As home values rise, property taxes increase
Many Florida property owners without a homestead exemption – and some with an exemption – have seen their property taxes go down along with property values. In some communities, the tax rate has been raised to offset potential losses; in some communities, the city learned how to get along with less money.
With property values starting to rise in many Florida communities, however, property taxes will follow. Local governments can then either collect more money, or they can lower the applicable tax rates in order to offset increases for homeowners.
In Lauderdale-by-the-Sea, for example, the town manager has suggested a lower tax rate. Commissioners are now considering it.
In theory, the 1.7-percent proposed reduction in the property tax rate would not lower the amount of money Lauderdale-by-the-Sea takes in since the base number – local home values – went up. A final decision will be made in September.
“Depending on the decisions the commission makes in reviewing this proposed budget, it may be possible to go a bit lower,” according to Town Manager Connie Hoffmann.
Source: Sun Sentinel, July 24, 2012, Larry Barszewski