control $41,751 $37,641 (4,110) -9.84%
Abatement Value Loss $2,795,788 $1,526,706 (1,269,083) -45.39%
Nominal Personal Property $28 $7 (21) -74.76%
Prorated Absolute $25,180 $13,076 (12,104) -48.07%
TOTAL $39,259,153 $37,556,717 (1,702,437) -4.34%
e,'fW7. Jackso
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS