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Understanding Your Property Tax
Volume 11, August 21, 2010
From the desk of Morgan Gilreath:
Dear Taxpayers:
Our local, state and national economies are in uncharted waters. I hope this letter will help address issues relating to
the property taxes you pay in the economic world in which we all live. Three major topics are presented below:

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PART I will discuss the state of our current real estate market and its impact on property taxes and millage rates.
PART II will present the property tax-related Constitutional Amendments on Florida ballots in November.
PART III will explain the enclosed new and completely revised Notice of Proposed Property Taxes (NOPPT) form required
for use in all counties by the Florida Department of Revenue.
PART I: The Real Estate Market “Crash” Continues Its Downward Spiral …How Does
That Relate To Property Taxes?
We are in the most protracted, unusual and negative real estate market in a half-century. Median sales prices are down
more in the first six months of 2010 than in the entire year of 2009 (see chart below). Prices have dropped almost in
half since the peak of the “Bubble” in 2006. Foreclosure rates remain high with indications that we will continue to see
them if more property owners impacted by our still-lagging economy are unable to continue mortgage payments. In
addition to the negative impact on the economy, this is a personal tragedy for every family and business involved. And
the “bad news” is, that an end still doesn’t appear to be in sight for a couple of years without some unforeseen changes
in the economic conditions.
As prices continue to drop, residential properties are becoming more affordable and we are seeing more sales. The
market continues to be fed by a tremendous inventory of bank-owned property in pre-foreclosure (or active foreclosure)
in addition to the number of privately owned properties for sale. This multi-sourced “over-supply” of properties for sale
will have to be reduced before we will see a return to “normal.” I’m told the foreclosure process is currently taking
around twenty-four months. That’s a lot of time. Troubled loans led the way to a troubled economy. The current
system appears overwhelmed. There is great need for the creation of additional judicial or quasi-judicial “Foreclosure
Clearing Houses” to shorten foreclosure timelines and reduce existing and future inventory. An important ingredient to
any “fix” should be to insure the integrity of the process and avoid repeating mistakes that could recreate problems
later. Otherwise a return to normal markets or normal prices will continue to be problematic.
Single Family Sales Prices have dropped 50%,
from a high of $217,000 in 2006 to a low of
$109,200 in June 2010. Prices are now at 2002
levels.
The next page discusses in detail how a Volusia
resident with a homestead exemption will see
their property taxes going up, down, or staying
relatively level based on upcoming budget
decisions made by their Taxing Authorities.
I cannot emphasize enough to all citizens and
taxpayers the importance of being involved in
the actions of your local governments. Going to
budget hearings can be an interesting, tedious
and often boring activity that also is, in my
opinion, a sure way to keep your elected leaders
in tune with your own corporate desires,
regarding how they spend “your money.”
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Please keep in mind …By law, our 2010 Tax Roll values, reflected on the NOPPT you’re receiving with this
newsletter, are as of January 1st, 2010. Market Values on Notices of Proposed Property Taxes (NOPPT) are not as low
as the August prices you may be seeing as you read this. The 2010 “down market” will be reflected on the 2011 tax
roll.
“What is all this talk about ‘Raising the Millage Rate?’ Does that mean higher taxes on my property?”
There are two completely different situations impacting the possibility of your taxes increasing. One has to do with
taxing authorities budgeting more money (spending more money, even if on the same things, due to increased costs).
The other has to do with Save Our Homes (SOH) not allowing Assessed Values to go down as Market Values decline.
The SOH situation will be discussed at the bottom of this page. Our current situation looks like this:
 Real Estate “Market Values” declined 15.5% during 2009 (the time period for the 2010 Tax Roll).
 A Taxing Authority (City, County, Hospital District, SJWMD, etc.) desiring to budget the same as last
year will have to raise their millage rate by approximately the same percentage that values went down.
The following example illustrates how the County General Fund Millage Rate looks with the Volusia County
Council initially proposing a budget that is lower (percentage-wise) than the Taxable Values declined.
