REVENUE ESTIMATING CONFERENCE Tax: Ad Valorem Issue: Downtown Development Authorities Bill Number(s): CS/HB 833 Entire Bill X
Partial Bill: Sponsor(s): Rep. M. Diaz Month/Year Impact Begins: 7/1/2015 Date of Analysis: 4/8/2015 Section 1: Narrative Current Law: Downtown Development Authorities (DDAs) are special districts whose function is planning, coordinating, and assisting in the implementation, revitalization, and redevelopment of a specific downtown area of a city. Florida currently has 14 DDAs. These districts have been created primarily through special act. All districts are allowed to levy 0.5 mill against the property located within the boundaries of the district. One DDA, the City of Miami’s DDA, created its DDA pursuant to chapter 65‐1090, L.O.F., which authorized municipalities with a population in excess of 250,000 to establish a DDA with certain enumerated powers. The law provided that DDAs be governed by a five‐member board appointed by the governing body of the municipality and chaired by the mayor of the municipality. The law authorized the governing body of the DDA to levy up to a 0.5 mill ad valorem tax on all real and personal property in the downtown district. The City’s DDA has been subject to litigation, but the City has been successful in this litigation, thus far. Millage levied by a downtown development authority is a part of that municipalities ten mill cap and the authorization to levy up to 0.5 mill of ad valorem taxation is a further limitation within the ten mill levy of the municipality. Proposed Change: The proposed amendment provides (in part): The governing body of a municipality with a population of more than 400,000, as determined by the Office of Economic and Demographic Research, and located within a county as defined in s. 125.011(1), may, by ordinance, levy an ad valorem tax on all real and personal property in a downtown development district of up to 0.475 mill on the taxable value of the property located therein for the purpose of financing the operation of the district. In no event may the district’s millage exceed 0.5 mill. The district’s millage is limited as provided in s. 200.001(8)(d) for dependent special districts. Section 2: Description of Data and Sources 2014 Certified Preliminary Taxable Value – Miami Downtown Development District Miami‐Dade Non‐Residential Real Property Growth Rates from the March 4, 2015 Ad Valorem Assessments Estimating Conference Section 3: Methodology (Include Assumptions and Attach Details) High ‐ Measures the impact of the lost capacity due to the reduction of the authorized maximum millage from .5 mills to .475 mills Middle – Measures the fiscal impact against the 0.478 mills levied in 2014. Section 4: Proposed Fiscal Impact High Middle
Low
Cash Recurring Cash
Recurring
Cash
Recurring 2015‐16 (0.4 M) (0.4 M) (0.04 M)
(0.04 M)
2016‐17 (0.4 M) (0.4 M) (0.05 M)
(0.05 M)
2017‐18 (0.4 M) (0.4 M) (0.05 M)
(0.05 M)
2018‐19 (0.4 M) (0.4 M) (0.05 M)
(0.05 M)
2019‐20 (0.4 M) (0.4 M) (0.05 M)
(0.05 M)
List of affected Trust Funds: Ad Valorem 436
REVENUE ESTIMATING CONFERENCE Tax: Ad Valorem Issue: Downtown Development Authorities Bill Number(s): CS/HB 833 Section 5: Consensus Estimate (Adopted: 04/10/2015): The Conference adopted a negative insignificant impact. GR Trust
Local/Other
Total
Cash Recurring Cash Recurring
Cash
Recurring Cash
Recurring
2015‐16 0.0 0.0 0.0 0.0 (Insignificant) (Insignificant) (Insignificant) (Insignificant)
2016‐17 0.0 0.0 0.0 0.0 (Insignificant) (Insignificant) (Insignificant) (Insignificant)
2017‐18 0.0 0.0 0.0 0.0 (Insignificant) (Insignificant) (Insignificant) (Insignificant)
2018‐19 0.0 0.0 0.0 0.0 (Insignificant) (Insignificant) (Insignificant) (Insignificant)
2019‐20 0.0 0.0 0.0 0.0 (Insignificant) (Insignificant) (Insignificant) (Insignificant)
437
CS/HB 833 Downtown Development Districts
Downtown Development Authority
FT. Lauderdale Downtown Development District
Dade County Downtown Development Authority
City of Ocala Downtown Development "A"
City of Ocala Downtown Development "B"
City of Ocala Downtown Development "C"
Clearwater Downtown Development Board
Lakeland Downtown Development
Orlando - Downtown Development Board
City of Sarasota - Downtown Improvement District
Daytona Beach Downtown Development
Panama City Downtown Improvement
Pensacola Downtown Improvement
Tallahassee Downtown Improvement Authority
Delray Beach DDA
West Palm Beach Downtown Development
Bradenton Downtown Development
Millage
0.5882
0.4780
1.4966
1.6332
1.2825
0.9651
2.0000
1.0000
2.0000
1.0000
2.8918
2.0000
1.0000
1.0000
1.0000
0.0000
2014 Preliminary Taxable Value - Miami DDA
Levy at 0.5000 mills
Levy at 0.478 mills
Levy at 0.475 mills
Impact - High
Impact middle
$13,526,814,996
$6,763,407
$6,465,818
$6,425,237
$338,170
$40,580
Miami-Dade Non-Residential Growth rate-
Rate
2015
2016
2017
2018
2019
Miami-Dade Non-Residential Growth rate-
Impact - High
5.30%
4.30%
3.30%
2.90%
2.50%
Rate
2015
2016
2017
2018
2019
April 10, 2015 Impact Conference
For millage purposes:
Dependent or Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Dependent
Dependent
Dependent
Dependent
Dependent
Dependent
Dependent
Independent
No millage
438
$356,093
$371,405
$383,662
$394,788
$404,658
Impact - Middle
5.30%
4.30%
3.30%
2.90%
2.50%
$42,731
$44,569
$46,039
$47,375
$48,559
439