I've always been curious to know exactly what property tax values are in Southwest Florida counties. After reading another dismal real estate article in the Manatee Herald Tribune, I now have a better idea what those figures are. Property taxes in Manatee County are most commonly taxed at a rate of 1.7% of the homes purchase price. These taxes are reassessed on an annual basis to determine new tax bill figures, minus any deductions you may be afforded for homestead exemptions, disabilities, etc. (Categorically there are a number of options residents may qualify for to receive assistance in the cost of their property taxes). Property tax rates can be higher in certain areas than other. Bradenton Beach, Anna Maria Island, & Holmes Beach would be jurisdictions of higher property tax brackets, taxing at rates as high as 2% of the purchase of the property. Now, let's analyze how this information and these figures will tie your tax dollars into our local government. Our local government provides many excellent services with your tax dollars. They provide upgraded schools, quality roads, public libraries, parks & recreations, and many other amenities to Bradenton's residents. The local government entities are as much a business as a real estate company or powerhouse retailer. They have balance sheets, and cash flows that need to be organized, employees that need to be paid, retirement plans that need to nurtured, & all this revenue that fuels these costs come from your tax dollars. In a slowing market, do these government agencies suffer like the rest of the economy? Absolutely. With homes depreciating in value, new tax bills are being slashed and these government agencies are not seeing the bottom line, as they have years in the past.
Last year Manatee tax bills accounted for $46.8 billion in collections. The average home selling for $320,000 just a year ago, is now selling for $265,000, with predictions of this year depreciating a further 10-13%. That home in the above example will be selling in the low $200ks by 2009, tumbling tax revenues another $22 million+. Areas where property values were more inflated in the first place are suffering greater losses in value. Those notable areas are, Lakewood Ranch, beachfront property, new construction homes east of 75, in subdivisions like Heritage Harbour. With this loss, what could be expected from this government service industry, in terms of new operations? Local taxing authorities are predicting a reduction in staffing, & publicly held workshops to get more input from residents. County Commissioner Ed Hunzeker comments, "we will be reducing the size of government, which means we'll reduce the services provided". They will need to be extremely efficient at operating on this tighter budget. To keep services & amenity-packed communities strong and thriving with bells and whistles, the county suggested another property tax hike to keep revenues high. This is not the best solution in a slowing economy. We have the federal government trying to put money back in residents' pockets, & the local governments on the back end zapping those savings. Not a good option. Interesting to see how the slowing economy is affecting our local governments, much like the hit financial markets are taking. Expect a short-term dip in our local service industries as we try and climb back into a thriving economy.
Justin
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