Memorandum No. 04-125___________
Date: August
31, 2004
To: Mayor and City Council
Thru: Walt Wrede, City Manager
From: Dean W. Baugh, Finance
Director
RE: Senior Property Tax
Exemption Change Ord 04-__
The following is
the fiscal impact and clarification of Ordinance 04-__, Adjustment of the
senior property tax exemption from $150,000 to $200,000.
·
WHEREAS number three states ”that seniors who reside outside the City of
Homer and who live in their residence are exempt from paying Kenai Peninsula
Borough real property taxes on the FULL value of their residence” .
·
It needs to be pointed out that qualified seniors living INSIDE the City
of Homer are also exempt from paying Kenai Peninsula Borough real property
taxes on the FULL value of their residence. And are exempt from pay the City of Homer’s real property taxes
on the first $150,000 of value on their residence.
·
WHEREAS number seven states “seniors who are 65 years or older who live
inside the City of Homer and live in the residence must pay taxes on assessed
value or real property for any portion above $150,000”.
·
It needs to be pointed out that the taxes paid on value over $150,000 is
only the City of Homer’s 5mil property tax, they are still exempt from the
Kenai Peninsula Borough’s real property taxes same as a seniors living out side
the City of Homer.
Fiscal impact of this adjustment:
|
|
|
|
|
Tax Value |
|
Total Value of Senior property |
$31,380,000 |
$ 156,900 |
||
|
Total Current Exempt Value |
$25,196,200 |
$ 125,981 |
||
|
Total Proposed Exempt Value |
$28,733,400 |
$ 143,667 |
||
|
Total Current Taxable Value |
$ 6,183,800 |
$ 30,919 |
||
|
Total Proposed Taxable Value |
$ 2,646,600 |
$ 13,233 |
||
|
|
|
|
||
|
Tax Range Payable |
Number of tax payers
before |
Number of tax payers
after |
||
|
|
|
|
||
|
Between
$1 - $100 |
26 |
15 |
||
|
Between
$101 - $200 |
17 |
10 |
||
|
Between
$201 - $300 |
21 |
6 |
||
|
Between
$301 - $400 |
14 |
5 |
||
|
Between
$401 - $500 |
4 |
2 |
||
|
Between
$501 - $1,000 |
14 |
5 |
||
|
Between
$1,001 - $1,500 |
4 |
2 |
||
|
Between
$1,501 - $2,000 |
1 |
1 |
||
|
|
101 |
46 |
||