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Deployed Service Members Exemptions Bill Number(S): Proposed Language

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Deployed Service Members Exemptions Bill Number(S): Proposed Language REVENUE ESTIMATING CONFERENCE Tax: Ad Valorem Issue: Deployed Service Members Exemptions Bill Number(s): Proposed Language Entire Bill Partial Bill: Sponsor(s): Month/Year Impact Begins: Upon becoming law Date of Analysis: 3/3/15 Section 1: Narrative a. Current Law: A service member who receives a homestead exemption may receive an additional ad valorem tax exemption on that homestead property if he or she was deployed during the preceding calendar year on active duty outside the continental United States, Alaska, or Hawaii in support of: Operation Noble Eagle, which began on September 15, 2001; Operation Enduring Freedom, which began on October 7, 2001; Operation Iraqi Freedom, which began on March 19, 2003, and ended on August 31, 2010; Operation New Dawn, which began on September 1, 2010, and ended on December 15, 2011; or Operation Odyssey Dawn, which began on March 19, 2011, and ended on October 31, 2011. b. Proposed Change: The language proposes that service members who were also in support of the following operations qualify for the exemption: Operation Joint Guardian, which began on June 12, 1999; ‐ A NATO contingency response aiming at ensuring full compliance with the Military Technical Agreement signed by NATO and FRY military authorities on 9 June 1999 and with UN Security Council Resolution 1244 Operation Octave Shield, which began in 2000; ‐ Operational activities in support of the campaign plan against the Al Qaeda network and other terrorist organizations in East Africa Operation Trans‐Sahara Counterterrorism Partnership, which began in June 2005; ‐ The U.S. government’s multi‐year, interagency program to counter violent extremism and terrorism across ten countries in the Sahel and Maghreb: Algeria, Burkina Faso, Chad, Mauritania, Mali, Morocco, Niger, Nigeria, Senegal, and Tunisia. Operation Nomad Shadow, which began in 2007; ‐ A classified United States military operation that may have begun in November 2007 to share intelligence information between the U.S. and the Republic of Turkey. Operation US Airstrikes Al Qaeda in Somalia, which began in January 2007; Operation Objective Voice, which began in 2009; ‐ The objective of the operation is to harness and orient all information operations and influence related activities in theatre to counter violent extremist organization ideology. Operation Georgia Deployment Program, which began in August 2009; ‐ Help Georgia’s military train, deploy and support the NATO mission in Afghanistan Operation Copper Dune, which began in 2010; ‐ The codename for US military operations directly and in support of the Government of Yemen against Al Qaeda in the Arabian Peninsula (AQAP) and other terrorist elements in Yemen. Operation Observant Compass, which began in October 2011; ‐ the name of the deployment of US forces to Uganda and other countries in central Africa to counter the Lord's Resistance Army (C‐LRA). Operation Juniper Shield, which began in 2013; or ‐ the Department of Defense’s contribution to the inter‐agency Trans Sahara Counter‐Terrorism Partnership (TSCTP) mission, which focuses on North and West Africa. Operation Inherent Resolve, which began on August 8, 2014. ‐ the U.S. military operation name for the military intervention against ISIL, including both the campaign in Iraq and the campaign in Syria. This language also provides new rules for applying before the deadline and how to appeal an exemption. The act will take effect upon becoming law and first applies to ad valorem tax rolls for 2015. 230 REVENUE ESTIMATING CONFERENCE Tax: Ad Valorem Issue: Deployed Service Members Exemptions Bill Number(s): Proposed Language Section 2: Description of Data and Sources Data from U.S. Department of Defense provided by the Florida Department of Military Affairs Florida Department of Revenue, Florida Final 2014 Tax Rolls March 4, 2015 Ad Valorem Conference Section 3: Methodology (Include Assumptions and Attach Details) There are currently 1,410 service members claiming the exemption. The school and non‐school millage rates were used to calculate the average value of exemption claimed. Looking at the 2014 nation‐wide data for monthly number of deployed service members we took the average of all the months as the total number of deployed soldiers in a year, assuming the average length of deployment is one year. We then looked at the deployment data classified by family status and found that 61% of deployed service members are either married, have children, or