Politics

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

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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]