Q: Are property taxes rising in Tampa, Florida?
A: The Tampa City Council shot down Mayor Jane Castor’s proposal to increase the property tax rate 16% in a 4-3 vote during Tuesday night’s meeting.
With the city council’s vote, Tampa’s current property tax rates will remain the same.
Caster’s plan, which would have been only the second time the city raised property taxes since 1989, would have added about $232 annually to the average homeowner’s tax bill. The mayor had proposed using the budget to address the constantly growing backlog of maintenance projects around the city along with public safety, street and sidewalk repair, public parks and affordable housing.
Local residential property taxes are calculated by a millage rate that is applied to every $1,000 of the assessed “fair market value” of the property.
“The highest millage rate in Tampa history was in 1982 and it was 8.16%. The last increase was in 1990,” said Stephen Hachey, attorney at the Law Offices of Stephen K. Hachey, before the council blocked the proposal. “The current rate is 6.2076% and the proposed rate [was] 7.2076%—really smack dab in the middle between the current and the historic high.”
The same millage rate applies to all homeowners “but there are different exemptions available,” he said. “The one a lot of people get is the homestead, which takes up to $50,000 off of the assessed value.” A homestead in Florida is “loosely defined,” he added, “but essentially a homestead is your primary residence.”
Many Tampa residents will still see their property taxes rise modestly since home values, which are generally reassessed every January and whenever a home is sold, are rising. The Save Our Homes property tax cap currently places a 3% cap on annual increases in the taxable values of homesteaded properties.
“On a homestead property, the assessed value can only increase 3%,” Hachey said.
The axed tax-hike proposal would have raised Tampa’s property tax rates higher than both nearby Orlando and St. Petersburg. It would have net the city an additional $45 million a year in general revenue.
Source : MansionGlobal