Subject:
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Ordinance of Pinellas County, Florida, related to ad valorem tax exemption, amending Chapter 118 of the Pinellas County Code to create a new Article VIII, Additional Homestead Exemption for Qualifying Living Quarters of Parents or Grandparents. (Legislative)
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Recommended Action:
Recommended Action
Conduct a public hearing and approve an ordinance amending Chapter 118 of the Pinellas County Code, creating a new Article VIII regarding Additional Homestead Exemption for Qualifying Living Quarters of Parents or Grandparents.
• This additional homestead exemption is authorized by Florida Statutes and would cover unincorporated areas of the County.
• Would reduce the assessment of increased property value from the construction or reconstruction of living quarters for parents or grandparents of the property owner or owner’s spouse.
• The parent(s) or grandparent(s) must be at least 62 years old and cannot have a homestead exemption of their own elsewhere.
• Applies only to improvements made after the adoption date of the ordinance.
• The taxable value excluded may not exceed 20 percent of the assessed value of the property as improved.
• This ordinance is complementary to a separate code amendment proposal involving increased flexibility for accessory dwelling units.
• This ordinance is estimated by the Office of Management and Budget to cause a reduction of Ad Valorem tax revenue from the unincorporated area Municipal Service Taxing Unit of approximately $1,300.00 per year based on comparable data from another nearby County, adjusted for differences in population and property tax rates.
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Strategic Plan:
Foster Continual Economic Growth and Vitality
4.3 Catalyze redevelopment through planning and regulatory programs
Deliver First Class Services to the Public and our Customers
5.2 Be responsible stewards of the public’s resources
Summary:
Summary
This is an ordinance amending Chapter 118 of the Pinellas County Code, providing for a new Article VIII pertaining to additional homestead exemption for qualifying living quarters of parents or grandparents. The intent of this proposal is to encourage the provision of housing for senior citizens and investment in construction and reconstruction of residential properties to provide additional housing for family members.
Florida Statutes authorize the County to reduce assessed value of homestead property to provide tax relief to eligible property owners within unincorporated Pinellas County. Specifically, the ordinance would allow for the reduction of the assessment of increased property value resulting from construction or reconstruction of living quarters for parents or grandparents of the property owner or owner’s spouse. At least one (1) parent or grandparent must reside on site, and he or she must be at least 62 years old. The value excluded may be either the increase of the assessed value of the construction or reconstruction, or up to 20 percent of the total assessed value of the property as improved, whichever is less. The property owner must file an application and required documentation with the Pinellas County Property Appraiser.
The assessed reduction would only apply to improvements made after the adoption date of the ordinance. The living quarter improvements must be completed before January 1st of the year when the reduction is sought. It only applies for taxable years during which the parent(s) or grandparent(s) maintains his or her primary place of residence in the living quarters and the parent(s) or grandparent(s) cannot have a homestead exemption elsewhere. If property ownership changes, a new application from the new owner would be required. The property owner must notify the Property Appraiser if they no longer qualify for the reduction.
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Background Information:
This ordinance is complementary to other recent Code amendment proposals involving increased flexibility for accessory dwelling units (ADUs) and can ultimately help provide increased opportunity for overall housing options that can be more affordable.
Fiscal Impact:
Any fiscal impact would not occur until January 1st, 2025. That impact would apply only to qualifying improvements made after the ordinance effective date and before January 1st, 2025. Fiscal impacts during following years would depend on how many qualifying applications are received and approved.
The potential fiscal impact of this ordinance was calculated based on the 84 parcels that have received exemption in Hillsborough County from 2003-2024. Hillsborough’s unincorporated population, and MSTU millage rate, were also used in this calculation.
Staff Member Responsible:
Glenn Bailey, Interim Director, Housing and Community Development
Partners:
Pinellas County Property Appraiser
Attachments:
Proposed Ordinance
Business Impact Estimate
Legal Ad
PowerPoint Presentation