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Better heed the notice from the property appraiser

Property tax rates aren't final, but that piece of paper will give you a good idea of what you'll probably pay.

It's that time of year again when Hillsborough County property tax men come calling.

The property appraiser's office on Wednesday began sending Truth in Millage, or TRIM, notices to homeowners. The notice, required by Florida law, gives people an idea of what their bill from the county tax collector will be.

But it's not definitive.

Tax rates will be finalized in the coming months. And the TRIM notice doesn't include non ad valorem taxes - fees charged to some homeowners that generally are not based on property value. They can amount to more than $1,500 a year.

The TRIM notice is not a bill, as stated in a box at the top. That prompts many people to pitch it into the trash, said Warren Weathers, a chief deputy property appraiser.

That's a mistake, he said. Look it over. The document contains important information about the taxable value of your home, which is based on sales trends.

"It gives the average property owner a chance to look at his or her value and dispute or appeal it if they feel it's wrong," Weathers said.

Tax rates, or millages, are set by various agencies, such as the School Board, Board of County Commissioners and city councils, which use property taxes to supplement their budgets. A millage represents a dollar amount charged for every $1,000 of a property's value.

The rates are adjusted each year as the governmental organizations determine how much money they need from property owners to provide services.

The TRIM notice gives details on public hearings to discuss new tax rates.

"These hearings are where you can go and tell your government officials what you do and don't want them to spend on," Weathers said. "Not too many people go to those and that's ... where people can stand up and be heard."

One misconception is that tax rates in one neighborhood are substantially higher than they are in another.

In reality, basic property tax rates hover around $24 for each $1,000 of a property's value throughout the county. So someone who owns a house with a taxable value of $200,000 would pay about $4,990 annually in South Tampa and $4,704 in Brandon.

The two exceptions are Tampa Palms, where the owner of the same house would pay $5,510 a year, and Plant City, where the taxes would be $4,385.

Differences are based on the services needed in a particular area. For example, people who live around the Hillsborough River pay a little extra to the Southwest Florida Water Management District. People who live in Tampa Palms pay a Community Development District fee based on property value, unlike most CDDs, which charge a flat amount. Plant City and Temple Terrace don't pay a library tax.

Still, next-door neighbors on a street where market forces are driving up the price of homes can live in the exact same house - same square footage, same swimming pool, same taxable value - and end up paying substantially different property taxes.

That's because a 9-year-old state law allows homeowners' property taxes to increase no more than 3-percent a year as long as they remain in a house, Weathers said. The person who's lived on that street seven years will pay much less than the person who just moved in.

That can cause sticker shock for a new homeowner who asked the sellers how much they were paying in property taxes. That rate sticks for a year, but the next year, the new homeowner gets slammed with a tax bill based on the home's current value.

Every year, Weathers said, the county property appraiser's office fields hundreds of calls from people wanting to know why their TRIM notice estimates they will owe more in taxes than the person who just sold them their house.

During the last legislative session, Florida lawmakers passed a law requiring home sellers or their representatives to disclose exactly what the new owner's property taxes will be. The law goes into effect in January.

The TRIM notices reflect a large chunk, but not all, of the taxes owed.

They don't show non ad valorem taxes, the fees charged to some owners for services such as reclaimed water, lighting and the maintenance of public areas in subdivisions. Hillsborough County has more than 70 special districts that collect non ad valorem taxes, up from 32 in 1990.

"These non ad valorems can jack your tax bill up considerably," said Dana Dove, a spokeswoman for the county tax collector's office. Someone who lives in a subdivision that has a CDD fee, plus water and wastewater, lighting, solid waste and stormwater fees, might end up paying more than $1,500 on top of their property taxes.

"When you add that to (property taxes) you have people who are blindsided," Dove said. "There are some people who have to move because they can't afford these fees."

Before buying a house, Dove advises asking the real estate agent or builder what assessments apply to the neighborhood.

"When you go in and buy a new home, yeah, the interest rates are great and the price is great. But you need to take all these non ad valorems into consideration," she said. "People go to the quick when they're buying a house. You've got to be educated."

To determine the non ad valorem taxes on an existing house, call the tax collector's office or visit its Web site. Add that figure to the tax estimates on your TRIM notice to find out exactly how much you'll need to pay the Hillsborough County tax collector. Expect the bill at the end of October.

- Janet Zink can be reached at 226-3401 or jzink@sptimes.com

This week: Homeowners should receive TRIM notices in the mail from the Hillsborough County Property Appraiser. The notices give you an idea of what your taxes will be based on the value of your property. Property owners have 25 days to call the appraiser's office for an administrative review or file a formal appeal with the Clerk of the Circuit Court. The TRIM notice also lists any exemptions homeowners might have applied for and received. The most significant is the homestead exemption, which deducts $25,000 from the appraised value of the home if it's the owner's primary residence. The deadline for applying for a homestead exemption is March, but homeowners have 25 days after receiving the TRIM notice to make a late application. For information, call the property appraiser's office at 813 272-6100 or go to www.hcpafl.org

August and September: The various taxing agencies have public hearings to discuss proposed changes in tax rates and the budgets of the agencies. Check your TRIM notice for meeting times, dates and locations.

Oct. 29: The Tax Collector mails out property tax bills. These reflect the amount you owe based on the value of your property, as well as non ad valorem taxes, which are fees for garbage collection, streetlights and other services generally not based on property values. If you have questions about your property tax bill, call 813 635-5200 or go to www.hillstax.org for information.

March 2005: Property taxes are considered late after April 1. Payments can be made any time before that date with discounts given for early payment. Thirty to 40 percent of property owners pay their taxes by making monthly contributions to an escrow account held by their mortgage companies, the mortgage company makes the payment in November.