2010 Property Tax Information

2010 County Property Tax Summary - PRELIMINARY

For the 2nd year, the Florida Association of Counties has compiled the 2nd annual proposed property tax numbers for counties across the state to reflect the reductions and changes that have occurred the past four years.

Counties primarily provide public safety, fire, emergency medical services, public record-keeping, jails, parks, libraries, health care, economic development, comprehensive planning, and roads, just to name a few.

Each year, unlike the state and federal government, counties are required to establish the property tax rate needed to provide services for their community. State and federal government work within the confines of a predetermined tax rate. For instance, if the sales tax rate is 6% then tax revenue is determined by how much is sold and the state budget is determined based off the revenue expected.

County governments have the opportunity to determine the costs of services mandated by law, critical public safety services and important services then set the tax rate that will ensure these demands are met. However, it is evident in the following report that with the drop in property values – more than 20 percent combined over the last four years – most local government did not raise property taxes at all and only four exceeded the statutorily mandated roll back rate.

When local governments begin establishing their budgets they are required by the end of August to submit to the state their maximum proposed millage rate. Once that rate is established most counties then debate their proposed budget and millage rates making many changes along the way. Following the debate a minimum of two public hearings are held where citizens and community leaders can discuss their concerns and support of budget items.

Throughout the budget process the millage rate may change many times, however, it can not exceed the rate given to the state in August. Therefore, many local governments may establish a higher preliminary millage rate to provide more room for debate and discussion and then will reduce that rate upon the final adoption of the budget at the end of September.

This report covers only the preliminary millage rates and a revised report will be completed after the first of the year when final millage rates and property values have been reported and verified.

Three major factors have impacted property taxes in Florida over the last four years: the decline in property values, the implementation of the roll back rates (2007) and Amendment 1 (2008). This year alone counties have reduced revenue by nearly $583 million (6.05%). In four years, that reduction totals $2.5 Billion or 21% . These reductions have resulted in major workforce cuts as well as cuts to all levels of service.

With property taxes influenced by the decline in property values as well as previous changes to the property tax system, 2010-11 property tax revenues are just slightly above 2004-05 revenues (see next chart). If current economic trends continue, counties will remain near or below 2005-2006 revenue levels until after 2013-14³.

The above chart also reflects actual property tax revenue numbers in comparison to the guidelines established by the Legislature in 2007⁴. This chart clearly outlines that economic conditions and existing property tax changes have realigned property tax revenues with the trend lines established by the Legislature. Based on proposed millage rates counties are within $290 million of the statutory trend line.

It can be reasonably argued that the jump in property values from 2006-2007 was an anomaly and the free market has leveled tax rates in such a manner that will likely keep local government revenue below any policies that the legislature has or may enact.

This year 54 counties (81%) will collect less property tax revenue and 13 counties (19%) will collect more property tax revenue than in 2009-10. Of those 54 counties, 13 of them have reduced their tax revenue by greater than 10%, 20 have reduced their tax revenue greater than 5% and 21 have reduced their tax revenue between 0-5%. Of the 13 counties with increased property tax revenue, 11 are counties with a population of less than 75,000. Only one, Sumter County, increased their revenue by greater than 5% (6.24%).

If you were to look at these numbers in comparison to the statutory rollback rate, you would see that 58 counties are below the rollback rate, 5 counties met the rollback rate and 4 counties exceeded the rollback rate⁵.

Florida’s strength is in her diversity and her counties paint that picture. While every county has made reductions over the last four years, each has done so in a manner that serves the unique community they represent.

The Florida Association of Counties (FAC) is committed to not only serving our members but providing our legislative partners with accurate and critical information needed to make ongoing tax decisions. It is clear that counties, just as the state, have been forced by many factors to make dramatic reductions and they have done so accordingly.

Historical Tax Data

[1] Data for all 67 of Florida’s counties is based off of their preliminary property tax data submitted to the Florida Department of Revenue on Form-DR420. The aggregate millage rate will likely decrease once final millage rates and property values are set at the end of 2010.