MSD Board approves county MoU regarding homestead exemption audit

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The Ponte Vedra Beach Municipal Service District (MSD) Board of Trustees recently signed off on a memorandum of understanding (MoU) regarding a homestead exemption audit that an outside firm will conduct on behalf of St. Johns County. 

St. Johns County Property Appraiser Eddie Creamer attended the MSD Board’s meeting May 13 at the Ponte Vedra Beach Branch Library to discuss the audit and seek the MSD’s approval. The county property appraiser has met with each of the county’s taxing authorities to do so. 

Creamer said his office administers about 71,000 exemptions in the county. Of those exemptions, he said most are homestead exemptions, which not only provide homeowners a $50,000 deduction in their tax-assessed value, but also applies a 3% cap on the amount that a homeowner’s tax-assessed value can increase each year. Creamer said his office receives about 9,000 homestead exemption applications each year. 

The problem his office consistently faces, Creamer said, is when an exemption is granted, it becomes out of date, because “things can change in ownership,” he said. This causes that exemption to be noncompliant. When that happens in Florida, Creamer said they have a good system of catching it. But when it happens outside of Florida, with a death, divorce, remarriage, etc., Creamer said his office does not have a good system to address the situation. In addition, he said of the 71,000 exemptions that his office has, some are over 60 years old, and they have never undergone a comprehensive audit to determine their validity.

As a result, Creamer has been proposing to taxing authorities in the county a comprehensive audit that allows his office to identify improperly claimed exemptions and look outside of Florida to events that may have happened to jeopardize different exemptions. With the audit, Creamer said his office will also be able to determine which rentals and short-term rentals may be claiming homestead exemption. He noted that the audit will additionally help his office search for unclaimed exemptions, meaning homeowners who live in the county and are qualified for an exemption but have not applied. 

Creamer’s office, which doesn’t have enough manpower to tackle all exemptions, has selected a firm called The Exemption Project to complete the project. If any back taxes are recovered, they will be remitted back to the taxing authorities and the county, and 18% will be retained and paid to the auditing firm. Creamer said he expects the project to begin in July and finish in a 90-to-120-day period.

Other MSD news

According to an email from MSD Board Treasurer Gary Jurenovich, the MSD has been working with St. Johns County and Ponte Vedra Inn & Club to get a county easement granted so that a major storm water improvement project can begin on Ponte Vedra Boulevard.  

That project is moving forward, said Jurenovich, as the Ponte Vedra Inn & Club noted in a meeting that it would be willing to assist the community in making these improvements possible. Five new storm water drains are expected to be placed around the intersection of Ponte Vedra Boulevard and San Diego Road, with a new outfall line along San Diego. This project should begin in fall 2019.

In addition, Jurenovich said TECO Peoples Gas will be extending the gas line along Ponte Vedra Boulevard from south of the Sawgrass back gate, south on Ponte Vedra Boulevard to Mickler’s and then across A1A to the roundabout. Jurenovich said this project should begin shortly and not take long. Residents along this gas line, once installed, will be allowed to connect if desired.

Also according to Jurenovich, JEA will be replacing a water main on Ponte Vedra Boulevard between Miranda and Corona roads beginning in January 2020. In addition, he said Corona Road is schedule to be milled and repaved in fall 2019. 

Finally, the MSD treasurer said discussions were held at the meeting regarding the state of the roadway along Ponte Vedra Boulevard. This topic will again be up for discussion at the MSD Board’s next meeting on Monday, June 10, at 6 p.m. at the Ponte Vedra Beach Branch Library. Preliminary budget discussion is also planned to take place.