Volusia County General Fund:
Taxable Value
Budget (Revenue)
Millage Rate
2009 Final
Tax Roll
30,151,455,638
161,861,758
5.36829
2010 Budget at
“Rolled Back” Rate*
26,140,500,047
161,861,758
6.1925
Millage must rise to
provide same revenue
2010
“Proposed-Budget”
26,140,500,047
138,557,721
5.3005
Millage drops with
significant budget cuts
* The “Rolled-Back Rate” calculation includes adjustments for new construction, annexations and CRA
payments by each Taxing Authority.
So… raising or lowering millage rates does not necessarily determine whether you pay more or less. It’s really about
whether the Taxing Authority is budgeting more or less. The “millage rate” comes from the official budgets, not the
other way around. Reducing ad valorem budgets by the same percentage that values declined would keep millage rates
essentially the same and would cut taxes on all properties without a “value-cap.” However, cutting budgets involves
either creating efficiencies, cutting out “fat,” or reducing services. These are the challenges of the upcoming budget
hearings. These budget hearings are the only place where you, the taxpayer, can stay informed and have input into this
important process.
“I have a Florida Homestead Exemption and the Save Our Homes (SOH) Value-Cap, so why are my taxes
going up when the value of my property went down and the County just lowered their budget and their
millage rate? That just doesn’t make sense!”
Homesteaded property owners face this situation because Save Our Homes (SOH) puts another “spin” on the process by
requiring homesteaded property Assessed Values to go up, even when Market Values are falling. Homesteaded
properties with a “SOH benefit” remaining will see their taxes go up by approximately 14% plus the SOH 2.7%, unless
serious budget reductions bring the millage rates close to last year’s final rate. This may not appear to make sense but it
is happening because Save Our Homes wasn’t written with a provision allowing for lowering Assessed Values when the
real estate market declines. The following example (top of next page) illustrates how a homesteaded property with a
value decline of 11% has an increase in taxes while a non-homesteaded property with a smaller value reduction of 9%
has taxes going down by 9%. This circumstance exists in every county in Florida.
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Unincorporated Volusia County
Sample Homestead Property
Values
2009
Just Value
163,557
Assessed Value 128,403
Exemptions:
50,000
Taxable:
78,403
vs.
2010
%Chg
145,960 -11%
131,870 +2.7%
50,000
81,870 +4.4%
Unincorporated Volusia County
Sample Non-Homestead Property
Values
2009
Just Value
120,104
Assessed Value 120,104
Exemptions:
0
Taxable:
120,104
2010
109,190
109,190
0
109,190
%Chg
-9%
-9%
-9%
PART II: Property Tax Constitutional Amendments for November Ballot
Amendment 2: An additional homestead property tax exemption for members of the United States military or military
reserves who receive a homestead exemption and were deployed in the previous year on active duty outside the
continental United States, Alaska, or Hawaii in support of military operations designated by the Legislature. The
exempt amount will be based upon the number of days in the previous calendar year that the person was deployed on
active duty outside the continental United States, Alaska, or Hawaii in support of military operations designated by the
Legislature. {I like this one}…
Amendment 3: Reduces the maximum annual increase in the Assessed Values of non-homestead properties from the
existing 10% Cap to a 5% Cap AND …[this was added by the 2010 Legislature]… it requires the Legislature to provide an
additional homestead exemption for persons who have not owned a principal residence during the preceeding 8 years.
Under the exemption, 25 percent of the Just Value of a first-time homestead, up to $100,000, will be exempt from
property taxes. The amount of the additional exemption will decrease in each succeeding year for 5 years by the greater
of 20 percent of the initial additional exemption or the difference between the Just Value and the Assessed Value of the
property. The additional exemption will not be available in the 6th and subsequent years. {Constitutional Amendments
once passed, are permanent. I like them simple and easy to understand, both in definition and long term impact. This
one began simple, but the 2010 Legislature made it a “multi-pronged-exemption” amendment …too much for me.}
[NOTE: AS OF PRINTING DATE, A LOWER COURT HAS RULED THAT THE WORDING USED IN THIS
AMENDMENT CANNOT BE ON THE NOVEMBER BALLOT. THIS RULING MAY BE APPEALED – STAY TUNED.]
