Heads they win, tails you lose

See Will Van Sant's article this morning about the fact the tax roll has taken an unprecedented plunge in Pinellas County. It's a combination of two factors: the economy itself, and the new tax exemptions passed recently in Florida.

But I wanted to call special attention to a quirk in Florida law that Will mentioned in his article as well -- if you have a Save Our Homes tax break, the government will still be able to INCREASE your tax assessment, by up to 3 percent next year!

That's because Save Our Homes was originally intended as a "speed limit" on how fast the government could increase home values. Unfortunately, its framers didn't realize that when values were going down, the government would still be able to impose that 3 percent hike!

Two ways to look at this: Save Our Homes homeowners are still getting a big tax break; this 3 percent increase only allows the government to "catch up" a little. The other way is that it's perverse that the government can still increase taxable values when market values are going down.

I wrote a column about this last year.

Comments

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Don't know if you caught the story a few days ago, where state rep Juan Zapata (R) suggested they sell off state "treasures," stored for historic preservation, to balance the budget. The legislation fizzled when they found that Mel Fisher had kept all the gold. LOL. However, it brings to mind just how far our legislators are willing to go to save our taxpayers. What next? Sell off State Parks to developers? County could do the same...betcha Terra Verde would love to annex Ft. DeSoto Park. St. Pete can open up Boyd Hill as soon as it rids it of the few remaining gators and eagles. The possibilities are endless!

When I purchased my home 3 years ago I budgeted my SOH 3% increase out 10 years based on what I would pay in taxes - not what the former owner paid. I also made my best effort to account for insurance increases, salary increases and inflation based on local historical averages. Add in additonal money as a savings buffer to account for unfroseen circumstances, and I was comfortable knowing I would be able to afford my home in coming years.

That's the benefit of SOH.

Without SOH I would have seen a 10% increase in property taxes in year 2 and an 8% increase last year based on the rate of "flipping" in my neighborhood (most of which was a scam by a single property owner). I could never have absorbed that 18% compounded increase, and would have lost my house.

This is also the benefit of SOH.

So, if I have to stick to my plan instead of saving a couple hundred bucks next year . . . in exchange for all this security . . . I'll take it! No problem whatsoever.