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Poor Seniors' Tax Cut May Rise

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By MIKE SALINERO, The Tampa Tribune

Published: September 7, 2007

TAMPA - Low-income seniors in Hillsborough County probably will get an additional property tax reduction of about $87 per household starting in 2008.

The county commission, in a preliminary 4-2 vote, agreed to add $15,000 to the $50,000 homestead exemption for low-income seniors. Recipients have to be 65 or older with an annual household income of $24,000 or lower. The board must hold a public hearing on the change, probably in October, before taking a final vote.

Commissioner Brian Blair had proposed last week to make the additional exemption $25,000, but he agreed to scale it back because of uncertainty over revenue in coming years.

Principally, commissioners are worried about a referendum in January on an amendment that would give homeowners a homestead superexemption of 75 percent of the first $200,000 of a home's value and 15 percent of the next $300,000. If the amendment passes, homeowners could choose between taking the additional exemption or keeping their 3 percent 'Save Our Homes' property tax cap.

The county had to make deep budget cuts this year and laid off 489 workers because of a state-mandated property tax rollback. Budget Director Eric Johnson said he expects the county will have to reduce the budget further in the next few years, meaning money for a number of popular programs would have to be cut.

'There is so much uncertainty about what we will be facing in that 2008 fiscal year,' Johnson said. 'I'm sure the Legislature will have more tax reform in store for local governments, regardless whether the constitutional amendment passes of fails.'

Johnson said he does not know how many seniors are eligible for the latest exemption or how many eligible households will sign up for the break. The county is estimating the exemption will reduce countywide revenue by about $500,000.

'You lose a half million dollars, you lose a half million dollars' worth of programs,' Johnson said.

Blair insisted the money to cover the tax break is safely stowed away in what he called a millage reduction fund.

Johnson said that money went toward the property tax rollback passed this year. Whether the fund is replenished depends on how the county commission wants to deal with future budget cuts, Johnson said.

Commissioners Rose Ferlita and Kevin White voted against the tax break. White said he worries that if the seniors get the additional local exemption plus the superexemption, it could present budget problems for the commission.

Ferlita said the extra exemption, while saving seniors a few bucks, could force the commission to reduce senior services.

Blair countered that no services would be reduced because the reduction is small and can be covered by the millage reduction fund.

'I don't think they should pay a dime in property tax,' he said.

Reporter Mike Salinero can be reached at (813) 259-8303 or msalinero@tampatrib.com

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