Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards...
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Transcript of Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards...
![Page 1: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/1.jpg)
Property Tax Reform
AMENDMENT 1 IMPACT and
AMENDMENT 5 “Tax Swap”
Central Florida School Boards Coalition August 4, 2008
Honorable Bill Donegan, CFAOrange County Property Appraiser
![Page 2: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/2.jpg)
AMENDMENT 1 Revenue impact to Orange County School Board
Additional $25K Homestead Exemption: $0.00
Portability of Save Our Homes Differential: $1,533,729
Tangible Personal Property $25K Exemption
$3,922,809 Total Cost to School Board: $5,456,538
10% Assessment Limitation “cap” non-HX $0.00
![Page 3: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/3.jpg)
Increase of 5.26%
over 2007
![Page 4: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/4.jpg)
View Amendment 1 Tax Impact
![Page 5: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/5.jpg)
![Page 6: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/6.jpg)
AMENDMENT 5
![Page 7: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/7.jpg)
Limits local school millage to 5 mills instead of 10.
Changes the 10% assessment limitation “cap” (as approved by voters on Amendment 1) on all non-homesteaded property to a 5% “cap”.
Eliminates the school ad valorem tax known as the Required Local Effort.
Limits future laws for sales tax exemption to a single subject for a single exemption and requires a legislative finding.
Amendment 5
Amendment 5 does 4 things
![Page 8: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/8.jpg)
Commencing in 2010-2011 fiscal year, elimination of the school ad valorem levy (required by the state) known as the Required Local Effort.
AMENDMENT 5 Elimination of the (RLE)
To be replaced with:
Repeal of certain Sales Tax Exemptions.An increase in the Sales Tax (up to 1%).Spending reductions in the state budget.Other revenues identified or created.
Orange County 2008 Proposed RLE millage: 4.9930
![Page 9: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/9.jpg)
IMPACTto
Orange County
$565.3 Million in Tax Revenue (based on 2008 value and 2008 proposed
4.9930 mills)
AMENDMENT 5 Elimination of the (RLE)
![Page 10: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/10.jpg)
Amendment 5 Regional Impact Orange County: $565,350,473 Seminole County: $161,516,379
Osceola County: $136,576,053 Lake County: $115,934,652
Regional Impact: $1,967,179,576
Statewide Impact Estimate: $9.3 to 10 Billion +/-
Brevard County: $205,995,381
Polk County: $189,246,987
Volusia County: $201,656,332
![Page 11: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/11.jpg)
SHOW ME THE MONEY !
Required Local Effort: 9.7 Billion (State)Additional 1% Sales Tax: 3.8 Billion (State)Shortfall: 5.9 Billion
Where will the money come from?
Repeal of some current Sales Tax Exemptions?
Budget cuts?
Other sources of Revenue? Fees?
![Page 12: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/12.jpg)
An average reduction in ad valorem taxes of 25% to 29%
What does elimination of the (RLE) mean for the average homeowner?
33% for this
homeowner
![Page 13: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/13.jpg)
NOTE: Unlike Amendment 1, which applied only to certain properties or classes of properties, Amendment 5 applies to every parcel.For example: Disney’s Magic Kingdom RLE is:
$1.9 Million
![Page 14: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/14.jpg)
What does 5 mills instead of 10 mills really mean?
Equals
2.179 mills
Will not be able
to exceed 5 mills
![Page 15: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/15.jpg)
AMENDMENT 5 5% Assessment “Cap” instead of 10%
Changes the 10% assessment limitation on all non-homesteaded
property that was approved by voters on Amendment 1, to a 5% “cap”.
Will have no impact to School Board value.
![Page 16: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/16.jpg)
AMENDMENT 5 5% Assessment “Cap”
What will it do?
Will it limit assessment increases?
Yes, for most.
Will it decrease revenue?
Yes, $55 Million.
Will it create inequities?
You better believe it!More than Save Our Homes ever did!
![Page 17: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/17.jpg)
AMENDMENT 5 10% & 5% “Cap” Impact to Orange
Co.
![Page 18: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/18.jpg)
To promote transparency and
education on this topic, I’ve devoted a section on
my web site to
AMENDMENT 5.
![Page 19: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/19.jpg)
Amendment 5 Info
![Page 20: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/20.jpg)
![Page 21: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/21.jpg)
Click on View Amendment 5 Savings
![Page 22: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/22.jpg)
![Page 23: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/23.jpg)
![Page 24: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/24.jpg)
Google “Amendment 5 Florida”
for articles in support of and in opposition to
Amendment 5.
For further reading,
![Page 25: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/25.jpg)
Questions ???
![Page 26: Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.](https://reader030.fdocuments.us/reader030/viewer/2022032702/56649ca55503460f94966a24/html5/thumbnails/26.jpg)
Thank You
Gracias
Honorable Bill Donegan, CFA
Orange County Property Appraiser