Citrus County Property Appraiser Geoffrey Greene announced today the Annual Assessment Rate Change based on the Consumer Price Index applicable to Save Our Homes of 3 percent for 2012.

For 2011, the rate was 1.5 percent.

This was just officially released yesterday by the Florida Department of Revenue and is the rate which determines the maximum increase a homeowner would experience, when a property is capped under Save Our Homes and the assessed value is less than the market value.

For 2012, fewer than 10,000 homes in Citrus County are estimated to be subject to this rate known as “recapture”. The number affected has dropped each year from a peak of over 40,000 homes as values have become more reflective of current market conditions. Greene comments, “This issue of recapture has been the most common question that property owners ask when calling my office.”

Each year this rate is different. For those still affected by “recapture” in 2012, assessed value will go up by 3 percent, even though a property’s market value may still be dropping. Greene advises, “This year’s rate is the highest increase that I have seen since taking office in 2009.” Voters will want to consider this issue, when voting on Constitutional Amendment No. 4.

The amendment which will be on the ballot in November would stop such increases, if approved. A yes vote would stop the practice. Property Appraiser Greene went on to state, “if the amendment should pass, homeowners will still retain their protection during a rising market condition. The 3 percent maximum cap will remain in full force and effect, if values began to climb again. That protection is not affected by the proposed constitutional amendment.”

Each January, the Property Appraiser’s Office awaits the annual DOR announcement to see what rate will apply for the given tax year. Technically, this rate comes from the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index (CPI) for all urban consumers, U.S. city average, all items, issued for the preceding calendar year, as of the month of December.

According to Greene, “looking ahead to this upcoming 2012 tax year, approximately 80 percent of all the homesteaded properties in Citrus County will no longer be subject to recapture, which means they are potentially eligible to see tax relief, at least based upon values.” According to estimates from the Property Appraiser’s office coming from early market analysis for this 2012 tax year, there will again be a further reduction in the number affected compared to 2011. Early forecasts suggest that about another 9,000 homes will come out from under the ‘recapture rule’, which subjects homeowners to this year’s 3 percent rate increase.

Greene concluded by saying, “an increasing number of homesteaded property owners will have the potential to be able to realize the benefits of this market. No longer will they see the continued ratcheting up of value, based on the annual Save Our Home recapture rate as set by the state."