Barkley explains changes to Homestead Exemption Act

On May 21, Governor Robert Bentley signed into law the “2013 Homestead Exemption Act” which effectively repeals most of the “2012 Homestead Exemption Act,” and sets new qualifying guidelines for those taxpayers claiming ad valorem tax exemption based on 65 years of age, those being permanently and totally disabled regardless of age, orthose who are blind regardless of age. The provisions of the 2013 Act apply to the tax year beginning Oct. 1, 2012, and taxpayers seeking the exemption have until July 31 of this year to claim the exemption by bringing the required documentation (proof of disability or proof of income) to the Revenue Commissioner’s Office. While most taxpayers provided proof of disability and federal income earnings as required to recertify their exempt status prior to Jan. 1, there are still some residents who now have until July 31 to prove their exemption and not lose their exempt status. The Revenue Commissioner’s Office will assist anyone who seeks help in claiming the exemptions. Just remember the tax lien date is still Oct. 1, 2012, meaning the taxpayer must have met the qualifications for which they are claiming as of that date and after Aug. 1 there will be no exceptions for making a late claim. The 2013 Act provides a total exemption from ad valorem taxes on the principal residence and 160 acres adjacent thereto of any resident of this state who is 65 years of age or older, provided the net annual taxable income for the person claiming the exemption and that of his or her spouse is $12,000 or less as verified by the latest United States income tax return or some other appropriate evidence, or who is permanently and totally disabled regardless of income or age. The 2013 Act removed the income threshold from the exemption for the disabled so that now only those persons claiming the exemption based on being 65 years of age or older are required to meet the income limitation. Any taxpayer who lost the exemption due to the income threshold, who previously had total exemption granted based on the taxpayer’s permanent and total disability, will have the exemption reinstated without the necessity of additional documentation. The 2013 Act also provides that those persons seeking exemption based on disability status who are not drawing a disability pension or annuity from the armed services, a private company or any governmental agency, may establish their disability status by providing proof of such permanent and total disability by submitting written affidavits by any two physicians licensed to practice in this state, provided that at least one of these physicians is actively providing treatment directly related to the permanent and total disability of the person seeking the exemption. The requirement that at least one of the physicians be actively providing treatment applies to any person applying for the exemption for the first time after the passage of the 2013 Act. Any person who qualified to receive the exemption prior to the 2013 Act by submitting certification by two physicians will continue to receive the exemption based on the letters already provided and will not be required to resubmit any physicians’ letters. In addition, the 2013 Act provides a penalty assessed to anyone who knowingly and willfully gives false information for the purpose of claiming a homestead exemption. Those found in violation shall be ordered to pay twice the amount of any ad valorem tax which would have been due retroactive for a period of up to 10 years plus interest at the rate of 15 percent per annum from the date the tax would have been due. As the tax year of 2013 moves toward the final assessments prior to tax notices and the collection process, I cannot stress enough the importance of being aware of the homestead exemptions available and making a claim for these exemptions prior to Aug. 1, 2013.

Rouson faces tax troubles on Tallahassee condo In 2010, state Rep. Darryl Rouson bought a townhouse in Tallahassee. Since then, he has missed three years of property tax payments, falling so far behind that the unit soon could be put up for auction. That's not all. Last fall, Rouson borrowed $20,000 from a relative using his already heavily mortgaged St. Petersburg home as security. And this spring, Rouson parted ways with the Tampa law firm of Morgan & Morgan, which had been paying him as much as $565,000 annually. Is Rouson, the future House Democratic leader, in financial straits again? "No, other than someone who just loses their main source of income in the last couple of weeks,'' Rouson, 58, said Tuesday. A hard-charging lawyer who said he was once addicted to crack cocaine, Rouson declared bankruptcy in 2002 while owing $360,000 to the IRS. He was still in bankruptcy proceedings when he and his wife Angela borrowed money to build a two-story, 4,400-square-foot home that they later refinanced for more than $550,000. More here.

Highlights of the House Omnibus Tax Bill

The Minnesota House of Representatives passed a tax bill early Monday morning that aims to balance the budget. The bill asks the state's wealthiest taxpayers to pay for education, property tax relief and job creation. Below are highlights of the bill: $400 million in property tax relief for the middle class through the Homestead Credit Refund, an expanded Renter's Credit and increased aid to local government. Institutes a one year levy limit for certain cities and counties, holding most new local levies to 3 percent or less. $234 million per-pupil increase in school funding formula. $485 million for E-12 education for all-day kindergarten, preschool scholarships and new funding for every Minnesota school. $250 million for higher education, including a tuition freeze at the University of Minnesota and MnSCU schools, plus significant new resources for the student grant program. $89 million for jobs and economic development to promote private sector job creation throughout the state. Aims to close the $626 million budget deficit. Raises the income tax rate to 9.85 percent on the wealthiest 2 percent of taxpayers, with income greater than $250,000 a year for joint filers. Increases the user-based fees on cigarettes by $1.60 per pack to $2.83 per pack - catching up with Iowa, South Dakota and Wisconsin. Here is additional information about the legislative session endin

