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Property Tax Reform AMENDMENT 1 IMPACT and AMENDMENT 5 “Tax Swap” Central Florida School Boards Coalition August 4, 2008 Honorable Bill Donegan, CFA Orange.

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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:

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 County Property Appraiser

2 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

3 Increase of 5.26% over 2007

4 View Amendment 1 Tax Impact

5

6 AMENDMENT 5

7  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

8 Commencing in 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:

9 IMPACT to Orange County $565.3 Million in Tax Revenue (based on 2008 value and 2008 proposed mills) AMENDMENT 5 Elimination of the (RLE)

10 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

11 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?

12 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

13 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

14 What does 5 mills instead of 10 mills really mean? Equals mills Will not be able to exceed 5 mills

15 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.

16 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!

17 AMENDMENT 5 10% & 5% “Cap” Impact to Orange Co.

18 To promote transparency and education on this topic, I’ve devoted a section on my web site to AMENDMENT 5.

19 Amendment 5 Info

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21 Click on View Amendment 5 Savings

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24 Google “Amendment 5 Florida” for articles in support of and in opposition to Amendment 5. For further reading,

25 Questions ???

26 Thank You Gracias Honorable Bill Donegan, CFA Orange County Property Appraiser


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