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Property values zoom to record

By WILL VAN SANT
Published July 1, 2006

Over the past year, the value of taxable property in Pinellas County rose 20.3 percent, a record increase, said property appraiser Jim Smith.

"Man, I tell you, buddy, this is the deal: Buy low, sell high," he said. "It's crazy. It is just crazy."

The total value of taxable property this year is $75.7-billion. The figure, based on 2005 home sales, will be used to calculate tax bills to be sent this fall.

As in 2005 and 2004, when property values rose 14.6 and 10.7 percent, respectively, booming home sales in beach towns helped feed this year's jump.

Tiny Belleair Shore was champ, with an increase of 39.6 percent. Safety Harbor showed the least gain among the county's 24 municipalities, at 13.4 percent.

Hillsborough County taxable property values climbed 22 percent last year, the greatest increase in at least a decade.

After years of vigorous real estate sales, Smith said supply was severely constrained in 2005, and speculators bidding on what was available contributed to the sharp rise in values.

Property owners may be left shaking their heads, but for Pinellas budget officials, these are happy times.

Jerry Herron, the county's budget chief, said the property value surge will translate into about $45-million in new revenue, a sizable amount given that his proposed general fund spending plan for next year is $630-million.

Hillsborough County expects an extra $145-million in property tax revenue compared with last year, even after a proposed one-tenth mill decrease.

Tampa, which saw property values rise 21 percent last year, expects an additional $28-million.

The Pinellas County Commission plans to return about $11-million of the new revenue to residents in the form of a modest tax cut.

If the cut is made official after budget workshops in September, it would be the first time the county lowered its property tax rate since 1996.

The cut would amount to a 20-cent savings on every $1,000 of taxable property value.

So for those who enjoy the Save Our Homes cap, the cut would offset the amount of increase and keep their county tax bill about the same.

About two-thirds of Pinellas homeowners have the cap. Others can expect hefty increases.

That bothers County Commissioner Susan Latvala, but she argues a more dramatic reduction in the tax rate would be irresponsible.

"That bubble is going to burst, and it's going to be nearly impossible to go back and raise taxes," Latvala said. "We have to be prudent."

So when will the rate of property value growth slow?

Smith points out that there are more properties on the market in Pinellas this year than last.

And as prospective buyers face rising interest rates and ballooning insurance costs, they're likely to become more reluctant to get into bidding wars, he said.

Despite those factors, Smith said values are continuing to climb.

"There are just so many variables," he said.

"Look at all the people still coming to Florida."

Will Van Sant can be reached at 445-4166 or vansant@sptimes.com.

Pinellas County property values have increased 20.3 percent over last year, a record, reports county Property Appraiser Jim Smith. As in years past, home sales in beach towns helped fuel the increase. Here?s a town-by-town breakdown.

Municipality	Percent increase
Belleair	16.4
Belleair Beach	24.9
Belleair Bluffs	20.7
Belleair Shore	39.6
Clearwater	23.2
Dunedin	17.7
Gulfport	21.1
Indian Rocks Beach	30.8
Indian Shores	36.2
Kenneth City	17
Largo	21.6
Madeira Beach	30.9
North Redington Beach	22.4
Oldsmar	21.9
Pinellas Park	19.7
Redington Beach	29.3
Redington Shores	28.5
Safety Harbor	13.4
Seminole	19.9
South Pasadena	27.7
St. Pete Beach	22.8
St. Petersburg	19.2
Tarpon Springs	21.6
Treasure Island	25.5

Source: Pinellas County Property Appraiser's Office

[Last modified July 2, 2006, 08:19:34]