TBO.com - TBO is Tampa Bay Online

Cities Get Message On Property Tax

ADVERTISEMENT

By CHRISTIAN M. WADE AND NICOLA M. WHITE, The Tampa Tribune

Published: January 31, 2008

NEW PORT RICHEY - Amendment 1, which was approved by a majority of voters in Tuesday's presidential primary, could reduce property taxes across the state by as much as $9.3 billion over the next five years by shrinking the tax base of local governments.

That's good news for most homeowners.

But there's nothing in the constitutional amendment that prevents local governments from raising their property tax rates to make up for the expected revenue losses.

Florida's municipalities could, if they choose, increase local tax rates to compensate for losses in taxable value, unless their current tax rates are hitting the constitutional limit of 10 mills. None of Pasco County's six municipalities comes even close to that ceiling.

So the big question is, will they?

"It's not going to happen," said Rick Snyder, New Port Richey's finance director.

"We could do it, but it kind of defeats the purpose," he said. "If we decide do battle with the state Legislature by increasing taxes, we would have a citizen revolt on our hands."

In the last round of state-mandated reforms, Pasco's most populous city was forced to reduce the amount of taxes it collects by 9 percent, forfeiting an estimated $225,000.

This year, the city expects to lose about $400,000 from the amendment, not including the amount it could lose down the road from changes in the homestead exemption.

Despite that, there are no plans to increase the city's rate of $6.78 per $1,000 of taxable value, which was reduced in the last budget cycle from a highpoint of $7 per $1,000.

Much is the same for Pasco's other municipalities, whose officials are unwilling to risk a backlash from their citizens by increasing local taxes to compensate for a loss of tax dollars; even though the tax reforms may force them to reduce municipal services and cut programs.

In Port Richey, where officials expect to surrender several hundred thousand dollars in revenue over the next several years under the reforms, there's no talk of raising rates.

In fact, they might even further reduce the $3.90 per $1,000 tax rate next fiscal year.

"Our citizens are demanding that we lower taxes, and I think we need to take heed of that message," Mayor Richard Rober said. "This city council is not looking to increase taxes."

Neither Dade City nor Zephyrhills plans to raise taxes, even though they'll need the money.

Instead, officials in both cities said they will tighten the belts on spending.

For Zephyrhills, that will mean scrapping plans to buy property for a new city hall, a building for a new performing arts center and a park in the city's growing north end.

"It would be rather counterproductive to raise rates after we've gotten a pretty clear message to cut things," City Manager Steve Spina said.

Still, the reluctance to increase taxes doesn't mean that Pasco's cities won't seek to plug the drain on their general funds. Translation: the money has to come from somewhere.

For example, New Port Richey's $43.5 million budget for this current fiscal year includes hefty increases in fees for municipal services provided by several city departments.

The increases ran the gamut from building permits and rezoning applications, to fire inspections, garage sale permits, title searches and late charges for library books.

Although politically unpopular, they provide a ready source of income when statewide tax reforms are forcing most municipal leaders to tighten their fiscal belts.

Other Pasco cities, including Zephyrhills, are expected to follow suit. Some argue that increasing fees is not a viable solution to tax revenue shortfalls.

"It's another form of taxation," Rober said, "and our citizens deserve better than that."

Reporter Christian M. Wade can be reached at (727) 815-1082 or cwade@tampatrib.com. Reporter Nicola M. White can be reached at (813) 779-4613 or nwhite1@tampatrib.com.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT