Property Taxes

2011 County Property Tax Summary - PRELIMINARY

For the 3rd year, the Florida Association of Counties has compiled the proposed property tax numbers for counties across the state to reflect the reductions and changes that have occurred the past four years.  Despite ongoing discussions about capping property tax rates from Tallahassee, the data indicates that most local governments held tax rates steady the past fiscal year.

Counties primarily provide public safety, fire, emergency medical services, public record-keeping, jails, parks, libraries, health care, economic development, comprehensive planning, and roads, just to name a few.

Each year unlike the state and federal government, counties are required to establish the property tax rate needed to provide services for their community.  State and federal government work within the confines of a predetermined tax rate.  For instance, if the sales tax rate is 6% then tax revenue is determined by how much is sold and the state budget is determined based off the revenue expected.

County governments have the opportunity to determine the costs of services mandated by law, critical public safety services and important services then set the tax rate that will ensure these demands are met.  However, it is evident in the following report that with the drop in property values – close to 26 percent combined over the last four years – most local governments did not raise property taxes at all and eight exceeded the statutorily mandated roll back rate.

When local governments begin establishing their budgets they are required by the end of August to submit to the state their maximum proposed millage rate.  Once that rate is established most counties then debate their proposed budget and millage rates making many changes along the way.  Following the debate a minimum of two public hearings are held where citizens and community leaders can discuss their concerns and support of budget items. 

Throughout the budget process the millage rate may change many times, however, it can not exceed the rate given to the state in August.  Therefore, many local governments may establish a higher preliminary millage rate to provide more room for debate and discussion and then will reduce that rate upon the final adoption of the budget at the end of September.

This report covers only the preliminary millage rates and a revised report will be completed after the first of the year when final millage rates and property values have been reported and verified.

Three major factors have impacted property taxes in Florida since 2007: the recession and resulting decline in property values, the implementation of the roll back rates (2007) and Amendment 1 (2008).  This year alone counties have reduced revenue by nearly $409 million.¹

(4.6%). In five years, that reduction totals $3 Billion or 25.8%². These reductions have resulted in major workforce cuts as well as cuts to all levels of service.

With property taxes influenced by the decline in property values as well as previous changes to the property tax system, 2011-12 property tax revenues are below 2004-05 revenues (see next chart). If current economic trends continue, counties will remain near or below 2004-2005 revenue levels until after 2013-14³

The next chart reflects actual property tax revenue numbers in comparison to the guidelines established by the Legislature in 2007⁴. This chart clearly outlines that economic conditions and existing property tax changes have realigned property tax revenues with the trend lines established by the Legislature. Based on proposed millage rates counties are more than $1 billion below the statutory trend line for FY 2012.

It can be reasonably argued that the jump in property values from 2006-2007 was an anomaly and the free market has leveled tax rates in such a manner that will likely keep local government revenue below any policies that the legislature has or may enact.

This year 51 counties (76%) will collect less property tax revenue and 16 counties (24%) will collect more property tax revenue than in 2010-11. Of those 51 counties, 2 of them have reduced their tax revenue by greater than 10%, and 49 have reduced their tax revenue up to, but below 10% . Of the 16 counties with increased property tax revenue, 11 counties increased their revenue by less than 5% and 5 by more than 5%. Fiscally constrained counties account for 10 of those 16 counties that voted to increase their property tax revenues.

If you were to look at these numbers in comparison to the statutory rollback rate, you would see that 57 counties are below the rollback rate, 2 counties met the rollback rate and 8 counties exceeded the rollback rate⁵.

Florida’s strength is in her diversity and her counties paint that picture.  While every county has made reductions over the last four years, each has done so in a manner that serves the unique community they represent.

The Florida Association of Counties (FAC) is committed to not only serving our members but providing our legislative partners with accurate and critical information needed to make ongoing tax decisions.  It is clear that counties, just as the state, have been forced by many factors to make dramatic reductions and they have done so accordingly.

Historical Tax Data

2010
2009
2008
2007

[1] Data for all 67 of Florida’s counties is based off of their preliminary property tax data submitted to the Florida Department of Revenue on Form-DR420. The aggregate millage rate will likely decrease once final millage rates and property values are set at the end of 2011.