Print

Email story

Comment

Email editor

County gets a windfall, but shouldn't keep it all

The unbelievable price fetched by the former owners of the house down the block and the escalating value of vacant lots around Pasco County helped push property tax rolls to yet another record in 2006.

Property Appraiser Mike Wells announced last week the tax base increased an estimated 27 percent to $25.3-billion, meaning local government coffers will be flushed with cash for at least another 12 months.

But unlike previous years when construction contributed the lion's share of the growing tax base, rising values for existing homes and empty parcels spurred much of the increase.

Of the $5.4-billion in property value growth, construction contributed just less than $1.6-billion and rising prices paid for existing property accounted for $4-billion worth of higher assessments. The value of vacant property jumped 43 percent for commercial lots and 28 percent for residential. The value of condominiums went up 35 percent and single-family homes increased 32 percent.

But the increased tax pinch will be felt by commercial property owners, residents with more than one house and those who closed on their homes in 2005. People who remained in their existing homes are immune from a sizable property tax increase (presuming a constant tax rate) because of the Save Our Homes amendment limiting increased assessments of homesteaded property to 3 percent annually.

Still, the growth brings a tax windfall for government and reinforced the realization that affordable housing opportunities are diminishing.

Wells' announcement brought an immediate call for property tax relief from County Commissioner Steve Simon. Simon's election-year politicking aside, we expect county administrators and commissioners to share a similar sentiment as they did a year ago.

The current property tax rate approved by commissioners in the fall is 6.681 mills, a 10 percent cut from the previous year, and the county's lowest tax rate in nearly two decades. Commissioners also sliced their fire tax 28 percent to 1.157 mills. At the same time, the county had plenty of cash to spend on: public safety including substantially higher salaries for deputies, 23 new officers at the Sheriff's Office and 28 fire/rescue workers; a Public Defender's Office jail diversion program; and still-to-be-completed library renovations and park expansions.

As Simon suggested, commissioners are correct to consider setting a property tax rate that takes into account their constituents' skyrocketing homeowners insurance premiums and the nearly $3-a-gallon price for gasoline. But, they can't short-shrift the county's needs, and they must work to adopt a budget that balances all concerns. Consider:

Twice, the county unsuccessfully sought state money for a library to serve Trinity; the county's Economic Development Council budget is lower than similarly sized counties in Florida; the price of capital improvements and buying rights of way continues to increase; there are waiting lists for affordable housing programs and just five months ago health care advocates said they needed an infusion of money to help treat the medically needy.

The cooling real estate market also shouldn't be dismissed. Wells predicted double-digit growth in the tax rolls next year, but said this year's boom isn't likely to be repeated.

Commissioners should weigh the competing wants thoughtfully. They might not get a chance to grant as many wishes in future years as they do in 2006.

[Last modified May 23, 2006, 01:29:11]