Print

Email story

Comment

Email editor

metro

Council drops idea of property tax rate cut

A talked-about 2 percent decrease is "meaningless," the majority agrees. That's an "arrogant" view, says a loser in the debate.

By KEVIN GRAHAM
Published June 16, 2006

TAMPA - The City Council put an end Thursday to talk of lowering the property tax rate, calling homeowners' potential savings from a 2 percent decrease "meaningless."

"I think we're talking pennies here," said council member Mary Alvarez, who expressed the strongest views against a tax cut. "I would only save $18 a year. Big deal."

For a homeowner with a homestead exemption on a house valued at $200,000, the yearly savings from rolling back the millage rate 2 percent would be $22.89, said city finance director Bonnie Wise.

"This isn't meaningless to someone on a fixed income," said council member Shawn Harrison, who proposed exploring the decrease this month. "We cannot sit here in judgment of everybody else's financial situation and propose to know what's meaningful or not for them."

Harrison asked council members to revisit the discussion at a July 20 meeting, after the Hillsborough County property appraiser releases the new tax roll. But the only council members to agree with him were John Dingfelder and Rose Ferlita.

"Four of the council said that this isn't worth their time to hear," Harrison said after the vote. "I don't think we'll hear any more about it."

The city millage rate hasn't changed in 17 years, remaining at 6.539. A mill is $1 in tax for every $1,000 in taxable property value.

Officials projected collecting nearly $139-million in property taxes for fiscal year 2006 because of rising property values. That is a $17.5-million increase over the previous year.

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

Wise said a 2 percent tax break for Tampa property owners would have put a nearly $2.8-million dent in the city's budget. That equaled the amount of the City Council and city clerk's combined budgets.

Council member Linda Saul-Sena said there are city departments that go without things each year because there isn't enough money.

Before voting against keeping the tax cut on the table, Saul-Sena said the city's utility pipes are old and need replacing, chemicals used to treat drinking water go up in price every year and fuel for garbage trucks has gotten more expensive.

"You can only do so much with limited dollars," she said. "I do believe doing something so small would be a disservice."

Ferlita told council members not to forget about people who aren't homeowners.

"Last year wasn't good. This year, things are strappier," she said. "Next year, it's going to be worse."

Property taxes go up every year, and without a break, Ferlita said, apartment complexes would pass increased fees on to their tenants. She wanted the city staff to look at other possible budget cuts that would make a property tax decrease possible.

"It's unconscionable that we won't discuss it," she said later.

Harrison said the council was being "arrogant."

It spends "hours on trees and code enforcement," Harrison said. "When is the last time the board ever talked about reducing taxes? It hasn't happened in my seven years."

"We've been working on the city, trying to make it better for a long time," said council Chairwoman Gwendolyn Miller. "And now, we're going to take money away from the city?"

Mayor Pam Iorio will send the city's proposed budget to the council Aug. 3.

Kevin Graham can be reached at 813 226-3433 or kgraham@sptimes.com.

[Last modified June 16, 2006, 06:20:04]