Res 51-12RESOLUTION NO. 51 -12
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA CONCERNING
AMENDMENT 4 TO THE FLORIDA CONSTITUTION
WHICH, IF ADOPTED, WOULD CREATED ADDITIONAL
INEQUITIES IN FLORIDA'S TAX SYSTEM BY GRANTING
CERTAIN TAX BREAKS TO SOME TAXPAYERS AT THE
EXPENSE OF OTHER TAXPAYERS.
WHEREAS, a proposed constitutional amendment sponsored by the Florida Legislature
will be placed on the 2012 general election ballot as "Amendment 4"; and
WHEREAS, this proposed constitutional change reduces the current assessment limitation
on non - homestead real property from 10 percent to 5 percent; and
WHEREAS, the proposed amendment grants first -time homesteaders an additional
homestead exemption equal to 50 percent of the just value of the property up to the county median
home value; and
WHEREAS, the proposed amendment creates a provision that allows the Legislature by
general law to prohibit increases in the assessed value of homestead property if the just value of the
property decreases; and
WHEREAS, Amendment 4 creates inequities for non - homestead properties by allowing
identical properties to be taxed differently, and Amendment 4 extends the sunset provision already
in the Florida Constitution from 2019 to 2023, which allows these inequities to be in place longer;
and
WHEREAS, Amendment 4 shifts the tax burden to new or growing businesses, creating an
unfair disadvantage for new businesses that would have to pay higher property taxes than their more
established counterparts; and
WHEREAS, the non - homestead cap reduction and the first -time homesteader provision
apply to city and county taxes and not to school property taxes; and
WHEREAS, over the last few years, several property tax initiatives, including additional
homestead exemptions, Save Our Homes portability and statutory millage caps, have also
contributed to the unequal treatment of Florida's taxpayers.
WHEREAS, there are estimates of the total tax impact of Amendment 4 of $1.6 billion
cumulatively over a four -year period beginning in 2013 -2014, with approximately $447 million borne
by cities.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF DELRAY BEACH, FLORIDA AS FOLLOWS:
Section 1. That the City of Delray Beach will evaluate the impact Amendment 4 may have
on its property taxes.
Section 2. That the City of Delray Beach urges its residents to carefully consider the
potential adverse consequences of Amendment 4 before voting in t11e November 2012 general
election.
Section 3. That a copy of this resolution be provided to the Florida League of Cities, Inc.
and other interested parties.
PASSED AND ADOPTED in regular session on this the 2 "' day of October, 2012.
4 co,04 Qi
ATTEST:
City Clerk
MAYO
2
Res No. 51 -12
Coversheet
MEMORANDUM
TO: Mayor and City Commissioners
FROM: David T. Harden, City Manager
DATE: September 26, 2012
Page 1 of 1
SUBJECT: AGENDA ITEM 9.E. - REGULAR COMMISSION MEETING OF OCTOBER 2.2012
RESOLUTION NO. 51-12
ITEM BEFORE COMMISSION
Resolution No. 51 -12 is before Commission to not support Amendment 4 to the Florida Constitution
which, if adopted, would create additional inequities in Florida's tax system by granting certain tax
breaks to some taxpayers at the expense of other taxpayers.
BACKGROUND
The resolution urges our residents to consider the potential consequences of Amendment 4 to the
Florida Constitution to be voted on in the November 6, 2012 general election:
If passed, Amendment 4 shifts the tax burden to new or growing businesses creating an unfair
disadvantage for new businesses that would have to pay higher property taxes than their established
counterparts.
Amendment 4 makes our complicated property tax system even worse.
The amendment is unfair to Florida homesteaded residents. It defines a first time home buyer as anyone
who has not had a homestead exemption in Florida in the last three years. Thus it favors people moving
into the state at the expense of those already here.
The amendment is unbalanced because identical properties will pay different taxes. It will create the
same inequities among non - homestead properties, including business property and vacant land, as we
currently have with homestead properties.
