Item O20
Staff Contact: is Hall (M292-347D
AGENDA ITEM WORDING: Approval to advertise a public hearing to consider an ordinance
creating Sections 23-43 through 23-47 of the Monme County Code, to provide a reduction in assessed
value for construction or reconstruction of homesteaded property completed after January 7, 2003 for
the purpose of providing living quarters for parents or grandparents of property owners, pursuant to
F.S 193.703 and the 2002 amendment to the Florida Constitution known as the "Granny Flals"
tr
in the assessed value of homestead property equal to any increase in assessed value of the prop
resulting from the construction or reconstruction of the property for the purpose of providing, livi
quarters for one or more parents or grandparents for whom the living quarters are providing for
are at least 62 years of age, who reside on the property and do not claim a homestead exemption in
other county i
or state.
The estimated fiscal impact is unknown. Twenty-nine counties have reported reductions based on a
local "Granny Flats" ordinance. Based on the results in those counties, the likely impact will be in the
range of $35K to $150K per year in reduced property value revenue although it is possible that the
reduction in revenue could approach $500K.
CONTRACT/AGREEMENT CHANGES: N/A
STAFF RECOMMENDATIONS. -
Approval to advertise and schedule a public hearing for the April 20, 2016 meeting in Marathon.
TOTAL COST: —1800 INDIRECT COST: TBD —BUDGETED: Yes — No 11
DIFFERENTIAL OF LOCAL PREFERENCE: N/A
REVENUE PRODUCING: X AMOUNT PER MONTH— Year
zi
APPROVEDBY: CountyAttyp OMB/Purchasing!�.�Fl RiskManagern
OffCUMENTATION: included __ X -, Not Required —
-1
DISPOSITION: AGENDA ITEili W
ORDINANCE NO. — 2016
AN ORDINANCE RELATING TO AD VALOREM TAXATION,
CREATING SECTIONS 2343 THROUGH 2347 OF THE MONROE
COUNTY CODE, PROVIDING FOR A REDUCTION IN ASSESSED
VALUE OF HOMESTEAD PROPERTY RESULTING FROM
CONSTRUCTION OR RECONSTRUCTION OF LIVING QUARTERS
FOR PARENTS OR GRANDPARENTS OF THE PROPERTY OWNER
OR OWNER'S SPOUSE IF AT LEAST ONE OF THE PARENTS OR
GRANDPARENTS FOR WHOM THE LIVING QUARTERS ARE
PROVIDED IS AT LEAST 52 YEARS OF AGE; REQUIRING DELIVERY
OF THE ORDINANCE TO PROPERTY APPRAISER AND TAX
COLLECTOR; PROVIDING FOR SEVERABILITY; PROVIDING FOR
THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING
FOR INCORPORATION INTO THE MONROE COUNTY CODE OF
ORDINANCES; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on November 5, 2002, voters statewide overwhelmingly approved an
amendment to the Florida Constitution providing for a reduction in assessed value for ad valorem
taxation for qualifying portions of homestead property used as living quarters by parents or
grandparents; and
WHEREAS, this amendment, subsequently incorporated in Art. VII, § 4(e) of the
Florida Constitution, was approved to encourage Florida families to care for their elderly at
home rather than relying on institutions where care is often subsidized by state and federal tax
dollars; and
WHEREAS, the 2002 Legislature adopted HB 313 creating Section 193.703 of the
Florida Statutes providing applicable requirements and procedures for implementation of this
Constitutional Amendment as a county option; and
WHEREAS, the Board of County Commissioners may adopt an ordinance to provide
for a reduction in the assessed value of homesteaded property equal to any increase in assessed
value of the property which results from the construction of reconstruction of the property for the
purpose of providing living quarters for one or more parents or grandparents for whom the living
quarters are providing for and they must be at least 62 years of age; and
WHEREAS, the Board of County Commissioners finds that enactment of an ordinance
providing a tax reduction will encourage Monroe County property owners to care for their
parents and grandparents at home.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA, AS FOLLOWS:
SECTION 1. Article II, Division 3 of the Monroe County Code (sections 23-43 through 23-
�, entitled "Reduction in Assessed Value of Homestead Property for Providing Living
Page 1 of 4
Gunny Flats Ordinance
Quarters for Parents or Grandparents" of the Monroe County Code, is hereby created to read as
follows:
Sec.23-43. Definitions
The following words, terms and phrases, when used in this division, shall have the
meanings ascribe to them in this section, except where the context clearly indicates a different
meaning:
Construction means all types of construction governed by the County's building code.
