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Property tax savings don't match the hype
Legislators predicted typical property tax cuts of $174. Appraisers find it's even less.
By DAVID DECAMP and BILL VARIAN, Times Staff Writers
Published August 18, 2007
Hillsborough County Administrator Pat Bean stood before the Tiger Bay Club of Tampa on Friday and asked the crowd for its reaction to property tax notices mailed this week.
"Did your taxes drop like a rock?"
The response: vigorous laughter.
Bean laughed, too. "I know mine didn't," she said.
In fact, figures from Tampa Bay area property appraisers show typical savings far below the $174 figure touted by legislators in June
Hillsborough homeowners with a homestead exemption will typically save $124. And they made out the best in Tampa Bay.
The typical savings for a Pinellas County homeowner with the homestead exemption is $81; in Pasco, it's just $34.
Hernando County Property Appraiser Alvin Mazourek could not provide similar information.
The Legislature also touted savings for nonhomestead property owners $199 on average and owners of commercial/industrial property ($941 on average).
Again, figures from around Tampa Bay did not match those estimates.
In Hillsborough, bills for the typical nonhomestead property owners will actually increase, by $44. The news is just as bad for Hillsborough owners of commercial and industrial property, who face a typical increase of $385, according to property appraiser's data.
The tax rate notices (officially called truth in millage or Trim notices) going out around the Tampa Bay region give people their first glimpse at whether their monthly mortgage payment will go up or down next year. The quick answer: modestly down, at best.
But another part of the equation is property insurance, which many people pay as part of their mortgage payment. And despite steps by the Legislature aimed at lowering insurance rates, many of the state's property insurers are seeking permission for double-digit rate hikes.
Hillsborough County Property Appraiser Rob Turner said he believes the failure to rein in insurance costs is tempering the public's reaction to their tax notifications in an unexpected way.
"Quite honestly, I'm sensing that they're thrilled by a reduction," Turner said. "That they're not trying to gauge that against their expectations. I think they expected more of a reduction on property insurance. When that didn't happen, I think they had a very guarded expectation on property taxes."
House Speaker Marco Rubio, R-Coral Gables, was unavailable Friday, but a spokeswoman and state officials say the differences between what Legislators promised and the figures released this week can be explained.
First, tax rates in Tampa Bay may not match state averages. Second, the state figure was created before local and county governments set their actual tax rates.
The appraisers also calculated a "median" value for tax cuts, which is not the same as an "average" tax cut the Legislature used. A median focuses on the exact middle of the tax base, reducing the distorting effect, for instance, that extremely expensive properties have on an overall average.
"When we're trying to find what's more typical, what most people are seeing, the median is the typical number to use," said Pam Dubov, chief deputy appraiser in Pinellas.
Faced with the Legislature's demand to lower taxes, local government officials have been preparing budgets that cut jobs and services - and some don't think the pain is worth the gain.
Pasco County Commission Chairwoman Ann Hildebrand complained this week the cuts were affecting the quality of life.
After hearing of the typical Pasco savings of $34, she said, "It's not a very big savings when look at what you have to give up."
Bill Newton, the executive director of the Florida Consumer Action Network, said the small property tax savings hardly seem worth it when measured against the hundreds of local government employees around the state who are losing their jobs because of property tax cuts.
Those employees are facing the same struggles with insurance and property tax bills, and won't be able to unload their homes because of the housing market.
"What a time to lay off all of these government employees when we're having this housing crisis," Newton said. "It's creepy how dumb it is."
Times staff writer John Frank contributed to this report. David DeCamp can be reached ddecamp@sptimes.com or (727) 869-6232.
Typical property tax savings
Property appraisers have calculated median savings for taxpayers under recently passed tax reductions. (Figures with a "+" sign indicate a tax increase).
| | Hillsborough | Pasco | Pinellas | Legislature's
prediction
|
Homestead property
| -$124 | $-34 | -$81 | -$174
|
Nonhomestead property
| +$44 | -$30 | -$138 | -$199 |
| Commercial/industrial | +$385 | -$87 | -$310 | -$941 |
| Sources: County property appraisers, Florida House |
[Last modified August 17, 2007, 23:59:25]
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Comments on this article
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by jeanne
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02/16/08 04:37 PM
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What I wanted to see was a reduction in homeowner ins. I have a huge wind deductible and other perils deductible and it is still high
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by Frank
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09/01/07 02:30 PM
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The make believe property tax relief bill served up by our elected officials is a perfect example of government making believe they've done something and then letting an ill informed voting public to decide. This plan is wrong on so many levels.
