A Message from the Orange County Library System

An Update on Property Tax Reform

During a Special Session last June, the Florida Legislature approved legislation which required all special taxing districts, including the Library, to “roll back” their tax revenues to fiscal year 2007 levels and then reduce them 3%. This caused the Library’s millage, or tax rate, to drop 13%. As a result, funding for the current fiscal year is essentially flat and a “Status Quo” budget was adopted. Core services are being offered but several projects, including the expansion of our branch system, were put on hold. For a homeowner with a home assessed at $250,000 and a $25,000 Homestead exemption, the Library tax dropped about $10 as a result of this legislation.

After a judge ruled that the Legislature’s language for its first attempt to put additional property tax reform measures on the January 29, 2008 ballot was misleading; the Legislature again met in Special Session in October and approved the following concepts for the ballot amendment:

• Additional $25,000 Homestead exemption for property values between $50,000 - $75,000
• $25,000 exemption for tangible personal property
• 10% assessment cap for non homesteaded property
• Portability of “Save Our Homes”

If the amendment passes, a very rough estimate is that the Library would lose $5,000,000 in tax revenues, which represents a 14% decrease. The Library is primarily funded from tax revenues, with 86% of its current year’s Operating Fund budget coming from this one source. The immediate impact if the amendment passes would be the elimination of funding for three future branches in areas which currently don’t have a branch library such as East Orange County. Beyond that, all services will be evaluated for further reductions.

Please share your opinion regarding property tax reform and its impact on the Library. Please leave your comments.

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