News

Homestead exemption for seniors makes sense

A Times Editorial
Published September 9, 2007

---

ADVERTISEMENT

In 1998, the Florida Legislature passed a law that allowed local governments to double the standard $25,000 homestead exemption for low-income homeowners age 65 and older. The Hernando County Commission pondered, but never seized, that opportunity.

Then, in November 2006, Florida voters overwhelmingly approved Constitutional Amendment 6, which provided for an additional $25,000 exemption beyond the $25,000 approved in 1998, and the original $25,000.

That means when the Hernando County Commission meets Thursday to once again weigh the possibility of enacting this hefty tax break, qualified homeowners might not be taxed on the first $75,000 of their homesteaded property beginning Oct. 1, 2008.

If approved, it will mean between $600,000 and $1.2-million less in property tax revenue for the commission in fiscal year 2008-09, and at a time when budget builders already are struggling to meet state-mandated millage cuts.

Nonetheless, the commissioners should approve this proposal. In the current economic climate, which is exacerbated by a slump in the real estate market and outlandish property insurance increases, the commission should not pass up a chance to assist a segment of its neediest and most vulnerable constituents. The poor elderly are deserving of extra aid because, unlike low-income younger people, most are unable to supplement their fixed incomes.

And there are other compelling reasons this targeted tax break makes sense for Hernando County.

For one, this county still has a greater number of elderly people per capita than many other Florida counties. That means the more they pay in property taxes, the less disposable income they have to spend, which has a direct effect on the economy. It also means they must rely more on government social services and charities, which increases costs for all residents.

For another, granting the additional homestead exemption is the will of the people. Seventy-one percent of Hernando County residents who cast a ballot on Amendment 6 last year voted ""yes" to allow the additional homestead exemption. By any standard, that is a mandate and one the commission cannot continue to set aside.

The Property Appraiser's Office has estimated that about 4,600 low-income senior homeowners would be eligible for the additional tax exemption, which stipulates that the household's annual income be less than $24,000. The exemption is not without its flaws, however. The most glaring is that it does not take into account the difference between income and worth. There is a very real possibility that some seniors whose income is below the threshold, but who have substantial wealth in real estate, savings or tax-exempt securities, will take unscrupulous advantage of the exemption.

Still, Property Appraiser Alvin Mazourek, who is first in line to hear the sad stories from poor, elderly residents who struggle to afford their property taxes, fully endorses passage of the additional homestead exemption. On Thursday, the commission should echo Mazourek's support and provide a tangible means for these residents to keep pace with inflation.

[Last modified September 9, 2007, 01:28:16]

[an error occurred while processing this directive]