PROPERTY TAX INCREASES
Stupid us. While we thought that, the State legislature was stalled in lowering the property tax rates, who noticed that they quietly raised the School Board tax by 7.2%, which, since the school tax which is currently roughly 40% of the total property tax, will now be raised o include the additional 7.2%. The 3% cap is only applicable to increases in assessed value but the School Board and Bert Fish will certainly increase the millage rate in order to keep the same flow of money they will lose on the assessed value of non-homestead protected property. The millage rate is not capped! OK, this seems like Greek, but we can clear it up the gobbledygook with an example or two.
1. Let us say in 2006 the just value appraisal for your property was $300,000 but your homestead exemption and Save-our-home has capped your taxable assessed value at $100,000. The current millage rate is 19.54 mills and you pay a tax of $1954 on your $100,000 homestead exempted property. Your “just value” assessment, $300,000 shows what the property appraiser believes is the fair market value of your property.
2. Your neighbor bought an identical house next door in 2005 for $300,000, and applied for homestead exemption. His property was given a tax value equal to 85% of his purchase price ($300,000 minus 45,000= $255,000) and he or she has a $25,000 exemption for 2006 which yields a taxable value of $230,000. This resulted in a tax bill of about $4,500 in 2006.
3. Now, the fair market value of your neighbors house and your house in this real estate market declined by about 20% and both are now valued for January 2007 at $240,000. Logic suggests that if the millage rate is not changed, your tax will not change since you are paying on an assessed value of only $100,000. However, logic does not always prevail in this arena, and your assessed value may be increased by the 3% allowed by the cap to &103,000. While his tax will go down by 20%, and he will pay only about $3,500 instead of $4,500 ($300,000x 0.8=$240000, $240,000x0.85=$204,000, $204,000- $25,000=179,000x 0.1954=$3,498). If the millage rate remains, the same he saves about $1,000 and you may pay about $12 more than last year.
Now we go to the School Board. The School Board still 'needs' the money they collected last year plus the 7.2% mandated by the State. The School Board's share of the 19.54 millage rate was 7.685 and Bert Fish took 2.216, for about 9.901 mills, which is half of the property tax rate you paid last year. This would not be touched by the current actions of the State legislature. Bert Fish also 'needs” the money so it can tell the newspapers that it runs in the black. Well this puts tax reform in a negative light because the School Board was mandated to collect another 7.2%. By the way, it probably spent that money last week by giving a 5% pay increase to teachers. If these institutions do not cut their spending, over half (in fact, almost 60% of what you think you will save), will be recovered by raising the millage rate from 19.54 to about 25.00 mills. This increase will be to “compensate” the School Board and Bert Fish for the loss of revenue from devalued non-homestead property. So, instead of the homesteader paying $1954 and the non-homesteader paying $3,500 in the example above, if the School Board and Bert Fish must make up a combined loss of $1000, because the assessed property value has gone down on non homestead assessed property, both the homestead and non-homestead owners will each pay an extra $500 in taxes if there is a the new millage rate. It might be even worse if they decide to collect even more money since there would be nothing to prevent them from raising their share of the millage rate even higher. All you can do is get mad, or replace them at their next election. The School Board plans to give the Superintendent another big pay raise on top of her current $200,000+, pay, and benefits. You might tell them to cut expenditures and that this is not the year to raise administrators’ salaries even if deserved, and perhaps teachers pay raises should have been limited to the cost of living inflation value of 4%. But that too would be a novel idea!
One could argue that this would be a more equitable result than the homesteader getting all of the benefits would. Nevertheless, it is not what we think you expected from property tax reform. Just for a fun thought, the city could recover all of what it might lose with; say a tax district for fire services, if you let them get away with it. If you want to see how this works, go to the Volusia County website, go to finance, and look for the County fire tax districts that are included in the total property tax component for Volusia County. Rise up and be heard!
FLASH: On Friday the School Board's financial guru proposed a $10,000,000 cut mainly though cut backs in personnel. Part of the proposal apparently included a statement that the 7.2% mandated State increase would generate about $18.000,000 but that had already been allocated for a new elementary school and State mandated reduction in class size. Hearings will be held and several groups will oppose some or all or of the cuts. If we have figured correctly, assuming all of the cuts proposed are adopted, this would leave the School Board $8,000,000 short, assuming no other increased costs in fuel or supplies, which still means a significant increase in the School Board millage rate.
ANOTHER FLASH: The Florida Association of Counties playbook provides our elected and appointed officials with talking points to support the sky is falling theme for not reducing government spending, and predicting the dire circumstances if significant reductions in spending are required. To the rescue comes the House Majority Office, Representative Marty Bowen, the House Majority Leader. THE HOUSE OF REPRESENTATIVES HAS NOW GIVEN US, THE CITIZENS, TALKING POINTS TO REBUT THE COUNTIES AND CITIES! Go to the LINK provided and read what they have to say.
“Hello all,
I would like to share with you a recent experience I have had with the Volusia County School system. Several months ago through a contact at Disney I was able to secure a large computer donation for my son's school, Sacred Heart School in New Smyrna. Recently, Disney has again made these computers available and since my son will be attending public high school next fall, I decided to extend the offer to his new school. I should also add that several public schools in neighboring counties have also taken advantage of this offer.
I contacted the high school and the offer was well received, however, I was informed that it would need to be cleared through the MIS area. Well, the IT” professionals" at Volusia County Schools have declined the offer stating that these computers would cause a security risk to their network. Folks, the computers are provided completed wiped and restore CD is provided upon request. Additionally, if they truly believe that there would be a security risk to the network then I'm sure the computers could be used as standalone in classrooms, for PowerPoint presentations, even for kindergarten, etc. Again, I would like to reiterate that several neighboring counties, Orange, Osceola, and Seminole County schools have taken advantage of this offer - why not then Volusia County?
I have to say that with all the talk about the lack of funds and the need for budget cuts, I was dismayed that they would decline this offer and truthfully, I have a difficult time accepting their rationale. I am in the process of preparing a letter to Margaret Smith and the entire School Board to express my concern.”