RECOMMENDATION
Approve Resolution No. 51 -12.
http: // agendas. mydelraybeach .com /Bluesheet.aspx ?ItemID= 6050 &MeetingID =3 90 10/4/2012
RESOLUTION NO. 51 -12
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA CONCERNING
AMENDMENT 4 TO THE FLORIDA CONSTITUTION
WHICH, IF ADOPTED, WOULD CREATED ADDITIONAL
INEQUITIES IN FLORIDA'S TAX SYSTEM BY GRANTING
CERTAIN TAX BREAKS TO SOME TAXPAYERS AT THE
EXPENSE OF OTHER TAXPAYERS.
WHEREAS, a proposed constitutional amendment sponsored by the Florida Legislature
will be placed on the 2012 general election ballot as "Amendment 4 "; and
WHEREAS, this proposed constitutional change reduces the current assessment limitation
on non- homestead real property from 10 percent to 5 percent; and
WHEREAS, the proposed amendment grants first -time homesteaders an additional
homestead exemption equal to 50 percent of the just value of the property up to the county median
home value; and
WHEREAS, the proposed amendment creates a provision that allows the Legislature by
general law to prohibit increases in the assessed value of homestead property if the just value of the
property decreases; and
WHEREAS, Amendment 4 creates inequities for non - homestead properties by allowing
identical properties to be taxed differently, and amendment 4 extends the sunset provision already
in the Florida Constitution from 2019 to 2023, which allows these inequities to be in place longer;
and
WHEREAS, Amendment 4 shifts the tax burden to new or growing businesses, creating an
unfair disadvantage for new businesses that would have to pay higher property taxes than their more
established counterparts; and
WHEREAS, the non - homestead cap reduction and the first -time homesteader provision
apply to city and county taxes and not to school property taxes; and
WHEREAS, over the last few years, several property tax initiatives, including additional
homestead exemptions, Save Our Homes portability and statutory millage caps, have also
contributed to the unequal treatment of Florida's taxpayers.
WHEREAS, there are estimates of the total tax impact of Amendment 4 of $1.6 billion
cumulatively over a four -year period beginning in 2013 -2014, with approximately $447 million borne
by cities.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF DELRAY BEACH, FLORIDA AS FOLLOWS:
Section 1. That the City of Delray Beach will evaluate the impact Amendment 4 may have
on its property taxes.
Section 2. That the City of Delray Beach urges its residents to carefully consider the
potential adverse consequences of Amendment 4 before voting in the November 2012 general
election.
Section 3. That a copy of this resolution be provided to the Florida League of Cities, Inc.
and other interested parties.
PASSED AND ADOPTED in regular session on this the day of , 2012.
ATTEST:
City Clerk
• I t
2
Res No. 51 -12
Palm Beach County, FL Supervisor of Elections
Cenral Election 11/0612011
NO.4 CONSTITITIONA L AM EN DM ENT
ARTICLE VII, SECTIONS 4, 6&
ARTICLE x11, SECTIONS 27, 32, 33
Vote For I
Page 1 of 1
Property Tax Limitations; Properly Value Decline; Reduction for Nonhomestead Assessment Increases; Delay
of Scheduled Repeal
(1) This would amend Florida Constitution Article VII, Section 4 (Taxation; assessments) and Section 6 (Homestead
exemptions). It also would amend Article XII, Section 27, and add Sections 32 and 33, relating to the Schedule for
the amendments.
(2) In certain circumstances, the law requires the assessed value of homestead and specified nonhomestead property
to increase when the just value of the property decreases. Therefore, this amendment provides that the Legislature
may, by general law, provide that the assessment of homestead and specified nonhomestead property may not
increase if the just value of that property is less than the just value of the property on the preceding January I, subject
to any adjustment in the assessed value due to changes, additions, reductions, or improvements to such property
which are assessed as provided for by general law. This amendment takes effect upon approval by the voters. If
approved at a special election held on the date of the 2012 presidential preference primary, it shall operate
retroactively to January 1, 2012, or, if approved at the 2012 general election, shall take effect January 1, 2013.
