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Highlands Today

Hearing Set On Low-Income Seniors Homestead Exemption

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By JIM KONKOLY

Highlands Today

Published: November 17, 2008

SEBRING - The Highlands County commissioners appear evenly split - two for, two leaning against and one undecided - on raising the low-income senior homeowners Homestead exemption.

At their meeting Tuesday, they will hold a public hearing on the issue.

This tax break, for homestead homeowners age 65 and up with a household income of $24,916 or below, was set at $5,000 off the taxable value of a home when it was initiated in 2001 and hasn't been changed since.

State law allows this exemption to be set by counties or cities at up to $50,000.

Each $5,000 granted in this exemption gives the homeowner a tax reduction of $35.50. Based on the 1,686 senior households getting this tax break now, each $5,000 of exemption drops county revenue by $56,833, according to the county Office of Management and Budget.

Commissioners are considering a proposed $10,000 increase in this exemption, raising it to $15,000 off the taxable value, but could raise or lower that amount.

Commissioner Edgar Stokes could have the deciding vote if this issue comes up for a vote later in the year. He said he voted last month to schedule Tuesday's public hearing but is not committed either for or against changing this tax break.

"I was in favor of hearing more" about the issue, Stokes said.

Commissioner Guy Maxcy said he supports the increased exemption and Commissioner Don Bates said he favors it.

Meanwhile, Commissioner Barbara Stewart said she doesn't support tax breaks for any one group of taxpayers. And commissioner-elect Jeff Carlson, who will be sworn into office Tuesday, said he has serious reservations about supporting any tax relief that doesn't go to all taxpayers.

"You always have to reserve judgment until the public hearing, but I'm looking favorably on it at this point," Bates said about raising the exemption to $15,000.

Last month, Stewart cast the lone "no" vote on scheduling the public hearing.

"I spoke against it the last time because to me it's an issue of fairness, and I don't like carving out (a tax benefit) for one group," she said. "I just don't think that's fair to do."

Low-income seniors who rent don't get this exemption and pay the full tax bill through their rent, she said.

"I think all of us would agree that the property tax structure in the state of Florida is not the most equitable and it needs to be addressed," Stewart said. "But to me it doesn't solve things by continuing to carve out special groups and giving them preferential treatment."
Maxcy said he supports the $10,000 increase in this exemption because "we need to find ways to help our needy seniors, they are at the bottom of the totem pole when it comes to income. And those are the folks we have got to continue to strive to help."

Carlson said he strongly questions tax breaks that don't help every property owner.

"My opinion is that instead of carving out any one special interest group for an exemption, I would rather find a way to reduce taxes for everyone," he said.

Low-income senior homeowners may deserve tax relief, Carlson said, but so do many others facing financial struggles, including young families where one or both of the parents have lost jobs.

"I'm going to reserve judgment until the public hearing," Carlson added. But, he said, "I would rather find a way to share it (tax relief) across the board instead of carving out an exemption for any one group, which is what I have been saying when I was asked over the past months."

Eroni DeOliveira of Sebring is one of the seniors who has asked commissioners to raise the low-income senior exemption over the past several months. In October, he asked commissioners why Highlands County sets this tax break lower than most counties.

Fifty-six of the state's 67 counties give this tax break, he said. Of those, he said, 12 counties set the exemption at the full $50,000, one county at $41,700, 37 counties at $25,000, one county at $20,000, and two counties at $10,000. Highlands County is one of three that set this tax exemption at $5,000, he said.

"To me, I see this as very simple, it's a matter of fairness and it has to do with compassion, and with love for one's brothers, with sympathy for another one's needs," he said.

DeOliveira said he qualifies for the exemption but hasn't filed for it because the $35 per year savings doesn't amount to the real tax relief allowed under the law.

"I consider myself somewhat lucky, privileged actually, in comparison to other people who don't even have money for medicines, for gas," he said. Many fixed-income seniors are struggling to hang on to their home and deserve the full $50,000 exemption, he said.

"Some people have a hard time paying their utilities," he said. "There are people in worse situations and I think of these people, and they (commissioners) should too."

Jim Konkoly can be reached at 863-386-5855 or e-mail jkonkoly@highlandstoday.com

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