Even though Levy County Property Appraiser Oz Barker may be lowering values on the 2010 tax roll, it will not mean lower assessments for 7,235 of the 12,315 properties that receive homestead exemption in Levy County. Instead they will receive a 2.7% increase in their assessed values for the coming year and a tax increase unless the taxing authorities lower the millage rates this fall, and that is unlikely since Barker`s office estimates that the overall taxable value that the taxing authorities have to work with is going down by approximately 6%.
" We received many phone calls in 2009 when the increase was 1/10%, I can only imagine the calls we`ll get this year when the proposed tax notices go out and everyone knows that the real estate market has fell off drastically and yet they are seeing an increase in their assessments," Barker stated.
This is happening because of a Florida Administrative code that was placed into effect in 1995 by the Governor and cabinet following the implementation of the "Save Our Homes" constitutional amendment, which placed a cap of increase on assessment of homestead properties at 3% or the annual consumer price index (CPI), which ever is less. Rule 12D-8.0062 of the FL. Administrative Code, referred to as the "recapture rule," directs the County Property Appraiser to raise the assessed value of a homestead property by the maximum of 3% or the CPI, which ever is lower, on all homesteaded properties assessed at less than full market value, whether or not that property`s market value increased during that calendar year. In the years of a flourishing real estate market this kept homestead properties from rising above the limitations set forth by the "Save Our Homes" amendment, but now in years of the real estate market down fall it is allowing the assessed value savings to catch up to the market values.
For example, a property`s market value did not change or possibly even dropped, but since it`s assessed value remains below market value because of the "Save Our Homes" cap, the Property Appraiser must increase the assessed value by the annual limit to bring its value closer to market value. The CPI was set at 2.7% this year and that will be the limit of increase to be applied. This only applies to residential properties that have homestead exemption.
There were 4 bills introduced during this year`s legislative session (HB 0027, HB 0039, SB 2650, & SB 0718) that would have prohibited the increase to assessed values to homestead properties when there was a decrease in market value, but all died in committee and never made it to the floor of the House or Senate Chambers.
"It`s a hard pill to swallow when the economy is down and people are hurting financially, and they get an increased tax bill on the place they live at. We don`t like it any better than they do but it`s the law that we`ve been given to uphold." states Barker. He has directed his staff to be as aggressive as possible in analyzing the market conditions and to give the greatest decreases possible to the appraisals county wide.
"We are in a year of an in-depth audit from the Department of Revenue, which happens every other year, and the team that has been sent to examine the tax roll for compliance is about finished with their appraisals and they are ready to set down with us and discuss their findings. We expect to be found in compliance and for our tax roll to be approved. They have been great to work with and are people just like us who are hurting themselves and can see and recognize the distress of the real estate market at this time," states Barker.
He adds that the greatest challenge in the appraisal process this year is the lack of sales that can be used as comparables. "We are seeing a lot of foreclosures and deeds in lieu of foreclosure, which cannot be used to determine the market conditions. We would like to be able to go down as much as possible but we need qualified sales that indicate proof of the decrease." He also thinks that the next year will bring about more decreases in the market, because the sales that have come through his office since January 1 until now are continuing to show a stagnant real estate market. "We will continue to aggressively analyze the market conditions and respond accordingly."
He encourages the citizens of Levy County to call his office when they have questions and don`t understand the processes. "We are here to serve the taxpayers and citizens of Levy County and welcome your questions and concerns and will do all that is possible to explain and help you to understand the process and to make changes when they are justified." . | 