(3) This amendment reduces from 10 percent to 5 percent the limitation on annual changes in assessments of
nonhomestead real property. This amendment takes effect upon approval of the voters. If approved at a special
election held on the date of the 2012 presidential preference primary, it shall operate retroactively to January 1, 2012,
or, if approved at the 2012 general election, takes effect January 1, 2013.
(4),'his amendment also authorizes general law to provide, subject to conditions specified in such law, an additional
homestead exemption to every person who establishes the right to receive the homestead exemption provided in the
Florida Constitution within I year after purchasing the homestead property and who has not owned property in the
previous 3 calendar years to which the Florida homestead exemption applied. The additional homestead exemption
shall apply to all levies except school district levies. The additional exemption is an amount equal to 50 percent of
the homestead property's just value on January I of the year the homestead is established. The additional homestead
exemption may not exceed an amount equal to the median just value of all homestead property within the county
where the property at issue is located for the calendar year immediately preceding January 1 of the year the
homestead is established. The additional exemption shall apply for the shorter of 5 years or the year of sale of the
property. The amount of the additional exemption shall be reduced in each subsequent year by an amount equal to 20
percent of the amount of the additional exemption received in the year the homestead was established or by an
amownt equal to the difference between the just value of the property and the assessed value of the property
determined wider Article VII, Section 4(d), whichever is greater. Not more than one such exemption shall be allowed
per homestead property at one time. The additional exemption applies to property purchased on or after January 1,
2011, if approved by the voters at a special election held on the date of the 2012 presidential preference primary, or
to property purchased on or after January 1, 2012, if approved by the voters at the 2012 general election. The
additional exemption is not available in the sixth and subsequent years after it is first received. The amendment shall
take effect upon approval by the voters. If approved at a special election held on the date of the 2012 presidential
preference primary, it shall operate retroactively to January 1, 2012, or, if approved at the 2012 general election,
takes effect January 1, 2013.
(5) This amendment also delays until. 2023, the repeal, currently scheduled to take effect in 2019, of constitutional
amendments adopted in 2008 which limit annual assessment increases for specified nonhomestead real property.
This amendment delays until 2022 the submission of an amendment proposing the abrogation of such repeal to the
voters.
YES
NO
http:// www. pbcelections .org /OfficeCandidates.aspx ?eid= 129 &oid = 770 &pid =- I &printer -fr... 9/26/2012
The Facts About
AMENDMENT 4
Amendment 4 takes a complicated property tax system and makes
it worse! It shifts Florida's property tax burden onto new and growing
businesses and Florida residents while providing special benefits to
out -of -state and non - homestead property owners.
Hurts new jobs and growing businesses.
Amendment 4 puts new and growing businesses at a disadvantage by making them pay higher taxes
than paid by established businesses. This measure will stymie business expansion of Florida -based
businesses and discourage new businesses from locating to Florida.
Makes our complicated property tax system even worse.
Florida's property tax system is already complex. Numerous changes have been made over the years,
which makes it difficult to understand. Amendment 4 just adds to the confusion.
Is unfair to Florida (homestead) residents.
Amendment 4 favors out -of- state, second home property owners and owners of large tracts of vacant
land and shifts the cost of paying for public services to long -time Florida residents. This measure creates
an unfair "us- versus -them" tax system that hurts those who live and work here.
Is unbalanced because identical properties will pay different taxes.
Amendment 4 takes an already unfair and unbalanced tax system and makes it even worse by providing
special benefits for out -of -state and second home property owners. Amendment 4 will allow identical
properties to be taxed differently. It allows this inequity to be in place until 2023.
It will impact cities' major revenue source.
By providing special tax benefits to out -of -state and second property owners, local governments will see its
major source of revenue negatively impacted again. Property taxes are used to fund basic services such as
police protection, fire protection, parks and recreation, and other public services citizens depend on.
