Property Tax Bills

property taxes are supposed to be based on the value of the asset being assessed. With the huge uptick in prices over the last few years, no one should be shocked with the dramatic increase in their tax bill. I don't like it, but I certainly wasn't shocked. The good news is--the assessed values in my neighborhood are still about 60% of the recent sales prices. So, it could be worse.

When I read Kim Smith's post, I was skeptical. So I read what I received in the mail from Walton County and found that she's right.

First of all, what we received in the mail isn't a property tax bill. At the top right it states, "Notice of proposed property taxes. Do not pay. This is not a bill."

Then at the bottom it states, "Your final tax bill may contain non-ad valorem assessments which may not be reflected on this notice such as assessments for roads, drainage, garbage, fire, lighting, water, sewer, or other governmental services and facilities which may be levied by your county, city, or any special district."

I don't have the heart to call them and get the bad news. I want to enjoy for a little longer the fact that we finally got our tax returns mailed on Monday and will get a refund! Like Scarlett, "I can't think about that right now. If I do, I'll go crazy. I'll think about that tomorrow."

At the property appraisers office, they will tell you to calculate your property taxes by taking today's sales price, multiple it by .85, then, divide by 1,000, then multiply by the millage, (I think about 11.7). That is to give you an approximation of what to expect in the way of prop taxes.
So, Skier is correct. Most people's assessed values are still under actual market prices in their area. I have no idea why the calculate only the assessed value based on 85% of the selling prices, but that is what I have been told time after time inside the Prop. Appraiser's Office in Walton County. Believe me, we are still getting a break based on actual market values.

This is exactly how we ended up with Proposition 13 in California, where one's tax increase is limited to a certain percentage (low) annually. This is precipitated when the local coffers get dizzy with greed. In the long term, Prop 13 severely limits government's ability to provide vital services and every new or expanded service requires bonding (approved by voters). In the short term, it kept a lot of people in their homes when they could not have afforded them otherwise. Prop 13 reflected the outrage of CA residents when this very thing was happening in the huge growth years of the 1970s. We pay significantly higher taxes in Walton County on a property that is assessed at one-third what our CA home is, and we require virtually no services as non-residents. Add to this disparity in taxation the fact that we are also coming up with a considerable amount of bed tax based on the rental of our property every year. What is wrong with this picture? Where is this railroad taking us? Time to take notice.

:nono1:

... and we require virtually no services as non-residents....

When everyone comes to the beach at the same time ie peak season, the infrastucture has to be in place to handle the capacity. I know you are thinking on a larger picture of the total actual services used by you or your renters, but we desperately need sewer and roads, some places even water. Other programs are also needed. However, I know that the increase in taxes generated from the higher assessed valuations leaves much question as to how and where and why the extra money is needed. Even with increasing resources and services, I would think there would still be a large excess of tax money generated unless the millage is substantially lowered, which it is not. Maybe we are building that infrastructure in Freeport and Defuniak Springs, or 4 laining 331, Clyde Wells, Bridge? Good question Paula. It deserves some attention.

Remember, Florida has no state income tax. Property taxes are used by the state as well as by the county.

Most people's assessed values are still under actual market prices in their area.

That's the way it has been everywhere we've lived, so that's not surprising to me. You want your tax appraisal low, and your real estate appraisal high, for obvious reasons.

I wouldn't be surprised if there were 4-5 times as many sheriff's officers in Walton County as there were ten years ago. Back then, staffing levels were scarily low, especially during the winter. And new commercial development requires more police service. Bigger, taller condos mean that the fire departments have to buy new trucks that can reach higher stories. A growing population means not only more roads, but also more drainage and wetlands issues. And I wouldn't be surprised if federal and state road funding required some sort of local match. County general funds as well as bed tax monies go to recreation services used by both locals and tourists. And these days, you really do have to think about increasing salaries of county employees to keep up with out of control housing cost increases.

Florida does have its own version of prop 13; it's just that it only applies to state residents' primary homes. Which from a macro standpoint is better because it will allow revenue growth to better keep up with increased demands for services and new duties demanded from state and local governments. California's state budget is catastrophically FUBAR'ed right now because of a combination of Prop 13 restrictions and mandatory funding of certain programs, while Floirda is in very good fiscal shape because they've got a system where revenue growth will be adequate to meet increased state needs.

