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HomeMy WebLinkAboutReso 2012-1974RESOLUTION NO. 2012- t g A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, CONCERNING 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; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. 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 ten percent (10 %) to five percent (5 %); and WHEREAS, the proposed Amendment grants first -time homesteaders an additional homestead exemption equal to fifty percent (50 %) 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 assessment 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; and 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 SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Evaluate the Impact. The City Commission hereby directs staff to evaluate the impact Amendment 4 may have on its property taxes. Section 2. Urge the Residents. The City Commission hereby urges its residents to carefully consider the potential adverse consequences of Amendment 4 before voting in the November 2012 General Election. Section 3. Directive to the City Clerk. The City Commission hereby directs the City Clerk to transmit a copy of this Resolution to the Florida League of Cities, Inc. Section 4. Authorization of City Manager. The City Manager is hereby authorized to do all things necessary to effectuate this Resolution. Section 5. Effective Date. This Resolution shall become effective upon adoption. PASSED AND ADOPTED this 201h day of September 2012. orman S. Edelcup, Mayof ATTEST: Jane A. Hines, CMC, City Clerk AS TO FORM , SUFFICIENCY: City Attorney Vote: S -b Moved by: \/1 La IM&Ljoe Seconded by: (20 Are.� bIJ Mayor Edelcup jZ Yes) (No) Vice Mayor Thaler V(Yes) (No) Commissioner Aelion ✓(Yes) (No) Commissioner Gatto (Yes) (No) Commissioner Scholl (Yes) (No) F * FL00. S C�rY OF SUN ra0 TO: City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947 -0606 City Hall (305) 949-3113 Fax (305) 947 -2150 Building Department (305) 947 -5107 Fax MEMORANDUM The Honorable Mayor and City Commission FROM: Minal Shah, Assistant City Manager - Finance DATE: September 20, 2012 RE: Resolution Not Supporting the Passing of Amendment 4. RECOMMENDATION: City Commission Norman S. Edelcup, Mayor Lewis Thaler, Vice Mayor Isaac Aelion, Commissioner Jeanette Gatto, Commissioner George "Bud" Scholl, Commissioner Fred Maas, Acting City Manager Hans Ottinot, City Attorney Jane A. Hines, CMC, City Clerk Staff is recommending City Commission approve the adoption the resolution not supporting Amendment 4 since this would generate additional inequities in the Florida's tax system. REASONS: Amendment 4 is one of the many constitutional amendments that will appear on the November 2012 General Election ballot. Although the official ballot summary is lengthy, the significant impactful components are the following: 1. Reduce the current assessment limitation on non - homestead real property from 10% to 5 %. 2. Give first -time home buyers an additional homestead exemption equal to 50% of the just value of the property up to the County median home value 3. Creates a provision that allow the Legislature by general law to prohibit increases in the assessed value of homestead property if the just value of the property decreases. Ultimately, these components will create further inequities within non - homestead properties where new businesses would pay higher property taxes than like established businesses. More importantly, this will create further inequities within the homestead properties where neighbors with access to the same City services are paying varied amounts. Agenda Item Date - 2c)- 12a