AMENDMENT 4
Unfair. Unbalanced. Unworkable.
Paid for by the Florida League of Cities.
301 South Bronough Street, Suite 300, Tallahassee, FL 32301
Know the Facts About
M NDM MT 4
Amendment 4 is one of many state constitutional amendments
that will appear on the November 2092 General Election ballot.
What the Amendment Does.
The official ballot summary is lengthy and has several significant components that:
✓ Reduce the current assessment limitation on commercial property, vacant
property and second homes.
✓ Give first -time home buyers an additional homestead exemption.
✓ Allow the Legislature to prohibit increases in the assessed value of homestead
property if the just value of the property decreases.
✓ Apply the assessment cap reduction and the first -time home buyer provisions
to city and county taxes, not to school property taxes.
AMENDMENT 4
Unfair. Unbalanced. Unworkable.
To learn more, visit
http://www.floridaleagueofcities.com/News.aspx?CNID=9072
Paid for by the Florida League of Cities.
301 South Bronough Street, Suite 300, Tallahassee, FL 32301
..- ... _' �IJMZK`ISVprP..rHOT IC=J6.I.
Amendment 4 Provisions
Estimated Impacts on Non - School Ad Valorem Taxable Values & Taxes
($Millions)
Amendment 4 Contains Three Main Provisions,
1) "First- time" Homesteader exemption - 50% of value phased -out
over five years.
2) Non- homestead Assessment Cap - reduced from 10% to 5 %.
3) Anti - Recapture for property with an assessment cap - if Lust
value drops, assessed value does not go up; includes both Save
Our Homes and Non- Homestead assessment limitations.
Note. Only the Save Our Homes Anti- Recapture change affects school faxes.
* Anti - Recapture Provisions Rrequire legislative implementation
Estimated Taxable Value Impacts ($M)
Total
FY
lsitime,
Anti Recapture*
4ntL1 ecapur.¢*
Taxable Value
FY
fio nesteaders
S sN Gap Homesfeac�
N01 13omeste.�d `
Impacts
2013 -14
(3,304.0)
(7,545.0) (4,880.7)
(1,301.1)
(17,030.8)
2014 -15
(5,077.4)
(14,881.5) (7,994.5)
(3,075.8)
(31,029.3)
2015 -16
(7,124.0)
(22,299.5) (10,028.4)
(3,783.9)
(43,235.8)
2016 -17
(9,359.8)
(36,803.7) (12,363.1)
(4,660.6)
(63,187.2)
* Anti - Recapture Provisions Rrequire legislative implementation
* Anti- Recapture Provisions Rrequire legislative implementation
Estimated Tax Impacts ($M)
Total
FY
1slt�ral tw
=r *
Antr Rectare*
71nt! RezapEure*
Non- School Tax
FY
,„
L.i. .�• i S ��
Nomestedersr
r
STNHS Cap
4
r ` .Homestead
Nan Homestead
Impacts
2013 -14
(35.5)
(82.7)
(54.5)
(14.3)
(187.0)
2014 -15
(54.5)
(163:2)
(89.3)
(317)
(340.7)
2015 -16
(76.5)
(244.6)
(111.8)
(41.5)
(474.4)
2016 -17
(100.6)
(403.6)
(137.2)
(51.1)
(692.5)
4 Yr. Tot
(267.1)
(894.1)
(392.8)
(140.6)
(1,694.6)
* Anti- Recapture Provisions Rrequire legislative implementation
** County level Detail Attached
June 13, 2012 Page 1 Prepared by Capital Analytics, LLC
Impacts By Type of Jurisdiction **
Total
FY
Counties
Cities
Indep. Dist.
