Property Tax Reform

AMENDMENT 1 IMPACT and

AMENDMENT 5 “Tax Swap”

Central Florida School Boards Coalition August 4, 2008

Honorable Bill Donegan, CFAOrange 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

Increase of 5.26%

over 2007

View Amendment 1 Tax Impact

AMENDMENT 5

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

IMPACTto

Orange County

$565.3 Million in Tax Revenue (based on 2008 value and 2008 proposed

4.9930 mills)

AMENDMENT 5 Elimination of the (RLE)

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

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!

AMENDMENT 5 10% & 5% “Cap” Impact to Orange

Co.

To promote transparency and

education on this topic, I’ve devoted a section on

my web site to

AMENDMENT 5.

Amendment 5 Info

Click on View Amendment 5 Savings

Google “Amendment 5 Florida”

for articles in support of and in opposition to

Amendment 5.

For further reading,

Questions ???

Thank You

Gracias

Honorable Bill Donegan, CFA

Orange County Property Appraiser