Item 8BCity of Southlake, Texas
MEMORANDUM
November 25, 2003
TO: Billy Campbell, City Manager
FROM: Sharen Elam, Director of Finance, Ext. 1713
SUBJECT: Ordinance No. 859, I Reading, Amending Article III, "Property Taxes ", of
Chapter 17, "Taxation" of The City Code, as amended, by adding a new section
17 -63 relating to Ad Valorem Tax Freeze for Residential Homestead Property
owners who are disabled or 65 years of age or older.
Action Requested: City Council approval of Ordinance No. 859, Amending Article III, "Property
Taxes ", of Chapter 17, "Taxation" of The City Code by adding a new section
relating to Ad Valorem Tax Freeze for Residential Homestead Property owners
who are disabled or 65 years of age or older.
Background
Information: On September 13, 2003, the voters approved Article VIII, Section 1 -b,
subsection h, of the Texas Constitution that allows municipalities and certain
other taxing entities to establish an ad valorem tax freeze on residence
homesteads of disabled individuals or individuals age sixty -five or older. If the
City Council approves Ordinance No. 859, the tax freeze will be effective
beginning with tax year 2004. Based on the January 2003 values, the city has
approximately 100,236,341 of appraised value owned by disabled or age sixty -
five or older residents. This value equates to approximately $463,092 property
tax revenue that would be frozen if Council chooses to permit the tax freeze.
One item to note is the taxes on the residence may be increased to the extent
the value of the homestead is increased by improvements other than repairs
and other than improvements made to comply with governmental
requirements.
Financial
Considerations: The proposed ordinance would freeze property tax revenue of approximately
$463,092 (100,236,341 value).
Citizen Input/
Board Review: Public Hearing is scheduled for December 16, 2003.
Legal Review: The City Attorney has reviewed the ordinance.
Alternatives: Approve or deny proposed ordinance
Supporting
Billy Campbell, City Manager
November 25, 2003
Documents: Ordinance No. 859
Staff
Recommendation: Consideration of Ordinance No. 859
Billy Campbell, City Manager
November 25, 2003
ORDINANCE NO. 859
AN ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS, AMENDING
ARTICLE III OF CHAPTER 17, "TAXATION" OF THE SOUTHLAKE CITY
CODE OF ORDINANCES AS AMENDED BY ADDING A NEW SECTION 17-
63 RELATING TO AD VALOREM TAX FREEZE FOR RESIDENTIAL
HOMESTEAD PROPERTY OWNERS WHO ARE DISABLED OR 65 YEARS
OF AGE OR OLDER; PROVIDING THAT THIS ORDINANCE SHALL BE
CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY
CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Southlake, Texas is a home rule city acting under its charter
adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and
Chapter 9 of the Local Government Code; and
WHEREAS, as approved by the voters of the State of Texas at an election held on
September 13, 2003, Article VIII, Section 1 -b, subsection h, of the Texas Constitution allows
municipalities and certain other taxing entities to establish an ad valorem tax freeze on
residence homesteads of disabled individuals or individuals age sixty -five or older; and
WHEREAS, effective January 1, 2004, Section 11.261 of the Texas Tax Code
governs the procedure under which a municipality or other taxing entity may adopt an ad
valorem tax freeze; and
Billy Campbell, City Manager
November 25, 2003
WHEREAS, the City Council believes it would be in the best interest of the citizens
of Southlake to provide for a tax freeze on the amount of property taxes on the homesteads of
disabled individuals or individuals age sixty -five or older, beginning with tax year 2004.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF SOUTHLAKE, TEXAS:
SECTION 1.
Chapter 17, "Taxation ", of the Code of Ordinances is hereby amended to add a new section
17 -63 to Article III "Property Taxes ", which shall read as follows:
"Sec. 17 -63. Residence Homestead tax freeze for elderly or disabled people.
(a) Effective with tax year 2004, the total amount of ad valorem taxes imposed on
the residence homesteads of a person who is disabled or is sixty -five years of
age or older shall not be increased while it remains the residence homestead of
that person or that person's spouse who is disabled or sixty -five years of age or
older.
(b) If the person who is disabled or is sixty -five years of age or older dies in a year
in which the person received a residence homestead exemption, the total amount
of ad valorem taxes imposed on the residence homestead shall not be increased
while it remains the residence homestead of that person's surviving spouse if the
spouse is fifty -five years of age or older at the time of the person's death.
(c) Notwithstanding subsections (a) and (b), taxes on the residence homestead may
be increased to the extent the value of the homestead is increased by
improvements other than repairs and other than improvements made to comply
with governmental requirements."
SECTION 2.
The City Secretary shall forward to the Comptroller of the State of Texas by
United States Certified Mail a certified copy of the ordinance.
Billy Campbell, City Manager
November 25, 2003
SECTION 3.
This ordinance shall be cumulative of all provisions of ordinances and of the
Code of Ordinances of the City of Southlake, Texas, as amended, except where the
provisions of this ordinance are in direct conflict with the provisions of such
ordinances and such Code, in which event the conflicting provisions of such
ordinances and such Code are hereby repealed.
SECTION 4.
It is hereby declared to be the intention of the City Council that the phrases,
clauses, sentences, paragraphs, and sections of this ordinance are severable, and if any
phrase, clause, sentence, paragraph or section of this ordinance shall be declared
unconstitutional by the valid judgment or decree of
any court of competent jurisdiction, such unconstitutionality shall not affect any of the
remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since
the same would have been enacted by the City Council without the incorporation in
this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or
section.
Billy Campbell, City Manager
November 25, 2003
SECTION 5.
This Ordinance shall take effect on January 1, 2004, and applies only to ad
valorem taxes imposed on or after that date.
PASSED AND APPROVED ON FIRST READING THIS 2 ND DAY OF
DECEMBER, 2003.
PASSED AND APPROVED ON SECOND READING THIS 16 DAY OF
DECEMBER, 2003.
Mayor
ATTEST:
CITY SECRETARY
APPROVED AS TO FORM AND LEGALITY:
CITY ATTORNEY