John Emerson, Hernando County Property Appraiser, presented an update to the Brooksville City Council on June 7, 2016. As part of the agenda packet, Emerson provided a “good faith estimate,” or an approximate taxable value of the properties in the city, which amounted to $385 million, an increase of $10 million over last year, or 2.7%. Taxable value is that amount assessed which determines the amount of tax is paid to the municipality or county. This is different from market value, which is the amount received from the sale of property. According to Emerson, market value in the City of Brooksville saw an increase of approximately 4%.
Emerson stated the increase in taxable value, as well as $6 million in new construction in the past year, added nearly $16 million to property values in the city. He noted that did not include tangible property (tables, chairs, desks, etc.) or new construction, which will be added to the final accounting in July. Though the number seems high, Emerson stated the county figures are approximately $11 billion.
There is also a limit to the amount that can be assessed under Florida Statues after a property is awarded a homestead exemption. Called “Save our Homes” (SOH) the limit changes per year based on Consumer Price Index or three percent of the property’s assessed value. For this year, that amount is 0.7%, which Emerson equated to a loss of nearly $15 million this past year. As property values go up above the three percent cap, the loss will also increase. New construction projects scheduled for the coming year will benefit the City.
Emerson provided the example below. City Manager Jennene Norman-Vacha clarified the shown “city millage” rate as a combined city and county combined millage. The city millage is actually 6.6439. Emerson will send weekly reports to the City Council which will show changes to the City’s taxable value. He stated he did not believe that the numbers would reflect a decrease.
—————–
Based on a 4% increase in Residential Property for 2016:
Value in 2015…………………………. $100,000
2016 4% increase in value…….. $4,000
2016 SOH 0.7% increase……….. $700
Without Homestead
County Mill. 16.1392 x $4000 = $64.56 increase in taxes
City Millage 22.7831 x $4000 = $91.13 increase in taxes
With Homestead
County Mill. 6.1392 x $700 = $11.30 increase in taxes
City Millage 22.7831 x $700 = $15.95 increase in taxes