Finance Committee Special Meeting Minutes

June 7, 2017

Immediately following 9:00 a.m. Finance Committee meeting


Topic: Property Appraiser’s annual report


Location: City Council Chamber, 1st floor, City Hall – St. James Building, 117 West Duval Street


In attendance: Council Members Anna Lopez Brosche (Chair), Matt Schellenberg, Aaron Bowman, Katrina Brown, Bill Gulliford

Excused: Council Members Greg Anderson and Sam Newby


Also: Kyle Billy and Kim Taylor – Council Auditor’s Office; Paige Johnston – Office of General Counsel; Jeff Clements  – Council Research Division; Crystal Shemwell and Adri Segui – Legislative Services Division; Jessica Baker – Mayor’s Office; Jerry Holland – Property Appraiser


Meeting Convened: 10:28 a.m.


Chairwoman Brosche called the meeting to order and called on Property Appraiser Jerry Holland to present his office’s annual report for 2017. Mr. Holland reported that property values (both real estate and tangible personal property) have been trending upward over the last 5 years, with total just value of all types of property increasing from $92 billion in 2016 to $96 billion in 2017. Ad valorem taxes based on those values produce approximately 61% of the City’s General Fund revenue. He explained that the approximately $27 billion in fair market value that is shielded from taxation by the Save Our Homes provisions costs the City $300 million in revenue. That figure would increase by another $26 million should the voters approve the additional $25,000 homestead exemption approved by the Legislature and appearing on the general election ballot in 2018. The upside of the Save Our Homes process, from the perspective of local governments, is that the “catch-up” provision of the act that allows a portion of the deferred taxable value of homestead properties to become taxable each year based on a maximum of either a 3% increase or the Consumer Price Index, whichever is smaller provides a small annual increase in taxable value even in years when the assessed value of a property may decrease, thus cushioning local budgets somewhat.


Mr. Holland reported that Jacksonville’s percentage of total fair market value that is non-taxable due to being owned by a governmental entity or not-for-profit organization is approximately 40%, which is higher than the 30-32% rate found in other similar large Florida counties. Part of the reason is that only one of Jacksonville’s many hospitals is a for-profit entity and therefore taxable; the others are all not-for-profits. Also, Jacksonville’s electric utility (JEA) is a public utility and therefore not taxable unlike counties served by FPL or TECO. Council Member Schellenberg requested an estimate of what the JEA’s real and personal property would produce in taxes if it were a taxable, for-profit utility. Regarding tangible personal property, Mr. Holland reported that only 11,000 of the 31,000 tangible personal property accounts are taxable. He also noted that future Property Appraiser annual reports will contain statistics on the Value Adjustment Board process, including how many appraisals are challenged, how many are resolved administratively at the Property Appraiser’s office, how many are handled by the VAB, and how those appeals are resolved.



Meeting Adjourned: 11:05 a.m.


Minutes: Jeff Clements, Council Research

            6.7.17   Posted 1:30 p.m.

Tapes:  Finance Special Meeting– LSD