Market Values Dropped, but did Taxes Drop, Also?

Here it is already, property tax time again. Property tax bills have been arriving in the mail this week in Brevard County FL. And, since property values have dropped or leveled off, then theoretically our tax bills should be lower, right?

Well, that may not be the case for everyone.

Many owners anticipated a drop in taxes, because the market values on their homes dropped.

Owners of homesteaded properties are protected by Florida Save Our Homes. The assessed value of a homesteaded property cannot increase by more than 3% per year. So, when our Brevard County Real Estate prices were increasing from 2001 to 2006, owners were protected. Their assessed values did not skyrocket, although their market values did.

Prices or market values have been declining over the last several years. In some areas we have seen some stability in prices recently. But, some owners of homesteaded properties are seeing their taxable values increasing, thus causing an increase in taxes. For some Brevard County Homeowners, it’s because the 3% cap never allowed taxable values to catch up to market values. Brevard County property appraisers can continue to increase the assessed value of a property as long as it stays below market value.

If you look closely at your tax bill and compare it to prior year bills, the total millage rate in Melbourne for 2011 is 22.0301. In 2010, the millage rate was 19.9629. In 2009, it had been 18.4861. So, your market value may be decreasing, but the millage value rate is on the increase.

Even though the market value of a property is declining, the taxable value under Florida Save Our Homes can increase. And, increased millage rates can push that number higher.

For some, they have seen their market values drop below their assessed values. For those who have seen a decrease in their tax bills, some feel they aren’t seeing as large a decrease as they should, due to the increased millage rates. It seems to be a double edged sword for many.

So when your tax bill arrives in the mail and you see that market values have dropped, will your property taxes have dropped, too?

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Melbourne FL Real Estate, Sandy Shores, Realtor

Sandy Shores Melbourne FL Realtor

Sandy Shores, Melbourne FL REALTOR®

Specializing in Residential, Investment and Relocation Real Estate

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