Primary place of residence shall have the same meaning as "permanent residence" as
defined in F.S. § 196.011 and "permanent residency" as used F.S. § 196.031. The property
appraiser may rely on the factors listed in F.S. § 196.015 in determining whether the property is
the primary place of residence.
Property appraiser- means the County Property Appraiser.
Reconstruction means all types of reconstruction governed by the County's building code.
Section 23-44. Reduction in Assessed Value of Homestead Property.
There is hereby granted to the owner of homesteaded property a reduction in assessed
value of that property equal to any increases in assessed value of the property resulting from the
construction or reconstruction of the property for the purpose of providing living quarters for one
or more natural or adoptive parents or grandparents of the owner of the property, or of the
owner's spouse, if at least one of the parents or grandparents for whom the living quarters are
provided resides therein and is at least 62 years of age. The reduction shall be administered as
provided in F.S. § 193.703 and F.A.C. Chapter 12D-8.0068, as amended from time to time.
Section 23-45. Application.
Every property owner claiming the additional reduction in assessed value must annually
file an application with the Monroe County Property Appraiser. The applicant is required to
complete forms required by the Monroe County Property Appraiser, including an affidavit
regarding the age of the qualifying parent or grandparent and whether the living quarter are being
used as the qualifying parent or grandparent's primary place of residence for the year in which
the reduction is sought. The application must be filed on or before March 1 of each year for
which the reduction in assessment is claimed.
Section 23-46. Application for Assessment Reduction; Requirements.
The assessment reduction provided herein shall only apply if all of the following
requirements have been met:
(a) The property owner(s) must have an existing homestead exemption on the property
Page 2 of 4
Granny Flats Ordinance
where the parent/grandparent quarters are constructed;
(b) A completed application has been timely filed with the property appraiser; and
(c) All required supporting information has been filed with the property appraiser; and
(d) The construction or reconstruction was substantially complete after January 1, 2003
and prior to January 1 in the year in which the reduction is requested; and
(e) At least one qualifying parent or grandparent maintains his or her primary place of
residence in the constructed or reconstructed living quarters on or before January 1 of the
year in which the reduction is claimed and did not claim a homestead exemption elsewhere
in Florida nor a residency -based tax exemption or tax benefit in another state; and
(f) The construction or reconstruction must be properly permitted and must comply with
local land development regulations and the Florida Building Code, as complemented and
supplemented by the Monroe County Code. Copies of permits and certificate of occupancy
must be submitted to the Property Appraiser's Office; and
(g) The assessment reduction shall be applied to the assessed value of the homestead
property as calculated pursuant to § 193.703, F.S.
Section 23-47. Amount of Reduction.
The amount of assessment reduction for the property shall not exceed the lesser of the
following:
(a) The increase in assessed value resulting from construction or reconstruction of the
property to construct or reconstruct the living quarters; or
(b) Twenty per cent (20%) of the total assessed value of the property as improved.
SECTION 2. DELIVERY TO THE PROPERTY APPRAISER AND TAX COLLECTOR.
The Board of County Commissioners, by and through the Clerk, must deliver a copy of this
ordinance to the Property Appraiser and Tax Collector no later than December 1 of the year prior
to the year in which the reduction in assessment will take effect.
SECTION 3. SEVERABILITY. Should any provision of this Ordinance be declared by a
court of competent jurisdiction to be invalid, the same shall not affect the validity of this
Ordinance as whole, or any part thereof, other than the part declared to be invalid. If this
ordinance or any provision thereof shall be held to be inapplicable to any person, property or
circumstances, such holding shall not affect its applicability to any other person, property or
circumstances.
SECTION 4. CONFLICT WITH OTHER ORDINANCES. All ordinances or parts of
ordinances in conflict with this Ordinance are hereby repealed to the extent of said conflict.
Page 3 of 4
Granny Fiats Ordinance
SECTION 5. INCLUSION IN THE CODE OF ORDINANCES. The provisions of this
Ordinance shall be included and incorporated in the Code of Ordinances of the County of
Monroe, Florida, as an addition or amendment thereto, and shall be appropriately renumbered as
needed to conform to the uniform numbering system of the code.
