Port St. Lucie debates tax relief for poor elderly

PORT ST. LUCIE — In eight years, Florida voters have twice enthusiastically supported property tax breaks for poor senior citizens, but 3,556 eligible city residents haven't seen their city tax bills drop by one dime as a result.

Mayor Patricia Christensen would like to rectify that, especially since the city has never complied with the first voter referendum in 1998 that authorized local governments to extend an additional $25,000 homestead exemption to residents 65 and older whose household income is less than $20,000 yearly.

Voters in November ratified a second $25,000 shield to elderly residents, meaning local governments that enact both measures would extend a $75,000 homestead exemption to low-income seniors. Although past city councils declined to extend the initial $25,000 tax shield to eligible taxpayers, fearing it would rake too much money from their annual coffers, Christensen said she wants to explore the impact and afford the greatest tax cut possible to those most in need.

"It's the least we can do now that the second exemption has passed," Christensen said. "To some people it would mean a lot."

St. Lucie County commissioners in 2002 ratified the 1998 voter amendment, voting to gradually phase in the full $25,000 exemption over five years. Property Appraiser Jeff Furst told Christensen there are 3,556 low-income seniors in Port St. Lucie who receive the exemption on county tax levies.

If all 3,556 eligible city residents received an additional $25,000 homestead exemption on the city portion of their tax bill, it would reduce the city's property tax revenues by $391,160, given a tax rate of $4.44 per $1,000 of taxable property value.

Extending the additional $50,000 exemption would double that loss to $782,320, assuming all eligible residents owned property with taxable property values of at least $75,000 each.

Other city council members are mixed on the plan, with Councilman Christopher Cooper opposed and Councilwoman Linda Bartz undecided. Councilwoman Michelle Berger supports both tax breaks, and Vice Mayor Jack Kelly said he'd like to phase in the breaks, much as the county is doing.

"There's a small portion of people who fall into that category," Berger said. "I don't need to be hit over the head three times. I'm a proponent of actually listening to what the voters want."

Cooper said granting special interest groups tax breaks simply shifts the burden onto other taxpayers, some of whom may be needier than the ones receiving the benefit.

"We need to go back and revisit the entire homestead exemption program to make it fair for everyone," Cooper said. "For us to grant people exemptions based on their age, income, military status and everything else, is not the answer."

Christensen said she will schedule a council discussion on the topic after receiving more information about the financial effects.

City Manager Don Cooper said he considers the tax loss minimal given the city's $62 million general fund budget, which depends largely on property taxes. "It never helps, but it's not the end of the world," he said.

By Teresa Lane
Palm Beach Post Staff Writer
Sunday, January 14, 2007