Presentation on theme: "Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange."— Presentation transcript:
Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange County Property Appraiser
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
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
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
IMPACT to Orange County $565.3 Million in Tax Revenue (based on 2008 value and 2008 proposed 4.9930 mills) AMENDMENT 5 Elimination of the (RLE)
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?
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
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
What does 5 mills instead of 10 mills really mean? Equals 2.179 mills Will not be able to exceed 5 mills
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.
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!