OFFICE OF
THE CITY COUNCIL
117 WEST DUVAL STREET,
SUITE 425
4TH FLOOR, CITY HALL
JACKSONVILLE, FLORIDA 32202
904-630-1377
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
6.7.17