Will seniors get tax break?

Commissioners are set to discuss increasing their homestead exemption for 50,000.

By BARBARA BEHRENDT, Times Staff Writer
Published September 9, 2007

BROOKSVILLE - County commissioners are expecting plenty of feedback on the affordability of taxes during Thursday's first budget hearing.

But first they plan to talk about something that might offer tax relief to the county's most vulnerable residents: low-income seniors.

Before getting into the nitty-gritty budget debate, the commission is slated to discuss the possibility of raising the homestead exemption for property owners who meet both the age and the income requirements.

In 1998, Florida voters approved the Low Income Senior Homestead Exemption as an amendment to the state Constitution. The Legislature adopted it the following year. Dubbed the Save Our Seniors Amendment, it allowed counties and municipalities to increase the homestead exemption for low-income seniors from the standard $25,000 to $50,000.

Then last year, voters again overwhelmingly supported a new amendment allowing up to an additional $25,000 exemption. In counties and cities approving the total exemption for low-income seniors, owners of homes valued at $75,000 or lower would not pay property taxes to support county and municipal services.

The additional exemptions for low-income seniors do not apply to other taxing districts or school districts.

Voters will decide in January whether to increase the possible exemption for low-income seniors again to $100,000, in addition to the standard $25,000 homestead exemption.

Hernando County has never approved the additional exemptions for seniors, though the issue has been raised several times, according to Property Appraiser Alvin Mazourek.

Mazourek estimates that there could be 4,665 Hernando residents who could qualify for the exemption in 2008 if commissioners approve it. The financial hit on county coffers could approach $630,000 of lost tax revenue in 2008 if the commissioners approve an additional $25,000 exemption. That would rise to $1.05-million if the commission approved the full $50,000 exemption.

The lost revenues would rise over the next few years, Mazourek's office estimates. The estimates are based on what other counties and cities have experienced. The calculations also assume a stable tax rate and stable assessed values.

The other unknown is how many eligible seniors would apply. But Mazourek said if the exemption is approved, he would be sure to send notices out and put them on his office's Web site.

This year, the idea of the added exemption has been raised again as part of the public discussion about the need for tax relief.

"Of all the people who qualify for exemptions, this is a need," Mazourek said. "I think it should be passed. That's my personal opinion. These are the people who really need the help."

In order to qualify for the additional exemption, a property owner would have to be over 65 and qualify for the existing homestead exemption. Also, the annual adjusted gross income of the entire family group living in the home could not top about $24,000. That number is adjusted each year based on the Consumer Price Index.

In many cases, the adjusted gross income number for low-income families does not include any Social Security they receive.

If an additional homestead exemption is approved by the commission by Dec. 1 of this year, it would take effect for property tax bills mailed out in late 2008.

Mazourek guessed that, if the commission approves the added exemption, there would be only a minor impact on his office operations. There would need to be some computer programming changes and additional paperwork to handle.

"We don't think it would be overwhelming," he said.

It would be beneficial for a lot of people, Mazourek said. He knows that because he has frequently gotten calls from financially strapped older residents. He listens to their frustration but has little relief to offer.

"I feel for them," he said.

Barbara Behrendt can be reached at behrendt@sptimes.com or 352 848-1434.

4,665 Estimated number of county residents who could qualify for the exemption.

$630,000 Amount the county would lose in tax revenue if they approve an additional $25,000 exemption.

$105M Loss the county could take in tax revenue if commissioners approve the full $50,000 exemption.

[Last modified September 8, 2007, 19:55:16]