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Low-income senior citizens will be able to claim an extra $5,000 homestead exemption next year, a savings of about $35.
By LEONORA LaPETER
© St. Petersburg Times, published October 6, 2000
ST. PETERSBURG -- Low-income seniors who own their own homes in St. Petersburg will get up to a $35 property tax break next year.
The City Council decided to give those over 65 with household incomes of less than $20,000 an additional $5,000 homestead exemption. City officials estimate it will affect between 3,162 and 9,486 households and cost the city less than $350,000.
"This is a great step forward in the recognition of the plight of seniors at or below poverty level," said City Council member Robert Kersteen, who is running for a seat in the Florida House of Representatives in November. "It will also assist us in tightening our fiscal belts."
The new law would appear on tax bills a year from now and affect the city's budget in 2002. Low-income seniors who live in their homes would be able to claim a $25,000 homestead exemption and the $5,000 senior exemption for a total of $30,000. They would pay taxes on the remaining value of their homes.
With a current city tax rate of $7.15 per $1,000 in assessed value, the break works out to about $35 annually for owners of homes worth more than $30,000.
In a 1998 referendum, voters authorized Florida cities and counties to provide low-income seniors an additional homestead exemption of up to $25,000. Hillsborough County and St. Pete Beach have approved tax breaks for seniors.
But the senior homestead exemption has been controversial because local governments are not sure how many people will take advantage of it or how it will affect tax revenues. The Citrus County Commission rejected an additional $25,000 exemption for seniors in April after learning that it could cull $1-million from the county's revenues and force the commission to raise taxes for other residents.
St. Petersburg's City Council chose to take the middle ground, providing seniors with a small tax break to see how many people would claim the it. They might revisit the issue later.
To claim the tax cut, residents must provide copies of their tax returns, as well as a sworn statement of income from the Department of Revenue.
Few residents spoke on the exemption at Thursday's meeting. Gonzales Ortez, 72, thought the city should provide a way for renters to receive a tax cut.
"I feel if you do it for a few people, you should do it for all," he said.
Emily Rogers Coeyman, 79, wanted the city to give seniors a larger tax cut now because city tax revenues grow every year due to increased home values.
"The majority of the people with an income of less than $20,000 who have realized this age bracket have left the area anyway," Coeyman said. "They can't afford it here. They've moved to Largo and Dunedin where the taxes are lower."
In other business, the council:
Annexed a 4.8-acre parcel of property on the northeast corner of 54th Avenue N and 22nd Street N, where developers want to place a Cracker Barrel restaurant and a Holiday Inn Express. The city still must consider plans for the restaurant and hotel.
Awarded a three-year contract for $865,000 to Central Parking System of Florida to manage and operate three city parking garages, including the garage that will open near the BayWalk entertainment complex. Two of the companies that bid on the project have filed protests over the bid award, but council members decided to let the companies follow the city's grievance procedures.
- Staff writer Leonora LaPeter can be reached at 893-8640 or lapeter@sptimes.com.