Notice of Proposed Property Tax – Wow!!!

Understanding how the system works doesn’t ease the pain

August 24, 2007 – Palm Coast, Florida – This week, the Flagler County Taxing Authorities mailed the 2007 Notice of Proposed Property Tax. Combine the over-publicized downturn in the housing market with the message from Tallahassee that your state representatives have mandated property tax relief and you have a recipe for expectations of lower taxes. Nearly everyone has found those expectations to be unfounded. Many have contacted me regarding increases they believe are unjustified.

The Flagler County Property Appraiser follows strict procedures in certifying the tax roll. Here are some facts that may help you understand assessment and tax changes:

By law, the 2007 tax roll is required to be derived from 2006 property values. The appraiser uses sales numbers from comparable properties to derive your assessment. Sales in 2006 were far from robust, but the decline in local property values is mostly a 2007 phenomenon.  In other words, the assessment numbers are about one year out of sync. If your property’s value has dropped this year, it should be reflected next year as a reduced assessment.

If your house is under-assessed by virtue of the “Save Our Homes Amendment,” your assessment can still increase by the allowable amount (the lesser of the change in the CPI Index or 3%) even though your property has decreased in value. You will simply be under-assessed by a lesser amount than last year.

You have until September 14^th to address any issues you have with either your assessment or your exemptions. Contact the Property Appraisers office at (386) 313-4150.

The proposed tax is derived from proposed budgets of the various taxing authorities, not by the County Appraiser. To understand these budgets and/or to express your views, you should contact your elected officials directly or attend the public budget hearings. The hearing schedules are noted on your Notice of Proposed Property Tax.

Your tax can go down even if your taxable value goes up. If the total taxable value of all property in the taxing district increases sufficiently, the proposed millage rate can decrease. The net effect can result in a reduction in taxes. The millage rate is determined by dividing the total budgets by the total taxable value of the applicable taxing authorities.

Here are the Flagler County numbers:

• Total assessed taxable value 2007 (preliminary) – $12,223,349,867
• Total assessed taxable value 2006 (final) – $10,903,361,208
• Increase (preliminary) – $1,319,988,659
• Increase attributable to new construction – $826,482,076
• *Increase without new construction – $493,506,583

* Includes increases in value attributed to subdivisions. When existing parcels are subdivided, they are reassessed based on their higher value.

Remember; take your assessment concerns to the Property Appraiser’s office. Take your tax rate concerns to your elected officials.