More than 50% of FL homeowners pay virtually no property tax because of homestead exemption. The mobile home values fall below the threshold. So 50% of the owners are paying 100% of the load, and at least half of those are second home owners who have no homestead exemption protection. So 25% of FL's population is expected to come up with the big nut? Whatever happened to having some of these developers make their development "pay its own way?" And why are they not required to build some affordable housing to help with the workforce housing crisis? Time to get progressive.

Just talking with my brother tonight, who wasn't too concerned about the 58% property tax increase we are going to see in the new tax bills that go out tomorrow, mostly because he has homestead exemption and will see his property tax increased by a maximum of 3%. Who in the world thinks a 58% tax increase in one year is reasonable on any level? I predict mass revolt on this issue, the stuff that class action is made of. Yes, I am angry because this situation is blatantly inequitable to property owners who cannot vote but who are shouldering the majority of the load. I grew up in Walton County and I can say with reasonable certainty that people down there would never consider this kind of tax increase sane if it touched them at all.

Do you have a cite for those budget numbers? I'd be really interested to see a detailed breakdown since I couldn't find anything direct, just cites that about 10% of the state's population lives in trailers, and that the trailers make up 12% of the state's single family housing stock, not the half you seem to suggest. (http://www.sptimes.com/2005/04/17/Homes/It_s_not_your_mother_.shtml) As of 2002, second homes reportedly accounted for 6.3 percent of homes in the state. (http://www.findarticles.com/p/articles/mi_m4021/is_2002_June_1/ai_88679059) Call it maybe 10% these days because of the boomer influx, not 25%.

I agree that 58% is not reasonable. If the assessed value is going up that much, the millage rate should be rolled back more than it is.


In many areas, the developers are having to pay their way to some degree, with an impact fee that tops $10K per new single family home in some counties. Bay County is supposedly in the process of moving to impact fees for new develolment, though I'm not sure what level they were initially set to.

But too little, too late in a lot of ways, especially considering the billions and billions of un and underfunded projects in the queue, especially for roads and education, and impact fees for new construction are hardly going to cover it all. As for affordable housing, the money for it has to come from somewhere, and normally public funding is in that mix.

Does anyone on this board have or know where to access the breakdown on the numbers for the County's Budget?

Do you have a cite for those budget numbers? I'd be really interested to see a detailed breakdown since I couldn't find anything direct, just cites that about 10% of the state's population lives in trailers, and that the trailers make up 12% of the state's single family housing stock, not the half you seem to suggest. (http://www.sptimes.com/2005/04/17/Homes/It_s_not_your_mother_.shtml) As of 2002, second homes reportedly accounted for 6.3 percent of homes in the state. (http://www.findarticles.com/p/articles/mi_m4021/is_2002_June_1/ai_88679059) Call it maybe 10% these days because of the boomer influx, not 25%.

I agree that 58% is not reasonable. If the assessed value is going up that much, the millage rate should be rolled back more than it is.


In many areas, the developers are having to pay their way to some degree, with an impact fee that tops $10K per new single family home in some counties. Bay County is supposedly in the process of moving to impact fees for new develolment, though I'm not sure what level they were initially set to.

But too little, too late in a lot of ways, especially considering the billions and billions of un and underfunded projects in the queue, especially for roads and education, and impact fees for new construction are hardly going to cover it all. As for affordable housing, the money for it has to come from somewhere, and normally public funding is in that mix.

I think you will be surprised at the increase of 2nd homes sales from 2002. I think 58% is not acceptable. The developers may be paying extra but, bottom line, it is the homeowners that are footing the bill. Do you think a builder is not going to incorporate those excees amounts into the price of his home and who is there paying that amount. The same people who are paying the 58% tax increase.

SJ - The county budget is public record. You should be able to get a copy from the commissioners office. Does anyone know what percentage of the tax money is paid to the state? An increase of 58% is going to create a hardship on many older fixed income people and locals that are only being paid low wages. That much increase in one year should have been spread over a three year period to make it easier on these people.