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by cindy
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08/30/07 09:43 AM
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this is all so confusing it is ridiculous. if we could charge a sales tax and not have to play these hardship games that we are on taxes, why didn't we? small amounts are easy to deal with and noone would be crying now, maybe we need to rethink.
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by Jerry
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08/29/07 01:42 PM
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In Ouerto Rico home owners do not have to continue paying proerty taxes after their homes (mortgage) is paid for in full! So why should homeowner's be subjected with property taxes after their mortgage is eradicated?
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by Jerry
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08/29/07 01:35 PM
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I do not have any children attending school in the Hillsborough County. So why should I be taxed for this and not get reimbursed or a tax incentive provided? What ever happend to the 18 Bil. Dollars collect from Lotto for education?
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by Jerry
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08/29/07 01:31 PM
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My Home Owners Insurance had increased by $550.00 every three (3) months in additionto a cost for Flood Insurance, what has the legislature done about the increases?
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by Jerry
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08/29/07 01:29 PM
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Good afternoon:
Is it possible to see the current Homestead exemption of $25,000.00 increased (amended) to $50,000.00 instead of having to select the Super Homestead Amendment?
In addition, what about the increasing Home Owners Insurance?
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by Ed
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08/25/07 01:54 PM
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The Governor and all his pals are simply a bunch of liars. First they promise insurance relief and we get absolutely nothing. Then they promise tax relief and at best it pays for a nice meal or two for a family of four. This is an outrage!
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by GK
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08/20/07 03:33 PM
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There's not much said about here about how much more is being paid by those who recently purchased existing homes. I had a 45% increase on a townhome. Once the buying public does the math on this one, it will further destroy the residential market.
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by Michael
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08/20/07 10:06 AM
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Why is it so difficult to understand.
Taxes are TOO HIGH (except for those who have been in their homes for 15 years).
They HAVE to come down.
Let's get on with the sales tax which is the only long term way out.
To all pundits:You are pathetic.
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by GH
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08/20/07 09:11 AM
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Now to the topic: this was such a little tax cut that I expected little to begin with, especially in Pinellas. That is why further reform is needed. So with all this said, why all the cuts and crying from cities?
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by GH
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08/20/07 09:10 AM
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How'd you get a Citezen's reduction? Mine stayed the same, which is better than nothing. 3k. Of course it confused me that I pay 3k for a 200k home while a relative pays 4k through another insurer for a 1 million $ home. Rate explaination? Anyone?
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by doug
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08/20/07 09:08 AM
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Charlie Christ is a snake oil salesman. He is the consumate politican that placates all and stands for nothing. When will the public wake up/
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by cielo
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08/20/07 04:06 AM
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No one is ever going to see significant, if any real, cutbacks. Part of the problem is that people can talk but they won't stand up. Look here for example, the comments here should be plentiful like the recent piece on Judge Lopez. Standup people!
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by MrsDale Piskie
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08/19/07 03:02 PM
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What kind of brake am I going to get due to the fact that I can't homstead my home there. I have a resisdance in Tarpon Fl. But the home in Miami dade was put in my name by my 92 year old father in law. Last year it cost him $73,000 in taxes.HELP
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by Jon
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08/19/07 02:28 PM
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My insurance increase by 40% (!) but I only saw a $40 reduction in my tax bill. I'm actually suprised that I got any tax reduction at all given the track record of the incumbents: ALL SHOW, NO GO! Vote'm out!
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by Dan
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08/19/07 10:27 AM
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The Insurance compnies have more than 1 lobbyist with money and perks for each legislature. They had a closed session open only to the lobbyists to create their Spin Machine. Surprise, Surprise, Where is the Sunshine Law?