PART III: The Notice Of Proposed Property Taxes (NOPPT) Form Has Changed
The Florida Department of Revenue (DOR) has completely changed the Notice of Proposed Property Taxes (NOPPT).
The new NOPPT form contains some new and useful information. Please have your NOPPT form with you as you go
through this section (so you can view your own values and taxes) and fully understand the new format. This section
“walks you through” your new form and property tax information the same way I would go through my own.
Hopefully, after you’ve reviewed it, you’ll enjoy having more information available to you. We have also added a new
PowerPoint presentation on our website (www.volusia.org/property) entitled “New NOPPT Form & Other Property Tax
Issues.”
NOPPT - Page 1 Shows Taxable Value, Millage Rates & Taxes:
Previous
Rolled
Back
Proposed
The “Columns” are specified in the Florida Laws, showing Values, Millage Rates, and Taxes to help you in going
through this new form for the first time.
Column 1: Shows the Taxable Value, Millage Rate and Tax Amount from Last Year for each Taxing Authority (a.k.a.
Previous Rate)
Column 2: Shows the Taxable Value, Millage Rate and Tax Amount for this year if NO budget change is made for each
Taxing Authority (a.k.a. Rolled Back Rate)
Column 3: Shows the Millage Rate and Tax Amount for this year if the proposed budget change is made for each
Taxing Authority (a.k.a. Proposed Rate)
The far right side of the NOPPT has not changed. The Public Hearings for the Proposed Taxes and Budget are listed
for each Taxing Authority. They include the Date, Time, Meeting Place and Phone Number for the Authority.
NOPPT - Page 1 Addition of Non Ad Valorem Assessments:
This is the first year “Non Ad Valorem Assessments” have been on this notice. Stormwater and Garbage charges, for
example, have always been on your final tax bills and that has caused confusion. In an effort to bring more efficiency
to the process, putting Non Ad Valorem Assessments on the NOPPT will prevent taxing authorities from having to mail
another notification, thereby creating postal savings for all of us. The decision to list particular Non Ad Valorem
Assessments on the NOPPT was made by each Taxing Authority. The Property Appraiser does not determine the
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amount of this assessment, the manner of calculation nor whether there should be a charge in the first place. We are
including it on your NOPPT for efficiency in mailing cost and because it will also be included on your final tax bill.
There is an important line at the bottom of the Non Ad Valorem Assessment section showing Total Taxes &
Other Charges: “Non Ad Valorem Assessments” are totaled. Then a grand total of both Ad Valorem and
Non Ad Valorem is shown. This, along with any changes resulting from upcoming budget meetings, is the
total amount that will be on your final tax bill, mailed by the Finance Department on November 1, 2010.
NOPPT - Page 2 “Explanations”:
The new form adds the basic formula for calculating your Tax Amount. It is shown below:
NOPPT - Page 2 Property Valuation:
Market (Just) Value is shown at the top of Page 2 in the middle of the form.
Then, below the Market (Just) Value is a table that lists the Assessed
Value, Exemption Value and Taxable Value by type of Taxing
Authority.
When there is a difference between the Market Value and the Assessed Value it is an “Assessment Reduction”. When
the difference is between the Assessed Value and the Taxable Value it is called an “Exemption”.
NOPPT - Page 2 Petition Deadline:
(See date on your NOPPT)
The petition deadline is always 25 days after the mailing date of the Original NOPPT or Amended NOPPT. Also
included on the form this year is the website for the Value Adjustment Board (VAB). Taxpayers can log-on to the VAB
website to file or print their own petitions.
As in the past, we show our phone numbers for each office.
If you need assistance with your NOPPT form, please do not hesitate to call one of our offices, or log-on to
www.volusia.org/property, and click on the PowerPoint presentation for the NOPPT.
Sincerely,
Morgan B. Gilreath, Jr.
Volusia County Property Appraiser