Impact fees for developers is a good idea, but they will only going to past the cost to the buyers.

There is no way the state will allow the county to not assess these properties significantly higher, and state law prevents the county from shielding non-homesteaded owners from such increases.

On one hand, people should have understood the law before they purchased. On another hand, realtors have not until recently been required to disclose the tax laws with buyers and the vast majority of realtors certainly did not do it on their own. Buyers had to ask the right questions, or hopefully retain a smart lawyer to help guide them.

We expected almost this exact increase, because we purchased last year and are familiar with Florida law. In fact, our new assessment is less than 80 percent of our purchase price from 2004, and nowhere close to what it could legitimately sell for now. But I can see why people who have owned for three-plus years and are not homesteaded are probably shocked.

I agree that the county is seeing a huge windfall and it's a good idea to pay attention to how that money is being spent. I also agree that the millage rate should be scaled back for at least a couple of years to cushion the blow. (Though here in Tampa it's close to 28 percent; ouch.) Depends I guess on how many of these tax dollars are earmarked for beach restoration efforts. That money has to come from somewhere.

I certainly hope they are hiring more building inspectors.

SJ - The county budget is public record. You should be able to get a copy from the commissioners office. Does anyone know what percentage of the tax money is paid to the state? An increase of 58% is going to create a hardship on many older fixed income people and locals that are only being paid low wages. That much increase in one year should have been spread over a three year period to make it easier on these people.

Impact fees for developers is a good idea, but they will only going to past the cost to the buyers.

Thanks Hutch,
This increase has been held off until this year. The assessed values have been extremely low for the last two years during the extreme increase is sales prices. Mostly, I think this can be attributed to the Office being understaffed and lacking the technology to simplify assessments.

You bring up a good point about some long time, long-distant land owners, who don't have large incomes. These people may be cashing out soon, because they cannot pay the taxes. In PCB, we have be saying for the past three years that taxes will make people sell those old beach homes and mobile homes. Who would ever think that SoWal owners would be getting out first. With the huge run up in real estate sales in this area, we (SoWal) just may beat them (PCB) to the punch.

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I agree that the county is seeing a huge windfall and it's a good idea to pay attention to how that money is being spent. I also agree that the millage rate should be scaled back for at least a couple of years to cushion the blow. (Though here in Tampa it's close to 28 percent; ouch.) Depends I guess on how many of these tax dollars are earmarked for beach restoration efforts. That money has to come from somewhere.

28% ? Are you missing a decimal? Do you really mean .28% , ie- 28 mills or .028?

I think if/when SoWal becomes incorporated, we too will see city taxes probably doubling the current 11.7... mills which we currently see. Freeport has higher taxes than SoWal because there are City taxes too.

I am fairly certain that beach renourishment money comes from the TDC which generates revenue at least in some form through Bed Tax. The County may supplement it too.

28% ? Are you missing a decimal? Do you really mean .28% , ie- 28 mills or .028?

Oh, yes I meant the millage rate is close to 28! Not only did I not read through my post closely enough, I posted it twice. Sorry.

Just curious, how might they incorporate all of SoWal, and why would they ever need to do it?

We contacted the Tax Assessor's office while in escrow on our Grayton house, so we knew what the (new) taxes would be. We also knew the State and County particulars relative to taxation, since I am a native of that area. We obviously are aware of the increase in value of the properties in the South County. But no reasonable person would expect a County to reassess and levy a 58% increase in taxes in one tax year. It is a naive and even foolhardy thing to do, even if one can do it without fear of retribution. Walton County is certainly not the first place this has happened, and I can assure you that most places segue into these increases over a period of a few years. At the very least, they do not levy that kind of increase without more advance notification than this. Unfortunately, the mistake was compounded by current tax notifications being mailed out with the old assessment, which will alarm people receiving the corrected ones even more. It's my undertsanding that the revised tax bills are being mailed out today. We will appeal ours.