Township asks for 34 percent property tax hike

Quincy Township is asking for a 34.1 percent increase in its property tax levy because officials said its surplus funds have been depleted in recent years because of rising costs and declining revenue. It would be the first increase in the township's tax levy in seven years. The township is asking that the levy be increased to $344,134, from $256,625. If approved, the increase would add $4 to the township portion of property tax bills for the owner of a $100,000 home, based on projections. "We basically have a bare-bones budget for 2013-14, and we've been using surplus for the last six or seven years," said township Supervisor Steve Schrage, who is retiring after 24 years with the office. "With the decrease of the personal property replacement tax, that's obviously cut into our surplus, and we're to the point now where we have to do something." Quincy aldermen, who also sit as the Town Board, last year approved a $715,376 township budget that was $28,000 lower than the previous year. The budget for fiscal 2014 is $39,000 less, or about $676,000, despite the proposed levy increase. Schrage said one part-time employee will replace a full-time employee. The township also eliminated the deputy township treasurer stipend and reduced travel expenses. He said he asked for a levy increase two years ago when surplus funds began to get low but could not get support from aldermen. Meanwhile, Gerry Timmerwilke, legal counsel for the township, told aldermen Monday night during a public budget hearing that Social Security, pension and health insurance costs continue to rise while revenues have dipped. Timmerwilke said the township received about $364,000 from the personal property replacement tax from the state during fiscal 2008, a number that fell to $282,870 last year. The City Council will consider the levy along with the township's budget at its May 28 meeting. The township runs the general assistance program, which helps people with rent, utility, household and medical expenses. It also runs an emergency assistance program for residents and a separate program for seniors. The township also has a representative payee program to help manage finances for disabled people who are unable to manage their funds. The Quincy Township assessor's office handles property assessments on 16,500 properties in the county. Cindy Brink, who ran unopposed to replace Schrage as township supervisor, was sworn in May 6, but she doesn't officially begin her duties until Monday, May 20.

New Jersey Tax Cut Compromise Possible

Governor Chris Christie wants to cut income taxes by 10% for every New Jerseyan. Senate Democrats want to cut property taxes by 10% and Assembly Democrats have a plan they say can provide a 20% property tax cut for those who need it most. NJ Assembly Democrats Facebook The latter plan would be partially funded through a millionaires’ tax increase that Christie vows to veto, but the Assembly budget boss says there’s room for compromise. Early last week, the State Treasurer reported a $230 million revenue shortfall and another $121 million shortage was reported Wednesday. Christie’s $32.1 billion proposed budget relies on 7.3% revenue growth. Yesterday, the credit rating agency Moodys put out a less than flattering statement regarding Jersey’s fiscal situation. It read, part, “Without any cuts, deferrals, or one-time revenues, a $230 million decrease in projected reserves would leave the state with a narrow $358 million (1.2% of budgeted revenues) ending balance. This would be lower than in any of the past five years, when the state’s balances ranged between $500 million in fiscal 2008 and $870 million in fiscal 2011. The revenue shortfall has reduced liquidity over the past fiscal year, and the state has relied on inter-fund borrowing to support operations, although the amount has remained relatively small. The state maintains approximately $800 million of reserves outside the General Fund that are available for internal borrowing.” The report did not take into account the $121 million shortfall because those monies are outside the general fund and obligated to spending elsewhere. The sagging revenues put every tax cut plan in jeopardy. “There’s room for negotiation,” says Democratic Assembly Budget Committee chairman Vinnie Prieto. “Obviously we have to live within our means so obviously we have to have the money there.” Prieto says if the state can’t afford to support the Assembly Democrats’ 20% property tax cut plan, that doesn’t mean the proposal is dead. He explains, “If it’s not 20%, if it’s 15% then that’s what it will be, but we have to get the money back to the residents…..If it’s 18%, 16%, whatever…That would be something that’s real.” The Assembly Democrats proposal would provide a property tax relief credit through the gross income tax return, for all residential homeowners with incomes up to $250,000 in the amount of 20% of the first $10,000 in property taxes paid. To pay for the new revenue needed for the middle-class and lower-income property tax relief under the Assembly Democrats’ plan, the state’s income tax rate for those earning more than $1 million would be increased beginning next fiscal year. The rate would go from 8.97 percent to 10.75 percent. This would impact about 16,000 out of about 2.6 million filers and raise $800 million at the plan’s full implementation in fiscal year 2016. And, that’s where the problem lies because Christie hasn’t been shy about his thoughts on that particular tax increase. In his budget message, the Governor said, “We have eliminated the special surtax that for a time gave New Jersey the highest marginal tax rate in the nation – and I am proud to have twice vetoed the effort to re-introduce it. And just so there is no mistake in my intention: I will veto any tax increase again.” Townsquare Media was the first to report that under a new plan proposed by State Senate President Steve Sweeney, a family earning $50,000 a year would save, on average $600, and a family earning $100,000 a year would save an average of $800; millionaires would get absolutely zero. Under the governor’s proposed income tax scheme, a family earning $50,000 a year would only save $80.50, and a family earning $100,000 annually would only save $275, while a millionaire would get a $7,265.75 tax break and those earning $3 million would save $25,200 a year. The Sweeney plan would focus every dollar of tax relief on the 95 percent of New Jersey households that earn up to $250,000. The Christie proposal, by comparison, would give those families only an average of $218 in relief, while the top 5 percent would get an average of $4,632 and the top 0.6% would get an average of $22,577.

