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Homestead help on the way for seniors

If it's approved, low-income seniors in Seminole are to get an extra $10,000 break, which could be increased later.

By ANNE LINDBERG
Published March 2, 2005

SEMINOLE - This city is poised to become the fifth municipality in Pinellas County to give low-income senior citizens an extra break on their property taxes.

Seminole council members unanimously agreed Tuesday to give some seniors an additional $10,000 a year homestead exemption. Council members are expected to hold a public hearing and two votes on the issue next month.

The decision thrilled Seminole activist Linda Cole, who had lobbied the council for the change. At Tuesday's workshop, Cole was accompanied by about 40 residents of Seminole Gardens Apartments, who applauded the council's decision.

"It's really about them," Cole said, referring to the Seminole Gardens residents.

Cole said she hears stories "day in, day out" about the difficulties some of the residents have making ends meet. If the council grants the homestead exemption, it will make life a little easier for those folks, she said.

A few years ago Florida voters altered the state Constitution so cities and counties could offer up to $25,000 as an additional homestead exemption for poor seniors. Only four Pinellas cities - Dunedin, Safety Harbor, St. Pete Beach and St. Petersburg - have opted to do so.

Others, like Pinellas Park, have turned the idea down, saying it was too hard to know the impact on the budget. City leaders feared that a huge tax loss would mean the property tax rate would have to be increased to make up for it.

Seminole also struggled with that.

City Manager Frank Edmunds gave the council a chart estimating the tax loss given several scenarios.

Seminole's budget would take the smallest hit if the council granted an additional $5,000 exemption and only 150 seniors qualified. The tax loss would be $2,205 per year, according to city figures.

The worst-case scenario Edmunds presented showed a $40,420 annual reduction in Seminole's property tax income. That would happen if the council granted an additional $25,000 exemption and 550 low-income seniors took advantage of it.

The situation could be worse, he cautioned, if more seniors claimed the exemption.

"A (large) reduction in revenue may have an impact on city operations," he said. "It may be hard to cover from other sources."

Council members were cautious. The budget, they said, could handle the loss of revenue if they granted an additional $10,000 a year exemption to low-income seniors. The city budget would sustain an estimated loss of $4,409 to $16,168. That would give officials a chance to see how many people claim the exemption. The exemption could be raised later, if things looked good.

Seniors would get about $30 extra in their pockets each year.

Karola Heyen asked the council to grant the exemption. The extra $30 a year does not sound like much, she said, but it can buy prescription drugs or other essentials.

"I think maybe our community is rich enough that we can give the people who really need this a break," Heyen said.

Francis Halter, a senior resident of Seminole Gardens, also urged the council to adopt the additional exemption. The tax rate may have remained the same, he said, but taxes have gone up because property values have increased.

"The senior citizen today, he's lucky to keep his home," Halter said. "We're getting beat up in every way."

Edmunds told the audience that the change would not happen quickly. The council would not be able to vote on the issue until next month. Then, it would not take effect until November 2006, he said.

[Last modified March 2, 2005, 00:47:18]