Sarasota approves property tax break for some homeowners

Senior citizen homeowners on low fixed incomes will get a small property tax break beginning in the 2025 tax year. 

On Monday, the City Commission approved by a 4-1 vote on first reading, with Debbie Trice opposed, a proposed ordinance to increase the city's homestead exemption from $25,000 to $50,000 for income-qualified homeowners ages 65 and older.

In addition to the $50,000 statewide homestead exemption, the city provides a local exemption of $25,000 to certain qualifying, low-income senior homeowners. The Florida Constitution permits counties and municipalities to offer an additional exemption of up to $50,000. 

At the April 15 City Commission meeting, Erik Arroyo presented a proposal to double the exemption amount. The commission directed the City Attorney's Office to draft an ordinance establishing this increase.

Assistant City Attorney John Shamsey told commissioners the ordinance applies only to homeowners with a household income that does not exceed $36,614, a number that is annually adjusted by the Florida Department of Revenue, generally upward.

Trice’s opposition was rooted in that the tax break is limited to low-income homeowners and not available to renters, and that it results in lower revenue to the city.

“It's not a zero-sum game,” Arroyo said. “Just because property owners gain something that's helping low-income property owners, who are seniors, gain something does not mean that renters necessarily lose. It's not one has to win at the expense of the other. 

“I think if we can help out some of our residents, who just happen to be homeowners, I think we should.”

Responded Trice, “It is a zero-sum game in that it’s taxable, and if the taxable value is reduced because homestead exemption is increased, the city's revenue will go down and we will either have to reduce some services or we will have to increase the millage rate. So that's why it's a zero-sum game.”

City Manager Marlon Brown told commissioners the increased exemption on income- and age-qualifying homeowners impacts the budget in the amount of about $20,000 per yer.

“Yes, you can make up that $20,000 by raising the millage, or you can not adopt this,” Brown said, adding the difference can be made up somewhere in the general fund.

To apply, qualifying property owners seeking the additional exemption for the first time must submit by March 1, 2025 to the Sarasota County Property Appraiser a sworn statement of their household income and any additional documents that are required. Property owners who already have an exemption in the prior year are required to annually confirm that their situation has not changed to maintain the exemption.