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by Cal
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08/19/07 12:30 AM
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Boo, if Rubio's tax proposal passes you can use the tax savings to pay your property taxes and then some. On another note, $600 seem awfully cheap for property insurance. In fact $2400 seems cheap if your house value is over $350,000 imo.
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by John
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08/19/07 12:11 AM
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Since it did not match the hype, the Legislature needs to get back to work and make sure next time taxes will really drop big. Local governments needs to cut budgets. They were able to run gov't with nearly 50% less money in 2001, lol.
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by mike
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08/18/07 10:52 PM
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Boo Boo-if you remember it was Rubio that introduced no taxes for a sales tax increase but everyone cried foul.I was a proponent of the new homestead but gov in action makes me think maybe the cap is worth keeping,never know what behind door #3?
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by birdie
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08/18/07 10:07 PM
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SEan's comment is unbelievable. My Citizens insurance almost doubled. I had not heard of anyone who had their premiums go down.
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by magic
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08/18/07 08:27 PM
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If we continue to elect pretty faces and empty suits, we will get exactly what we currently have.
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by Jim
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08/18/07 05:22 PM
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Are we seeing any trends with Mr. Plastic, tanned, Charlie....All image no substance...This guy all Politician on every subject.
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by Donna
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08/18/07 04:21 PM
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Insurance companies control politics & everything you do. Where you live (homeowners), who will lend you money(homeowners), where you work (health insurance), who your doctor is(health insurance), what treatment you get(health insurance).
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by Pamela
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08/18/07 04:18 PM
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This is just another joke our legislaters have on us. I checked the county website's Super Homestead calculator, believing my taxes should be -0-. SURPRISE! They will be higher than what I'm already paying! A special session for this?!?! What a waste
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by tom
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08/18/07 04:12 PM
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A Perfect example of why the goverment is incompetent except in collecting and/or raising you're taxes. So go ahead and vote for the Dems cause they promised to raise taxes.
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by fred
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08/18/07 03:43 PM
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Perhaps what the city and the county don't understand is that the tax cuts passed by the state were the MINIMUM that these governments had to cut. NOTHING is stoping either of them from spending less and cuting taxes more.
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by Pat
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08/18/07 03:11 PM
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I received my Trim Notice this past Friday my neighbors could hear me SCREAM. All this talk about cutting taxes and yes my homestead taxes did decrease about 10% and then the big surprise when my two rental homes and six vacant lost increased by 20%
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by Aida
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08/18/07 01:33 PM
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Same here, my insurance actually tripled over the last 3 yrs and my taxes are that of a home up north in the 300,000's! Anyone notice the EXODUS going on here in FLORIDA?? My neighborhood is baren now, no one can afford to stay, including me.
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by Jason
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08/18/07 12:53 PM
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I am so sick of hearing these so called legislators cry about having to cut jobs and letting people go. First of all if anyone needs to be let go start at the top. Their obiviously unable to do there jobs.
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by mike
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08/18/07 11:49 AM
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the superhomestead is not the answer. we need to put that 2.5cent sales tax on the ballot and give the people a choice.
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by MIKE
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08/18/07 11:43 AM
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DAN'S ABSOLUTELY RIGHT! I'M KEEPING MY SOH CAP CUZ THERE WILL SURELY PROPERTY REASSESSMENT FOLLOWING THIS PROPOSED DECREASE. ELIMINATE THE PROPERTY TAXES AND PROMOTE THE SALES TAX. AT LEAST "WE" CAN CONTROL SOME OF OUR SPENDING! COUNTY/CITY CAN'T
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by James
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08/18/07 10:56 AM
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January 29th can't come fast enough for real tax cuts.
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by DR
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08/18/07 10:50 AM
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You cannot lower insurance rates when you accept money from insurance lobbist. When you accept their money, you are bought and paid for by them; not the people.
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by Boo Hoo Hoo
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08/18/07 10:32 AM
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I'm so sad or happy about this insurance/tax mess. My insurance is only 1200 a year. But if i had to pay any tax it would be more like 27 dollars a year. I've been here since 1983 and i like it just fine. All my exemptions help to keep it low
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