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Tampa votes to trim tax rate

To homeowners, the proposed reduction won't amount to much, but it would be the first time in decades that the rate has dropped.

By JANET ZINK
Published September 15, 2006

TAMPA - Bowing to public pressure, the Tampa City Council voted Thursday to cut the property tax rate for the first time in 20 years.

The preliminary decision will become final in two weeks, when it comes up for final approval.

While the proposed reduction is modest - from 6.539 to 6.408 mills, for many city residents the equivalent of a couple of movie tickets - council member John Dingfelder said it is a "symbolic gesture" that proves the council can tighten its belt a little.

The vote came after more than a dozen people made emotional appeals about the hardship of making ends meet at a time when rising property values are driving up tax bills.

"Government is choking the life out of us," said Trish Moore, warning that if their representatives didn't help them, they would find candidates who would.

Tampa Mayor Pam Iorio said she wasn't surprised by the turn of events.

"It's not unexpected given what's occurred throughout this state," she said.

Across Florida, angry crowds have confronted city and county officials, demanding cuts to their property taxes.

In St. Petersburg, the City Council heard from many angry residents on Thursday night, but refused to lower the millage rate.

The council voted 5-3 to approve the previously agreed upon millage rate of 6.60, the city's lowest in 20 years.

And hundreds of Hernando and Citrus county residents crowded into meeting rooms Thursday to plead for property tax relief.

In response, the Hernando County Commission voted 3-2 to give preliminary approval to a one-half-mill cut, and the Citrus commission voted 4-0 for a 1 mill reduction.

This follows a similar move by the Hillsborough County Commission, which agreed Tuesday to consider cutting its property tax rate by 1 mill, after 14 years straight of incremental trims.

Commissioner Ronda Storms urged audience members to take their frustration out on Tampa, where the property tax rate went up in the 1980s and then remained steady for the past 17 years.

Several people took that suggestion to heart.

Sherry Parsons accused the City Council of greedily approving condominium projects to boost property tax rolls, while ignoring the tax implications of the real estate boom.

"I don't care about the Riverwalk. I don't care about the art museum," she said, adding she only cares about lower taxes.

The council responded, voting 4-2 in favor of the reduction, with Mary Alvarez and Linda Saul-Sena voting no and Gwen Miller absent.

After the vote, people in the council chambers burst into cheers.

"We'll see how happy they are when they can't get city services," muttered Alvarez as she walked out of the room.

Council member Rose Ferlita made the motion to reduce the city's millage rate from 6.539 to 6.408. One mill equals $1 of tax for every $1,000 of assessed, taxable property value.

The change means a person with a $400,000 house and homestead exemption would see a savings of about $49 a year.

"It's a symbolic gesture," said Dingfelder. The savings for property owners won't make a real difference in anyone's personal budget, he said, but the city should show that it is capable of a little belt-tightening.

Iorio said in two weeks she will send a budget back to the council for approval that is trimmed by $3.3-million to reflect the property rate difference.

Iorio's initial budget of $728-million reflected a $54-million increase over last year's budget. Property tax revenue projections were up $28.7-million over last year due to increased valuations. The city will have to make do now with a $25.4-million increase.

Iorio said she still plans to set aside $5-million for an emergency reserve fund. She also will avoid trimming the police and fire rescue departments and try to spread the cuts across all other city departments.

Council member Kevin White said Tampa residents will need to be prepared for pot holes to go unfilled and drainage problems to linger with $3.3-million less to pay for improvements.

But he heard the voters "loud and clear," he said.

"One of the main things we must do as legislators is pay attention to the people who put us in office," he said.

Thursday's vote marked a major shift in the council's position on the property tax rate.

In June, council member Shawn Harrison suggested a cut, but a majority of the council shot the idea down.

Saul-Sena and Alvarez stuck to their earlier stances.

"Sitting up here is painful," Saul-Sena told the crowd Thursday. "We feel your frustration."

But the budget presented by Iorio is a bare-bones, neighborhood-focused budget and the city has many needs, Saul-Sena said. "This administration is not frivolous," she said.

Alvarez scolded the audience.

"We're being taxed to death, too," she said. "Give us a break."

Harrison said he was pleased by the vote and that residents showed up to voice their concerns.

"There was such passion in the room tonight," he said. "That is democracy at its best."

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

[Last modified September 17, 2006, 13:27:42]