both. When we looked at the deployment data classified by state of legal residence, we found that 10.46% of deployed members had a legal residence in Florida. To get the total number of Florida deployments, we took 10.46% of the average of the total number of deployed soldiers in 2014. We got our estimates by multiplying the total number of Florida deployments by the average tax break (school and non‐ school), the % of deployed soldiers that own homes in Florida, and the % of deployed soldiers that are involved in the above defined operations. For the high we assumed that 61% of deployed soldiers own homes and 50% of deployed soldiers were involved in these operations, for the middle it was assumed that 30% own homes and 30% were involved in the operations, and for the low we assumed that 10% of deployed soldiers own their own homes and 10% were involved with the operations in 2014. We then grew these numbers by the predicted homestead growth rates. Section 4: Proposed Fiscal Impact School High Middle Low Cash Recurring Cash Recurring Cash Recurring 2015‐16 $(1.1 M) $(1.1 M) $(0.32 M) $(0.32 M) $(.036) $(.036) 2016‐17 $(1.16 M) $(1.16 M) $(0.34 M) $(0.34 M) $(.038) $(.038) 2017‐18 $(1.22 M) $(1.22 M) $(0.36 M) $(0.36 M) $(.040) $(.040) 2018‐19 $(1.25 M) $(1.25 M) $(0.37 M) $(0.37 M) $(.041) $(.041) 2019‐20 $(1.29 M) $(1.29 M) $(0.38 M) $(0.38 M) $(.042) $(.042) Non‐ High Middle Low School Cash Recurring Cash Recurring Cash Recurring 2015‐16 $(1.64 M) $(1.64 M) $(.48 M) $(.48 M) $(.053 M) $(.053 M) 2016‐17 $(1.74 M) $(1.74 M) $(.51 M) $(.51 M) $(.056 M) $(.056 M) 2017‐18 $(1.81 M) $(1.81 M) $(.53 M) $(.53 M) $(.059 M) $(.059 M) 2018‐19 $(1.87 M) $(1.87 M) $(.55 M) $(.55 M) $(.061 M) $(.061 M) 2019‐20 $(1.93 M) $(1.93 M) $(.57 M) $(.57 M) $(.063 M) $(.063 M) List of affected Trust Funds: Section 5: Consensus Estimate (Adopted: 03/06/2015): The Conference adopted an impact that was twice the low impact. School Non‐School Total Local/Other Cash Recurring Cash Recurring Cash Recurring 2015‐16 (0.1) (0.1) (0.1) (0.1) (0.2) (0.2) 2016‐17 (0.1) (0.1) (0.1) (0.1) (0.2) (0.2) 2017‐18 (0.1) (0.1) (0.1) (0.1) (0.2) (0.2) 2018‐19 (0.1) (0.1) (0.1) (0.1) (0.2) (0.2) 2019‐20 (0.1) (0.1) (0.1) (0.1) (0.2) (0.2) 231 Deployed Service Members Exemptions-Impact Summary Current Law Exemption Data 2014 (Florida) Number of Exemptions 1410 Number of Active Operations 2 Florida Information High Estimate Middle Estimate Low Estimate Total # of Deployments Average number of exemptions per operation 705 School $ 10,605 $ 10,605 $ 10,605 Value of exempt homestead $ 67,207,238 % that own homes 61% 30% 10% % that are involved with specified Average Florida Millage Rate (School) $ 7.1334 operations 50% 30% 10% Average Tax Break Total Tax Value of Exemptions (School Rate) $ 479,416 $ 340 $ 340 $ 340 Average Tax Break (School Rate) $ 340 Fiscal Impact $ 1,099,825 $ 324,539 $ 36,060 Total # of Deployments Average Florida Millage Rate (Non-School) $ 10.639 Non-School $ 10,605 $ 10,605 $ 10,605 Total Tax Value of Exemptions (Non-School % that own homes Rate) $ 715,018 61% 30% 10% % that are involved with specified Average Tax Break (Non-School Rate) $ 507 operations 50% 30% 10% Average Tax Break $ 507 $ 507 $ 507 Nation-wide Data: Total Number of Deployed Service Members Fiscal Impact $ 1,640,318 $ 484,028 $ 53,781 2014 Month Total # Deployed Homestead Growth Numbers Jan 111,543 2015 8.20% Feb 109,328 2016 5.89% March 118,874 2017 4.33% April 109,169 School 2018 3.16% May 103,409 High Estimate Middle Estimate Low Estimate 2019 3.04% June 99,407 % involved with operations 50% 30% 10% July 103,639 % that own home 61% 30% 10% Aug 98,289 2015-2016 $ (1,099,825) $ (324,539) $ (36,060) Sept 97,192 2016-2017 $ (1,164,605) $ (343,654) $ (38,184) Oct 99,762 2017-2018 $ (1,215,032) $ (358,534) $ (39,837) Nov 87,415 2018-2019 $ (1,253,427) $ (369,864) $ (41,096) Dec 78,663 2019-2020 $ (1,291,532) $ (381,108) $ (42,345) Average 101,391 As of 12/31/14 Country-Wide Currently Deployed Personnel Total Non-School Married With Children 26,235 High Estimate Middle Estimate Low Estimate Married Without Children 12,972 % involved with operations 50% 30% 10% Single with Children 3,843 % that own home 61% 30% 10% Total Deployed 70,461 2015-2016 $ (1,640,318) $ (484,028) $ (53,781) % Deployed married, have children, or both 61% 2016-2017 $ (1,736,932) $ (512,537) $ (56,949) 2017-2018 $ (1,812,142) $ (534,730) $ (59,414) As of 12/31/14, there were 7,372 (10.46%) deployed service members with Legal Residence in Florida 2018-2019 $ (1,869,405) $ (551,628) $ (61,292) 10.46% 2019-2020 $ (1,926,235) $ (568,397) $ (63,155) 232 Impact Conference March 6, 2015.
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