Special to Citrus Daily

Property Appraiser Geoffrey Greene says when Citrus County taxpayers receive their Truth-In-Millage (TRIM) Notice, the single most common question is, “How can my tax bill go up, when my property’s market value has gone down?”

“This is undoubtedly one of my greatest frustrations, and I know it is for taxpayers as well,” Greene said. To understand this phenomenon, he said, an understanding of the three values reported is critical.

The reported “market value” does not directly control a longstanding homesteaded property owner’s tax bill. “Assessed and taxable values” are what drive the individual’s reported 2009 tax scenarios on the TRIM notice, Greene said.

Taxpayers who have had homestead exemption for the longest period of time are the most frequently affected. A quick review of a sampling of these cases indicate that tax bills will generally increase between $10 and $30 for 2009, if the proposed millage rates are approved during September.

Typically, those who bought and/or had their homestead re-established for some reason during the peak value years (since 2004-05) are the ones now seeing tax relief due to drops in market value. Those same homeowners also paid the highest taxes during the boom years because their market and assessed values were virtually the same.

The millage rates play a key role in the equation needed to lower a homeowner’s tax bill, Greene said. At the local level, a taxpayer may have recourse with the taxing authorities setting millage rates as part of their annual budget process. That is why Information is provided on the TRIM notice advising the public of the dates and times of those hearings.

The major reason longstanding homesteaded property owners are not seeing a reduction in taxes, even while market conditions are declining assuming their market value has dropped, is the recapture provisions of “Save Our Homes”. The provisions of Section 193.155, F.S., mandate an annual increase of 3% over the prior year, or the Consumer Price Index (CPI) for Florida, whichever is lower, be applied to assessed value.

For 2009, the CPI applies, since it is lower -- it is virtually zero ( 0.1%) this year.
As long as the law stands as written and interpreted, this is what happens. “That is why, even before being sworn into office, I pressed for legislative change ahead of the 2009 session,” Greene said. “Several bills were filed, but the shortage of funding this year dominated the session, so the proposed legislation did not make it out of committee.

“Our local delegation either sponsored or supported bills in 2009 that would have insured that taxable values would not go up when market value dropped. I urge taxpayers to join me on this issue in 2010. No voice has more power than that of the taxpayer.”

If these down market conditions continue, until such time as market value drops to the assessed value on homestead properties, no reduction in assessed value can occur, Greene said. Once the two values (market and assessed) are equal, then assessed value will drop at the same rate as market value. Assessed value can never exceed market value.

“That may be the only good news under the current provisions of the law,” Greene said.