Non- School Tax
Impacts
2013 -14
(112.8)
(49.3)
(24.9)
(187.0)
2014 -15
(205.2)
(90.2)
(45.4)
(340.7)
2015 -16
(285.9)
(125.3)
(63.2)
(474.4)
2016 -17
(417.3)
(182.9)
(92.3)
(692.5)
4 Yr. Tot
(1,021.1)
(447.7)
(225.8)
(1,694.6)
** County level Detail Attached
June 13, 2012 Page 1 Prepared by Capital Analytics, LLC
LOCAL LEADERS ANNOUNCE GRASSROOTS
CAMPAIGN AGAINST AMENDMENT 4
(TALLAHASSEE, FL) Officials at the Florida League of Cities (FLC) and the Florida
Association of Counties (FAC) today announced the formation of a grassroots campaign
aimed at alerting voters to the hidden costs of Amendment 4 —a proposed change to
Florida's constitution, which will appear on ballots this November.
"Amendment 4 is a wolf in sheep's clothing," said Bryan Desloge, President of the
Florida Association of Counties and a Leon County Commissioner. "If passed,
Amendment 4 will mean that property taxes for Florida homeowners who have lived in
their homes for several years may go up in order to subsidize tax breaks for non-
residents and real estate investors."
Amendment 4 has already drawn warnings from some local property appraisers, who
caution that Florida's homeowners will ultimately pick up the tab should the measure
pass. Leaders of the newly formed committee — Citizens for Local Decision Making —
vowed a strong "grassroots" approach to get their message out.
"We won't have the resources of the other side," said Manny Morono, President of the
Florida League of Cities and Mayor of the City of Sweetwater. "But we have the facts on
our side. And the fact is that Amendment 4 is likely to lead to tax hikes for full -time
Floridians in order pay for tax breaks for snowbirds. At the end of the day, I believe that
our members — trusted local leaders in their communities —will get the message out at
the grassroots level."
The new committee was announced along with the launch of its website,
www.taxbreaks4snowbirds.org.
Formed by the Florida League of Cities (FLC) and the Florida Association of Counties
(FAC), Citizens for Local Decisions Making is a grassroots organization aimed at
educating voters on the hidden costs of Amendment 4.
EITY OF DELRAY BEREH
DELRAY BEACH
19 CITY CLERK
bft
100 N.W. 1st AVENUE DELRAY BEACH, FLORIDA 33444 . 561/243-7000
All-America City
1
�J
1 993 October 4, 2012
2001
Lynn Tipton, Director of Membership Development
Florida League of Cities, Inc.
Post Office Box 1757
Tallahassee, Florida 32302 -1757
Dear Ms. Tipton:
Please find attached Resolution No. 51 -12 to not support Amendment 4 to the Florida
Constitution. The City Commission passed and adopted Resolution No. 51 -12 at their
Regular Commission Meeting of October 2, 2012.
If I can be of any assistance to you, please call the office between the hours of 8:00 a.m. -
5:00 p.m. Monday through Friday at (561) 243 -7051.
Sincerely,
�. \\�v
Chevelle D. Nubin, MMC
City Clerk
CDN/kw
Attachment
SERVICE • PERFORMANCE - INTEGRITY - KESPON5IBLE - INNOVATIVE • TEAMWORK
EITY OF DELRAY BEREH
DELRAY BEACH
O
bcftd
All- America City
1 I
1993
?001
CITY CLERK 100 N.W. 1st AVENUE DELRAY BEACH, FLORIDA 33444 � 561/'243 71100
CERTIFICATION
I, CHEVELLE D. NUBIN, MMC, City Clerk of the City of Delray
Beach, do hereby certify that the attached document is a true and correct
copy of Resolution No. 51 -12, as the same was passed and adopted by the
Delray Beach City Commission in regular session on the 2nd day of October
2012.
IN WITNESS WHEREOF, I have hereunto set my hand and the
official seal of the City of Delray Beach, Florida, on this the 4th day of October
2012.
Chevelle D. Nubin, MMC
City Clerk
City of Delray Beach, Florida
{SEAL}
SERVICE ° PERFORMANCE ° INTEGRITY ° RESPONSIBLE - INNOVATIVE - TEAMWORK