Jet owned by ex-airport developer Scot Spencer's company to be auctioned

In an effort to recoup $8.9 million in unpaid property taxes from a former San Bernardino International Airport developer now accused of defrauding taxpayers, the county Tax Collector's Office is auctioning off a Boeing 727 jet belonging to one of his companies. In an effort to recoup $8.9 million in unpaid property taxes from a former San Bernardino International Airport developer now accused of defrauding taxpayers, the county Tax Collector's Office is auctioning off a Boeing 727 jet belonging to one of his companies. Since 2009, Scot Spencer has racked up a total of $8.9 million in unpaid property taxes, penalties, collection fees and interest on four of his businesses, SBD Aircraft Services Inc., SBD Services LLC, SBD Properties Inc. and Norton Aircraft Maintenance Services, according to the Tax Collector's Office. The auctioning off of the Boeing 727 is one of the rare occasions in which an asset other than real estate is being auctioned off to pay unsecured property taxes, said County Tax Collector Larry Walker. "I can't tell you when the last time this was done in the county," Walker said, adding that the auction could pave the way for similar auctions in the future. "We're going to continue to examine all the unsecured property taxes in the county and we're going to try and decide if there are other taxpayers who have assets that we can seize and sell to collect those unsecured property taxes. " The appraised value of the unpainted jet that formerly belonged to American Airlines Advertisement is $598,125. While the opening bid amount has not yet been set, it is estimated to be around $54,382.92, Assistant Tax Collector Matt Brown said. Spencer's SBD Aircraft Services is listed as the owner of the jet. The unpaid property tax bill the company owes the county is $51,105.80. Proceeds from the sale of the jet can only be used to pay off the tax debt for SBD Aircraft Services, Walker said. "So far this is the only asset that we found that merits sale due to its value in relationship to the tax obligation, so we're starting here," Walker said. "And we're going to go through all the legal procedures to sell this property. " A firm date has yet to be set for the auction, but Walker said it will likely be in late May. In 2006, the San Bernardino International Airport Authority hired Spencer, a convicted felon who served more than four years in federal prison for bankruptcy fraud and who was subsequently banned from the aviation industry by the Federal Aviation Administration, to redevelop the airport. Two of Spencer's companies, Norton Development Co. LLC and SBD Properties LLC., were awarded contracts worth $43 million to renovate the airport's terminal and build a fixed-base operator hangar and office building, The project cost soared to roughly $125 million, receiving criticism from the county Grand Jury in 2011. Spencer, 48, and his business associate, Felice Luciano, 69, of Tempe, Ariz., now stand accused of conspiring to defraud airport officials and taxpayers out of $1.2 million in what prosecutors say was a fraudulent claim Spencer filed against the Airport Authority in 2008. Spencer and Luciano face felony charges of criminal conspiracy. Spencer faces additional charges of perjury and preparing false documentary evidence. The pair next appear in San Bernardino Superior Court on May 29 for a pretrial hearing. Read more: http://findapropertytaxlawyer.com/

Many Worcester, Mass. businesses appealing assessed values

After a city wide revaluation of its 48,000 commercial and residential properties, Marchand is now facing a 291-percent increase. He says the new assessed property value will cost him an extra 11,000 dollars in taxes a year. “You can swallow a little bit of a property value increase but to have it go up 291-percnet, that's a tough one to swallow.” More than three quarters of the city's commercial properties have gone up and Monday marked the last day to appeal the assessed values. Worcester's assessor, William Ford, says the city expects a large number of abatement applications this year. “As of Thursday the 21, approximately 1,217 applications were turned in, we have already inspected a number of properties, and we're in the process of reviewing more abatements at this time.” The city assessor must act on abatement applications within a 90-day period. City manager Michael O'Brien says there is money in an overlay account to pay back residents when necessary. “We do expect to grant abatements and when they are granted, we'll be here to issue checks and we have the appropriate money to do that.” Worcester’s Regional Chamber of Commerce's Stuart Loosemore says 30-percent f businesses saw a 40- to 50-pecent increase in their property values. He says residents and owners were overwhelmed with the news. “There was a lot of sticker shock, a lot of anger, a lot of frustration and then came confusion.” Loosemore says the Chamber has encouraged all businesses to file an abatement. Marchand filed his abatement with the assessor's office Monday morning. He says he's looking for some relief. “Trying to cut costs. There's really no other options,” he says. “Hopefully the abatement process goes through and we come back down to something the funeral home can take care of.”