HomeMy WebLinkAboutIR 8390 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. Ingo
u March 26, 2002
To the Mayor and Members of the City Council
Page 1 of 4
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:
i. 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$40,000.
unless revoked or increased by City Council.)
3. DISABLED HOMESTEAD EXEEMPTION - 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$40,000 unless amended by the City Council prior to May 1.)
4. HISTORIC ST'I'ES 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.)
wv,,
.rwunnrmimmmwkhra�9mm ummrinr i� � o
ISSUED BY THE CITY MANAGER FORT WORTH_TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8390
or" March 26, 2002
* To the Mayor and Members of the City Council
Page 2 of 4
lays '
SUBJECT; AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
A comparison of various taxx exemptions in selected Texas cities is outlined below:
RESIDENCE HOMESTEAD EXEMPTIONS Freeport
General Sr. Citizen Disabled Exemption
Arlington 20% $55,000 $55,000 yes
Austin none $51,000 $51,000 yes
Dallas 20% $64,000 $64,000 yes
El Paso none $15,000 $15,000 yes
Fort Worth 20% $40,000 $40,000 yes
Houston 20.0 $34,000 $34,000 no
San Antonio none $60,000 none yes
The average value of a single-family residence in Fort Worth is$74,140 for the 2001 tax year. Since the 2001
tax rate is $0.865/$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:
2001 City Taxes on a House with a Value of
Exemption $74,140 $30,000 $100,000
No exemption $641.31 $259.50 $865.00
General homestead 513.05 207.60 692.00
Sr. Citizen w/general homestead 167.05 -0- 346.00
Disabled homestead* 167.05 -0- 346.00
*Homeowner cannot claim both Senior Citizen and Disabled exemption.
iorviooiiwwwomamwuwwlwia'miNtimuummlumoWNliliMmOlNNllm",:M1���'fi
(( 7
ISSUED BY THE CITY MANAGER FORT WORTH_ TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8390
March 26, 2002
To the Mayor and Members of the City Council
Ar Page 3 of 4
fayi '
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 2000-01 FY 2001-02
Total assessed value: $24,702,811,370 $28,190,510,698
Value lost to exemptions:
general residence homestead 1,417,767,833 1,624,675,464
senior citizen homestead 769,727,718 800,310,608
agriculture 380,275,676 477,102,060
freeport goods 1,684,086,318 2,396,461,949
disabled residence homestead 59,551,117 59,222,108
scenic land 5,789,310 5,814,605
disabled veterans 28,889,226 29,688,338
historic sites 21,433,045 27,973,852
solar/wind energy devices 13,886 13,886
abatements 530,719,609 450,755,270
pollution control devices 5,275,154 2,072,127
foreign trade zone 47,924,125 * 50,174,693
prorated absolute 3,616,762 12,709,242
personal property nominal value 171,471 139,305
Total value lost to exemptions 4,955,241250 5.937.113,507
Net assessed value(as of September) $1 9,747,570,120 $22,253,397,191
*Note:Nokia did not file for a foreign trade zone exemption due to massive inventory reductions.
w„ ,,��uiomooimmwwwuunauwr�iminarvrammruruwru!wwuooamueom
rq ( af tF �
J
ww
1 ISSUED BY"rHE CITY MANAGER FORT WORTH. 'TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8390
March 26, 2002
1' F To the Mayor and Members of the City Council
Page 4 of 4
SUBJECT: AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
REVENUE LOST TO EXEMPTIONS
FY 2000-01 , FY 2001-02
General residence homestead* $12,405,468 $14,053,443
Senior citizen homestead* 6,735,117 6,922,687
Agriculture 3,327,412 4,126,933 .
Freeport goods 14,735,755 20,729,396
Disabled residence homestead* 521,072 512,271
Scenic land 50,656 50,296
Disabled veterans 252,781 256,804
Historic sites* 187,539 241,974
Solar/wind energy devices 123 120
Abatements* 4,643,797 3,899,033
Pollution control devices 46,158 17,924
Foreign trade zone 419,336 434,011
Prorated absolute 31,647 109,935
Personal property nominal value 1,500 1,205
Total revenue lost to exemptions $43,358,361 $51,356,032
*Discretionary
Property owners have until April 30a' to apply for the various property tax exemptions currently offered by
the City for the 2002 tax year.
The last day the City Council may change the various local option homestead exemptions in order to impact
the FY 2002-03 budget is April 30, 2002. Staff is available to provide additional information if the City
Council should require it.
II` I
• � f ,F UIY ��- If� I �Oi' � I��y r '�
f ) I✓ .- 1 o-1{
Gary W. Jackson
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS