HomeMy WebLinkAboutIR 8593 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8593
To the Mayor and Members of the City Council April 20, 2004
Page 1 of 3
SUBJECT: AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
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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 I 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, if changed prior to May 1, to increase or decrease the
following exemptions:
1. General Residence Homestead Exemption: An exemption of not less than $5,000 and not to
exceed 20 percent of the appraised value. The current value is 20 percent.
2. Senior Citizen Homestead Exemption: This is in addition to the General Residence Homestead
Exemption for owners who are aged 65 and older, or their surviving spouses. The current value is
$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.
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.
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8593
To the Mayor and Members of the City Council April 20, 20.04
Page 2 of 3
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SUBJECT: AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
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. 8593
To the Mayor and Members of the City Council April 20, 2004
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Page 3 of 3
SUBJECT: AD VALOREM TAX EXEMPTION POLICIES AND PRACTICES
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Based upon the $5.3 billion value of exemptions, the following table shows the revenue loss due to each
type of exemption for last year and for the current FY2003-04 budget. 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%
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City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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