Print

Email story

Comment

Email editor

City considers property tax cut

The council okays expanding Tampa's affordable housing program, with down payment assistance being the main change.

By JANET ZINK
Published June 2, 2006

TAMPA - In a nod to higher expenses and tighter budgets of Tampa residents, the City Council on Thursday voted to expand the city's affordable housing program and consider lowering property tax rates.

Council member Shawn Harrison proposed the property tax cut.

"Everything in life has gone up," he said. "This would be our opportunity to say, "We know what you're going through.' "

The city millage rate has remained at 6.539 for the past 17 years. Due to rising property values, the city projected collecting $139-million in property taxes in fiscal year 2006, an increase of $17.5-million over the previous year. Figures are not yet available for the next fiscal year. A mill is $1 in tax for every $1,000 in taxable property value.

Hillsborough County has rolled back its property tax rate every year for more than a decade.

Council member Rose Ferlita supported Harrison's proposal, citing increases in fees for such city services as water, sewer and trash collection and a stormwater fee created two years ago.

"It's a fine time to look at rolling back the ad valorem taxes," she said.

The city should look for ways to trim expenses to make it happen, she said.

With a 5-2 vote, the council scheduled a full discussion on the issue for June 15. Council members Linda Saul-Sena and Mary Alvarez cast the dissenting votes.

Residents are facing rising expenses, but so is the city, they said.

The city will pay $6.8-million for fuel this year, twice as much as it paid three years ago, and is also taking a hit on property insurance.

Cutting property taxes would be "irresponsible," Saul-Sena said.

But Harrison said he isn't proposing anything radical, maybe a 2 percent cut.

"It would not break the bank," he said.

A 2 percent reduction would result in about a $26 annual savings for a homeowner with a $225,000 home and a homestead exemption.

In a recent interview, Mayor Pam Iorio said cutting tax rates shouldn't be discussed until she has proposed a budget for the coming year.

"We have a lot of needs," she said.

In other action, the City Council unanimously approved changes to the city's affordable housing program.

Under the new rules, some first-time home buyers who earn less than 120 percent of the area median income can receive down payment assistance on homes priced up to $226,000. The previous maximum home price was $164,000.

"I would challenge most of us to find housing for $164,000," said city housing director Cynthia Miller.

The median income for a family of four is $54,000 a year.

The council also increased the down payment assistance ceiling for those earning 80 percent or less of the area median income to $60,000. The ceiling for those earning 80 to 120 percent of area median income remains $50,000.

"Down payment assistance is one of the best-kept secrets in our city," she said.

Other plans are in the works for increasing the affordable housing stock in Tampa, she said.

Some of those include:

n Offering developers incentives for building affordable homes.

n Issuing a request for proposals to build affordable homes on 55 vacant city lots.

n Awarding grant money to developers who build affordable multifamily properties for sale or rent.

Janet Zink can be reached at (813) 226-3401 or jzink@sptimes.com.

DOWN PAYMENT

The city's new down payment assistance rules mean some first-time home buyers could receive $60,000 for a down payment on a $226,000 home. For information, call 813 274-7954.

[Last modified June 2, 2006, 08:30:51]