It shouldn't come as a surprise that this will hurt local residents with second homes there more than many others, whose properties are probably investment properties in the first place. Local people with a second home at the beach will not have homestead exemption and one cannot legally rent a home that has the exemption. We know a lot of people in DeFuniak who are renting homes that have been in their families for generations, just in order to pay their taxes as it is. Local people suffer first and hardest, because the backlash action doesn't occur soon enough to be a remedy for them. The real estate and tourism sectors also suffer immediately and those take longer to recover, even after a possible remedy action.

It isn't so much the extra $$$ from my perspective as it is the audacity of such a large increase in one year. I have never been a person who resents paying my taxes, so this is an unusual rant for me. But I also recognize a gouge when I see one and we know from our long residency in CA the kind of backlash this kind of thing invites. We also know that the short-term solution to an outrageous tax hike translates into a sad state of affairs for local and state government in the 5 to 10-year long-term scenario.

I agree that County employees probably should have their wages increased. I also recognize the need for beach restoration and infrastructure necessitated by all the building and tourism. But Walton County has gone from being a poor agricultural County to being an extremely wealthy one in a very short period of time. You will be very surprised when you take a look at the County budget. A 58% tax hike is not needed to accommodate things like these. Look at the disparity between South Walton property taxes and those in other parts of the County, and look at the bed tax and sales tax figures alone.

A note on impact fees for builders. Of course, the fees get passed along into the sale prices of new homes. They are developers, not philanthropists. But impact fees are little more than a piggy bank, not solutions. When we talk about new development "paying its own way," we mean developers building roads or paying a traffic volume-generated equivalent fee for new highway construction. We mean developers putting in parks and creek/stream/beach protection and restoration projects. We mean development financing the cost of new bicycle trails and pedestrian paths. Otherwise, the costs for these things are shouldered by existing homeowners. Don't kid yourself. Development that does not assume some of the responsibility for local problems and amenities is just hit-and-run obscene profit for the developer.

Workforce or affordable housing is never done by impact fee, because it is never enough to actually build this housing. There has to be an inclusionary requirement for all new development, where new developments/subdivisions are required to include say, 15% of their units built as "affordable" units. This means "for sale" units that are available only to qualifying low-to-moderate income segment of that particular County. In areas such as South Walton and the Napa Valley, where we live, the only reasonable way to provide long-term workforce or affordable housing for service workers is by providing rental apartments or even dormitory housing for seasonal workers (like they do in Vail, CO). Dorms are provided by the major employers.

Just some thoughts as to why the County does not need to slam a 58% tax increase onto property owners without homestead exemption, just because they think they can do it with retribution. The retribution may not be in the form of election results, but more far reaching for the entire County. Walton County is sending an alarming message to their real estate and tourism sectors. That's the goose, guys. (And sorry for such a long rant. I just hate to see a dynamic unfolding there when I know firsthand its implications for the long-term economic viability of the area.)

Pigs get fat...hogs get slaughtered.

...
Just some thoughts as to why the County does not need to slam a 58% tax increase onto property owners without homestead exemption, just because they think they can do it with retribution.

My two cents on the issue is that theoritcially, assessed values should equate to market values. However, I strongly feel that the millage should be greatly adjusted in order to cut out the pork. Otherwise, how will we ever be on the right page for assessed values. Unfortunately, I know how the gov't thinks, and the potential results of doing so.

If Assessed values reflect current market values and the millage drops let's say to 6 mills, in a short time, the gov't will begin comparing our millage rates to other counties' and say, we should be at least at 12 mills -- look at what other people are getting taxed. Our owners have it too easy. Too much soda consumed from those alluminum cans in the court house equates to short term memory loss.

As a resident, I feel some some shortfalls in certain fundings, but even with fully funding some of these programs, we should still not need to increase taxes on average by 58%.

I have my professor/dean hat on with this question--will the additional tax revenue help the local schools? (I haven't heard anyone mention this infrastructure issue; granted, many on this list own 2nd homes so schools aren't an issue) Seems to me that the additional revenue could be plowed back into k-12 in ways that could grow the county's overall economic infrastructure for the future.
(just for reference--NY state property taxes are among the highest in the country, and tho primary residences get a little relief, mine are still unbelievable--I lived in Birmingham, then moved to St Louis--my taxes tripled. From St. Louis to upstate NY--my property taxes quadrupled again. And my house is not worth anywhere near the prices on SoWal. But our local schools are excellent).
It strikes me that the windfall from property taxes needs to be treated as a strategic resource for the future

I was under the impression that you are taxed under long-term capital gains which are currently capped at 15%. Am I mistaken about that?

