Well, I opened my mailbox today, and there they were, the dreaded "Trim", Truth in Millage Notices of Proposed Property Taxes. No one really knew how the declining values in 2008 and 2009 were going to affect our taxes. We were all hoping for a decrease in taxes to fall in line with the decrease in property values, but for many that may not be the case, as this means less revenue than previous years to the taxing authorities.
On my primary residence, the market value dropped by over $30,000, although the assessed value increased by $100. So, my taxes are proposed to increase this year by $150 to $200. This is allowed based on a 1995 ruling stating that even if a property value does not increase or if it decreases, as long as the assessed value on a homesteaded (owner occupied) property is less than the market value, assessed value can be increased by a maximum of 3% per year, under the Florida Save our Homes program.
On non homesteaded properties, there has now been a 10% cap placed on assessed values. This means that owners of second homes, investment or rental properties will not see more than a 10% increase of their assessed value on their property each year. In my case, based on the proposed bills I have received on my rentals so far, my taxes have dropped anywhere from $90 to $350 per property. This is not surprising because my taxes at the peak of the market in 2005 nearly doubled on some of my rentals over a two year period of time (this was before the 10% cap was in place). So, taxes had no where to go but down.
For owner occupied properties, I have a pretty good idea that there are going to be many disgruntled homeowners that anticipated their taxes to drop with the drop in market values. However, they will instead see increases.
If you have any questions regarding your proposed tax bills contact the Brevard County Tax Collectors Office at:
321-255-4440 in Melbourne
321-952-4574 in Palm Bay
321-690-6880 in Viera
321-264-6700 in Titusville
Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate
Brevard County Real Estate & Investing
I also buy, sell, rent, own and manage Investment Property.
Hi Sandy, it is a very tough pill to swallow when home owners see the values of their homes declining but the assessments having increased! It's the paradox of the "Save our home" provision. As to the Trim notices, they came to us last week and I haven't opened mine yet!
We have a proposed $1100 a month decrease a year on our taxes which is great, the value they have our place at isnt but not complaining. However you can contest your value until the 15th.
Hi Sandy, Well, what you saved on your rentals you get to give back a little more on your home -- I guess there will always be taxes, and no I don't imagine people will be very happy about them.
How property taxes are determined is probably one of the least understood topics for homeowners. And I don't see many local governments going out of their way to educate them, either.
For the first time in years, I was actually thrilled to open my TRIM notices this year. My homestead did see the assessed creep up the 3% allowed by law, but my rental properties saw their assessed values plummet. One of the properties that I fought saw hard against last year with no luck saw its assessed value drop 25% (over $1000 in taxes) this year. My wallet feels a whole lot thicker this year so far. Whoo hoo!
Hi Sandy
Thanks for sharing your insight on the tax issues.
Good luck and success.
Lou Ludwig
I have been busy helping my clients work on lowering taxes...
Just a thought this Saturday,
Paul
Silvia, Save our Homes does make taxes perplexing to many. So many anticipated their taxes to drop, but they aren't in most case for owners of homesteaded properties. You're so funny - you haven't even opened your tax bill yet. Are you dreading it?
Heather, Thanks for stopping by.
Mary, That's a good way of looking at it- the savings on some of the rentals will make up for increase on my primary residence.
John, I agree. I think that much of the money has already been spent and allotted for, so we weren't going to see any huge drops. Yes, taxes are very misunderstood.
Rob, Great job on fighting to get that property down. I haven't seen any of my taxes plummet. They certainly haven't dropped as much as they went up in the peak years. Funny how that works. But I didn't expect them too.
Lou, I think tax time is one of my least favorite times of year.
Paul, People can protest their taxes if they feel that they are paying too much.
Sandy,
The verdict is still out as to whether or not ours have gone up or down. I think they should go down but of course I am probably wrong.
Ann
Sandy, I have been encouraging clients to protest their property taxes as well, some of them are paying too much because of inaccuracies in the date from the auditors card! Not to mention dropping values because of the decline!
HI Ann, It will be interesting to see how it goes there. All are hoping their taxes decline.
Hi Caren, I know that many have and will protest the amount they are paying. Have they been able to get their taxes down?
Sandy,
The owners in St. Louis County did get a small break. Hopefully the trend continues.
Ann
Sandy the greedy hand of government doesn't like to cut back at all. Thousands of public workers depend on your tax dollars from paycheck to retirements.
Hi Ann, Well, that certainly is good to hear. I'll take any kind of break on taxes.
John, I believe that many anticipated taxes to drop. Although we knew better, because much of that money has already been spent, before it's been collected.