SECTION 6. EFFECTIVE DATE. This Ordinance shall take effect upon filing with the
Department of State as provided in Section 125.66(2), Florida Statutes.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida, at a regular meeting of said Board held on the day of
Mayor Heather Carruthers
Mayor Pro Tem Neugent
Commissioner Kolhage
Commissioner Rice
Commissioner Murphy
(SEAL)
Attest: AMY HEAVILIN, Clerk
By
Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By
Mayor/Chairperson
r
Page 4 of 4
Gunny Fiats Ordinance
Dad and Mom
REDUCTION IN. ASSESSMENT FOR LIVING QUARTERS OF PARENTS OR GRANDPARENTS
PER FLORIDA STATUTE 193.703
• The County of Monroe must adopt an Ordinance to provide for a reduction in the
assessed value of homesteaded property equal to any increase in assessed value of the
property which results from the construction or reconstruction of the property for the
purpose of providing living quarters for one or more natural or adoptive parents or
grandparents of the owner of the property. The property appraiser shall determine the
increase in the just value of the property due to such construction or reconstruction for
that year and each year thereafter. in no year may the assessment reduction, inclusive
and aggregate of all qualifying parents or grandparents, exceed 20°Y of the total
assessed value.
• The reduction in assessed value resulting from the adopted Ordinance shall be
applicable to the property tax levies of all taxing authorities which levy a tax within
Monroe County.
• The property owner must have already qualified for Homestead exemption.
• The qualified parent or grandparent (age at least 62 years of age) must permanently
reside on the property on January 1 of the year the assessment reduction first applies
and each year thereafter.
• The property owner must apply for this assessment reduction annually. The qualified
parent or grandparent cannot claim a homestead exemption or any residency based
assessment reduction on any other property which they may own, whether in Florida or
in another state.
• If an additional construction or reconstruction is built for another parent or grandparent
they may also receive an assessment reduction, however in no year may the total of
applicable assessment reductions exceed 20% of the assessed value of the property.
Reference Fforlda Statute 193.703 and
Florida Administrative Code Property Tax Rules 12D-8.0068
Application form, DR-501PGP
Hall-Cvnthia
From: Lynn O'Connor <LGarcia@mcpafl.org>
Sent: Wednesday, January 20, 2016 6:18 PM
To: Kolhage-Danny, Rice -David; Carruthers -Heather Neugent-George; Murphy -Sylvia; Hall -
Cynthia
Cc: Scott Russell; Denise Knowles
Subject: GRANNY FLATS NOTES
Attachments: REDUCTION IN ASSESSMENT FOR UVING QUARTERS OF PARENTS OR
GRAN DPARENTS.docx
I am writing to you on behalf of my bass's request (Scott Russell, Monroe County Property Appraiser). This is in regards
to a benefit which may help residents of Monroe County. As you can see from past e-mails this has been inquired about
for some time now. I have put together a memo which outlines the basics of this classification (not exemption) which
starts with the passing of an Ordinance by the County.
IIIIIIIII!IIIIIIwI IIIII III 1 11111 1 1 N I I
0�0
Lynn M. O'Connor, CFE
Real Estate Department Supervisor
Mrxiw" Eim'—rty
�305) 292-3492
From: Iawclerk [ma flto: lawclerk-@ Mon roeCounty-FL.Gov]
Sent: Thursday, January 24, 2013 2:53 PM
To: Peters -Katherine; Lynn Garcia
Cc: Shillinger-Bob; Hall Cynthia; Scott Russell
Subject: RE: GRANNY FLATS NOTES - Can find no where in Monroe Cuonty Code or Clerks website where Monroe
County implemented Granny Flats/Grandpa rents Quarters Assessment Reduction per F.S. 193.703 effective 1/7/2003
So it doesn't took like we have adopted this. Also as a note, it cannot be tacked onto the amendment for the additional
senior homestead exemption because that would violate the single subject rule that Florida has. Even though the topics
are similar, It would take another ordinance.
Aaron Rothenberg
Monroe County Attorney's Office
1111 12th Street, Suite 408
Key West, FL 33040
(305) 292-3470
(305) 292-3516 (fax)
. ............