Yes, but be sure to ask your CPA about Alternative Minimum Tax. Odds are this will add to your tax bill.....

More than 50% of FL homeowners pay virtually no property tax because of homestead exemption. The mobile home values fall below the threshold. So 50% of the owners are paying 100% of the load, and at least half of those are second home owners who have no homestead exemption protection. So 25% of FL's population is expected to come up with the big nut? Whatever happened to having some of these developers make their development "pay its own way?" And why are they not required to build some affordable housing to help with the workforce housing crisis? Time to get progressive.

Just talking with my brother tonight, who wasn't too concerned about the 58% property tax increase we are going to see in the new tax bills that go out tomorrow, mostly because he has homestead exemption and will see his property tax increased by a maximum of 3%. Who in the world thinks a 58% tax increase in one year is reasonable on any level? I predict mass revolt on this issue, the stuff that class action is made of. Yes, I am angry because this situation is blatantly inequitable to property owners who cannot vote but who are shouldering the majority of the load. I grew up in Walton County and I can say with reasonable certainty that people down there would never consider this kind of tax increase sane if it touched them at all.

This cost shifting benefits retirees the most in my opinion. Florida residents voted on this amendment,and as we all know, the blue hairs do three things very well, the mall, early bird dinners, and voting. I think anyone who has been upwardly mobile in this state has thought twice about this once you sell your primary residence, move two streets over, and then have your tax bill double or triple. You are shouldering an unfair burden the same way I do to pay into the Florida Hurricane Recoupment Fund through my homeowners bill. This year we paid an additional 7 percent to make up the losses for those who cannot buy insurance through traditional means. To those oceanfront owners reading tonight, I say "You're Welcome!"

I have my professor/dean hat on with this question--will the additional tax revenue help the local schools? (I haven't heard anyone mention this infrastructure issue; granted, many on this list own 2nd homes so schools aren't an issue) Seems to me that the additional revenue could be plowed back into k-12 in ways that could grow the county's overall economic infrastructure for the future.
(just for reference--NY state property taxes are among the highest in the country, and tho primary residences get a little relief, mine are still unbelievable--I lived in Birmingham, then moved to St Louis--my taxes tripled. From St. Louis to upstate NY--my property taxes quadrupled again. And my house is not worth anywhere near the prices on SoWal. But our local schools are excellent).
It strikes me that the windfall from property taxes needs to be treated as a strategic resource for the future

I hear the schools are pretty good here, but simple things like paving a mile of road, or installing a traffic light, seem to be harder than a trip to the moon. Makes you ponder, and fear, where all the new revenue wil go.

I have my professor/dean hat on with this question--will the additional tax revenue help the local schools? (I haven't heard anyone mention this infrastructure issue; granted, many on this list own 2nd homes so schools aren't an issue) Seems to me that the additional revenue could be plowed back into k-12 in ways that could grow the county's overall economic infrastructure for the future.
(just for reference--NY state property taxes are among the highest in the country, and tho primary residences get a little relief, mine are still unbelievable--I lived in Birmingham, then moved to St Louis--my taxes tripled. From St. Louis to upstate NY--my property taxes quadrupled again. And my house is not worth anywhere near the prices on SoWal. But our local schools are excellent).
It strikes me that the windfall from property taxes needs to be treated as a strategic resource for the future

The increase will not affect the schools. Local property taxes do not go to local schools, but instead go to the state's general fund where they are distributed back to the school districts per pupil. This keeps it fair as far as rich counties and poor counties go. The Walton County schools do get a small portion of the "bed tax" which is raised locally and stays local. The schools here are mediocre, but getting better. Good facilities (if they can keep up with the growth), but we need better administrators (3 news ones this year in Sowal--let's hope they are keepers).

Just opened my"revised" tax bill. I kid you not...478 percent increase. I see the tunnel of light...it feels so good. Let me just go there now. I swear I can make out the faint outline of some lipstick on the Walton County envelope!