by Bradley Parsons
Staff Writer
City and County officials say that a state legislator’s proposal to change the way property taxes are advertised would confuse taxpayers and has the potential to stifle City growth.
State Rep. Don Davis’ proposed bill received a tepid reception from the City’s Finance Department, following its initial circulation around City Hall last month. Finance Director Cal Ray said the bill, by requiring the City to account for new construction when it assesses property value, would give the perception of relatively large percentage increases in tax rates.
“The net effect would be we’d have to advertise a higher tax rate even though we haven’t changed our policy,” said Ray. “Careful readers would notice the percentage increase and deduce, ‘We’re being taxed more.”
Florida’s Truth in Millage law requires taxing authorities to advertise how much tax will be paid on every $1,000 worth of property. Municipalities have excluded new construction from their tax base value since 1992. Ray said the County exempted $844 million in new construction from the tax rolls last year. Including that money in the future would make rate increases appear more glaring, and create headaches in City Hall, according to Duval County Property Appraiser Jim Overton.
“I think it would cause additional problems, particularly for the taxing authority that has to set the rate to meet budget requirements,” said Overton.
“They would have to advertise a bigger tax increase to meet the gross value of the tax base. You’d hear [Mayor John] Peyton moan, and every other mayor across the state, about having to advertise that kind of increase.”
Rep. Davis said he wasn’t sure whether he would introduce the bill during the upcoming March session. He will meet over the next two weeks with City and County officials throughout his district to determine if the bill will serve their interests.
So far Davis said property appraisers have generally supported the idea – although Overton opposed it – while taxing authorities have generally stood against it. Some property appraisers he said are tired of taking the heat for tax increases.
As taxing authorities have strived to keep tax rates low, tax revenue has increased statewide largely due to climbing land–value assessments, said Davis.
That scenario played out in Duval County in 2003. Peyton proposed to cut tax rates by a third, but tax revenues actually increased by about $17 million because of increased land values.
Davis said he was concerned the legislation could further confuse taxpayers and said he will wait until City and County officials have their say before deciding whether to push forward with the bill. He would have to introduce the bill by the end of March’s first week.
Davis has already introduced his limit of six bills for this year’s session, but he said he would find a way to get the legislation in play if it was in his district’s best interest.
“I’ll sponsor it, or I’ll get someone else to sponsor it, if it’s the right thing to do,” he said.