From: Peters -Katherine
Sent: Thursday, January 24, 2013 2:52 PM
To: Lynn Garcia
Cc: Shillinger-Bob; Hall -Cynthia; Scott Russell; lawclerk
Subject: RE: GRANNY FLATS NOTES - Can find no where in Monroe Cuonty Code or Clerks website where Monroe
County implemented Granny Flats/Grandparents Quarters Assessment Reduction per F.S. 193.703 effective 1/712003
From: Lynn Garcia [mailo:L ri c a r]
Sent: Thursday, January 24, 2013 2:48 PM
To: Peters -Katherine
Cc: Shillinger-Bob; Hall -Cynthia; Scott Russell; lawcer
Subject: RE: GRANNY FLATS NOTES - Can find no where in Monroe County Code or Clerks website where Monroe
County implemented Granny Flats/Grandparents Quarters Assessment Reduction per F.S. 193.703 effective 1/7/2003
• Board of County Commissioners may adopt an ordinance to provide for a
reduction in the assessed value of Homestead property equal to any increase in
assessed value of the property which results from the construction or
reconstruction of the property for the purpose of providing living quarters for one
or more parents or grandparents for whom the living quarters are provided for
and they must be at least 62 years of age.
• The reduction in the assessed value shall apply to all taxing authorities
• The construction or reconstruction must have been substantially completed on or
before January 1 on which the assessment reduction is first applied for
• Property owner must be receiving Homestead exemption in order to qualify
• Property owner must apply for this reduction every year
• This reduction is not considered an exemption, but rather a classification
• The Property Appraiser's office shall determine the increase in the just value of
the property due to the construction or reconstruction of the living quarters
which are provided to the parents/grandparents and reduce the assessed value
by that much (each year value will need to be calculated)
• In no year may the assessment reduction exceed 20% of the total assessed
value of the property
• The construction of the living quarters for the parents/grandparents must have
been substantially completed after January 7, 2003, and built for the purpose of
providing living quarters for one or more parent/grandparent
• In determining if the parent or grandparent is the natural or adoptive
parent/grandparent shall rely on any other information that the property
appraiser determines is relevant.
• If the value of the new living quarters are over 20% of the total assessed value
of the property, then property appraiser shall use 20%
• Application form is DR-501PGP
29 Florida Counties who reported property tax reduction as a result of "Granny Flats" ordinance, and
Projected reduction in Monroe County
Miami -Dade 4,338,507
2653934
$1.63
$122,605.92
Palm Beach
4,337,775
1378417
$3.15
$236,019.38
Volusia
3,121,645
510494
$6.11
$458,621.21
Hillsborough
2,925,791
1325563
$2.21
$165,540.47
2,838;D50
1827367
$1.55
$116,481.12
Leon
1,769,143
284443
$6.22
$466,475.62
Seminole
1,573,874
442903
$3.55
$266,515.58
Sa uR0 _ -_
1,$1971
162,925
$7.25
$544,102.04
Escambia
1,168,608
306944
$3.81
$285,542.64
St. Johns
918,903
213566
$4.30
$322,699.89
II►laa n= _ _.w_
}87493
150062
$5.83
$437,315.74
Duval
723,671
905574
$0.80
$59,934.72
Marion
684,986
341205
$2.01
$150,566.23
P�soo _ ,
im 68057firo
487588
$1.40
$104,685.10
Osceola
658,264
308327
$2.13
$160,121.56
Polk
611,964
633052
$0.97
$72,501.63
Cla
60:212�_;
201277
$2.99
$224,365.80
Manatee
601,260
349334
$1.72
$129,087.06
Brevard
584,400
561714
$1.04
$78,029.03
Mo
�� 45437
173,310
$2.62
$196,614.59
Wakulla
251,532
31,283
$8.04
$603,039.99
Sumter
227,812
115657
$1.97
$147,729.06
i'ri_
- 1990
14519
$13.43
$1,007,249.12
Washington
131,975
24975
$5.28
$396,321.32
Madison
116,798
19200
$6.08
$456,242.19
_
Indian River
68,975
14959
143326
$6.44
$0.48
$482,854.80
$36,093.42
Flagler
53,807
101353
$0.53
$39,816.53
61Adfordl , .. _ _
_ _ -_ 341°89
27,310
$1.25
$93,891.43
*Source: Florida Office of Economic Demographic Research, 2015 Population Estimate