PLACEMENT: Consent
TITLE:
title
REQUEST APPROVAL OF A RESOLUTION BY THE BOARD OF COUNTY COMMISSIONERS TO OPT-OUT OF AD VALOREM PROPERTY TAX EXEMPTION UNDER FLORIDA STATUTES § 196.1978(3)(O) FOR THE 2025 TAX ROLL
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EXECUTIVE SUMMARY:
executive summary
Staff is presenting a draft resolution to be considered by the Board of County Commissioners of Martin County to opt-out of the middle-income affordable housing exemption. Staff has determined that Martin County meets the criteria necessary to be eligible to execute an opt-out tax exemption provision as provided by Section 196.1978(3)(o), Florida Statutes.
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DEPARTMENT: Administration
PREPARED BY: Name: George M. Stokus
Title: Assistant County Administrator
REQUESTED BY:
PRESET:
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
The Martin County Board of County Commissioners (BCC) has raised several concerns with the “Live Local Act” and more specifically the property tax exemption for affordable housing units, which requires the Martin County Property Appraiser to exempt certain rental properties from ad valorum taxes. The tax exemption only applies to affordable housing multifamily rental units that meet the specific criteria found in Section 196.1978(3) of Florida Statutes. The statute was amended to allow taxing authorities to opt out of certain exemptions in the statute. Specifically, the County can opt out of the tax exemption established by Florida Statutes § 196.1978, which provides a 75% ad valorem property tax exemption for multifamily affordable housing projects which are leased to tenants with income of more than 80% but not exceeding 120% of the median income. This amendment would not have impacted any exemptions given for the 2024 tax roll year; however, none were granted in Martin County. In addition, the opt-out provision does not apply to units occupied by tenants with 80% or less of median income, which is eligible for a 100% tax exemption.
ISSUES:
Martin County has emphasized that the 80-120% AMI tax exemption does not address Martin County’s greatest need for affordable housing. The 80-120% tax exemption also adversely affects Martin County’s ability to provide essential public services to the increased number of residents and the increased demand for municipal services without a reciprocating payment method for the demanded services.
In 2024 the Florida Legislature adopted a change to the Live Local Act and the associated Property Tax Exemption as a part of the tax package bill (CS/HB 7073). The legislation creates a new Section 196.1978(3)(o), Florida Statutes, which beginning with the 2025 tax roll, allows taxing authorities to annually opt-out of the 80-120% Tax Exemption. Under this amendment, the County can opt out if it has an adequate supply of affordable housing. A County is deemed to have an adequate supply of affordable housing if the latest Shimberg Center for Housing Studies Annual Report (Florida Statutes § 420.6075) concludes there are more affordable rental units in the County than the number of renters at or below the 120% of median income. The opt-out election must be evaluated and voted on by the Board each year and approved by 2/3’s of the Board.
The 2023 Shimberg Report (attached) identifies a surplus of affordable and available units in the Port St. Lucie MSA, in which Martin County is located, for those households that meet the income criteria for the 80-120% tax exemption (Pg. 32 of the Report). Therefore, Martin County is permitted to opt out of the 80-120% tax exemption for 2025 tax roll. The adoption of the resolution requires a 2/3s vote of the governing body, which for Martin County is four (4) votes. The resolution can be renewed annually if Martin County continues to meet the “affordable and available” criteria in the opt-out provision as set forth by statute.
LEGAL SUFFICIENCY REVIEW:
This item has been reviewed for legal sufficiency to determine if it is consistent with applicable law, and in so doing, legal staff has identified risks and developed strategies for legal defensibility, as applicable.
RECOMMENDED ACTION:
RECOMMENDATION
Move that the Board approve the Resolution opting-out of the 80-120% tax exemption.
ALTERNATIVE RECOMMENDATIONS
Pull this item from the Consent Agenda and provide staff with further direction.
FISCAL IMPACT:
RECOMMENDATION
This resolution protects the County from unknown future Ad Valorum exemptions.
ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☐Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☒Resolution
☒Other: Letter to Property Appraiser
This document may be reproduced upon request in an alternative format by contacting the County ADA Coordinator (772) 320-3131, the County Administration Office (772) 288-5400, Florida Relay 711, or by completing our accessibility feedback form at www.martin.fl.us/accessibility-feedback <http://www.martin.fl.us/accessibility-feedback>.