So the Truth In Millage (TRIM) notices are arriving and many are surprised to see that their property taxes did not go down, especially for homesteaded property. Back in January, when Amendment 1 was being hotly debated, I equated my possible tax reduction to that of the cost of a few trips to Publix (wow). So let’s see how Amendment 1 helped me this year:
My proposed property taxes for 2008 are $260.12 lower than my 2007 tax bill (OK, less than 2 trips to Publix). Sure, the additional $25k exemption helped, but at the same time my assessed value went up. Went up by 3%. How can that be? How can that be while the “just market” value plummeted? Well, since I’ve enjoyed so many years of capped savings (and I have enjoyed 12 years of them) the County has the right to recoup some of those savings. The tax code gives them the right to increase my assessed value by up to 3% each year, no matter the market conditions.
So even with a (slightly) lower millage rate this year, a doubled homestead exemption, and a plummeting market value, I saw very little change in my tax amount. Many homesteaded homeowners are seeing increases in their taxes (the $50k exemption is outweighed by the 3% increase in the assessed value).
An editorial in The Tampa Tribune this morning states that “It’s blatantly wrong to increase the taxable value of homesteaded properties when market values are dropping.” Is it? If yes, then it must also be blatantly wrong to limit a homestead’s increased value to 3% when property values are (were) rising more than that. But don’t get me wrong, I did enjoy the limit.
The fact is that the property tax issue is still a mess and the system needs a complete overhaul. So many homeowners expected more from Amendment 1 but did not get it, and for many taxes went up. I can’t bitch too much about not getting more of a reduction. My reduction came in the form of protection over the last 12 years. But for the guy who bought the home next door last year? The inequity still stands out as a problem that was not addressed with Amendment 1, which was hailed as a beginning point for property tax reform in Florida. So what’s next?
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