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HomeMy WebLinkAboutItem 08 - Homestead Tax ExemptionMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: NOVEMBER 5, 2019 SUBJECT: APPROVAL OF AN INCREASE TO THE OPTIONAL RESIDENCE HOMESTEAD EXEMPTION FOR PERSONS AT LEAST 65 YEARS OF AGE AND ADOPT AN ORDINANCE RECOMMENDATION: City Council to consider an ordinance amending the Code of Ordinances Chapter 21 Taxation, Section 21-6 Homestead Exemption for persons 65 years or older, increasing the optional residence homestead exemption for persons at least 65 years of age from $60,000 to $75,000 of the appraised value. FUNDING SOURCE: This action will have not have a significant effect on City funds. BACKGROUND: During the FY20 Budget discussions, staff committed to evaluate options to provide property tax relief to persons 65 years of age and older. This recommendation provides relief while maintaining long term sustainability to provide the highest level of service to residents. This ordinance is proposed to increase the optional homestead exemption for persons who are at least 65 years of age. The current exemption for persons at least 65 years of age is $60,000 of the appraised value. Upon approval, this exemption would increase to $75,000 of the appraised value. Staff has conducted extensive research on this topic and concluded that this action in conjunction with the passage of Senate Bill 2, which places a 3.5% cap on property tax revenue growth, will not have a significant effect on City funds. Staff recommends approval. ORDINANCE NO. 2019-073 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, INCREASING THE OPTIONAL RESIDENCE HOMESTEAD EXEMPTION FOR PERSONS WHO ARE AT LEAST 65 YEARS OF AGE PURSUANT TO §11.13(D), TEXAS TAX CODE; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council of the City of Grapevine, exercising its authority under the Texas Constitution and the Texas Property Tax Code, and other laws and resolutions, wishes to grant tax relief to those persons who are over 65 years of age; and WHEREAS, the City of Grapevine believes that granting this tax relief is in the best interests of the community; and WHEREAS, in accordance with Section 11.13 of the Texas Tax Code, the City wishes to increase said exemption for residences of persons who are 65 years of age or older from $60,000 to $75,000; and WHEREAS, all constitutional and statutory prerequisites for the approval of this ordinance have been met, including but not limited to the Open Meetings Act and Chapter 211 of the Local Government Code; and WHEREAS, the City Council deems the adoption of this ordinance to be in the best interests of the health, safety, and welfare of the public. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That Section 21-6, Chapter 21 of the Code of Ordinances relating to homestead exemption for person sixty-five (65) years of age or older is hereby amended in its entirety to read as follows: "A. That pursuant to Section 11.13 of the Property Tax Code of the State of Texas, Seventy-five Thousand Dollars ($75,000) of the appraised value of any residence homestead of any married or unmarried male or female person, including those living alone, who is sixty-five (65) years of age or older, shall be exempt from all City ad valorem taxes commencing with the tax year 2020, and all subsequent levies, upon the owner's compliance with the following requirements: 1. The owner of the residence homestead, or one of the spouses residing thereat, if the residence homestead is owned by a married couple, shall have attained the age of sixty-five (65) years or older as of January 1, of the tax year for which the exemption is to be claimed, beginning with the tax year 2020. 2. The owner of the residence homestead claiming an exemption set out herein shall submit to the Assessor and Collector of Taxes for the City an affidavit that the owner or one of the spouses, if the residence homestead is owned by a married couple, is sixty-five (65) years of age or older and was as of January 1 of the tax year. The initial exemption claim shall be accomplished by providing adequate proof of such age, but subsequent renewals of the exemption may be by affidavit only. B. Any person who makes a false affidavit in claiming the homestead exemption declared herein shall be subject to all interest charges and penalties which exist for the lack of payment of taxes, and such exemption shall be cancelled and withdrawn for the tax year claimed, and all other appropriate criminal penalties shall be applicable." Section 3. That the terms and provisions of this ordinance shall be deemed to be severable, and that if the validity of any section, subsection, word, sentence or phrase shall be held to be invalid, it shall not affect the remaining part of this ordinance. Section 4. That the fact that the present ordinances and regulations of the City of Grapevine, Texas, are inadequate to properly safeguard the health, safety, morals, peace and general welfare of the inhabitants of the City of Grapevine, Texas, creates an emergency for the immediate preservation of the public business, property, health, safety and general welfare of the public which requires that this ordinance shall become effective from and after the date of its final passage, and it is accordingly so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 5th day of November, 2019. APPROVED: William D. Tate Mayor Ordinance No. 2019-073 2 ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: City Attorney Ordinance No. 2019-073