Frequently Asked Questions
relating to your
2009 Notice of Proposed Property Taxes
1. Why did my taxes go up when the assessed value went down?
The proposed overall tax rate (millage) for 2009, which is set by taxing authorities, is higher than the 2008 tax rate. The taxing authorities that set the tax rates include the City of Jacksonville, Duval County School Board, Cities of Jacksonville Beach, Atlantic Beach and Neptune Beach and Town of Baldwin, St. Johns River Water Management District and the Florida Inland Navigation District.
2. Why did my assessed value and the proposed taxes go up if the market value on my property went down?
There are two primary reasons that some property owners may see an increase in proposed taxes even if the market value of the property decreased:
· First, the proposed overall tax rate (millage) for 2009, which is set by taxing authorities, is higher than the 2008 tax rate. Even though the City of Jacksonville's proposed millage rate on the Notice is the rollback rate (rate which would generate the same amount of revenue as last year) and the school district's proposed rate is below the rollback rate, both proposed rates are higher than last year's rate. Budget debate is ongoing and the City of Jacksonville could reduce its rate further before tax bills are mailed.
· The second reason is that if the assessed value of homesteaded property is less than the market value, it will continue to increase. This is called the "Recapture Rule."
So even if the market value on your home decreased, the assessed value – by law – must continue to increase until the market value reaches it. Due to the "Save our Homes" law, homesteaded property cannot increase annually more than the Consumer Price Index (CPI) or 3% - whichever is less. As a result, many long-time property owners have large differentials between their market and assessed values.
Fortunately for taxpayers, the increase in the CPI this year, and likewise the increase in assessed values of homesteaded properties, is just .001. (1/10th of 1%).
3. Why is the school tax higher than last year? I thought they lowered taxes.
While the School Board passed a lower rate than the 8.1407 rollback rate (the rate needed to generate the same amount of revenue as last year); the rate they passed is actually a quarter mil higher than last year (2009's rate is 7.5820. Last year, it was 7.5610).
4. What is the Rollback Rate in Column 3?
The "Rollback Rate" or rate used in column three to calculate "Your Taxes this Year if NO Budget Change is Made" is the rate that would generate the same amount of revenue as last year based on the current certified preliminary gross taxable value of property, excluding new construction.
5. Why are my taxes lower if the PROPOSED budget change is made than if NO budget change is made?
Even though some taxing authorities increased the tax rate (millage) over last year, the overall tax rate is still lower than the Rollback Rate.
This year, the City of Jacksonville's proposed budget rate is the same as the Rollback Rate. However, debate is ongoing and it is possible that the City could reduce the millage further.
6. The value on my Notice of Proposed Property Taxes is very different than my purchase price and the private appraisal price. Why?
The market has dropped significantly in many areas in recent months, so your value can be different from your sale price based on when you purchased your property. Remember the appraisal date is January 1, 2009. If you bought your home in February 2008, for example, your value may have dropped since then. Recently purchased homes may have had a higher value on January 1.
Market values are not based on your individual sale. Rather comparable sales and calculations are used to determine a value for January 1.
7. I bought a house from a bank. Why isn't it considered a qualified, arm's length transaction?
The Florida Department of Revenue does not allow property appraisers to consider transactions to and from financial institutions to establish market values. These sales are not considered qualified sales – meaning they are not considered typical sales transactions that would be used in valuing other comparable properties.
These properties are, however, still valued at market value despite the sales price. Market values are determined based on comparable sales and the market as of January 1.
8. My realtor said that I could not sell my property for what your office has it appraised for.
Your market value is not established by the present market. Rather, historical data is used to determine a market value as of January 1. Realtors typically look at the present market to establish listing pricing. The market has changed since January 1.
9. I thought I had a homestead exemption, but it is not listed on my Notice of Proposed Property Taxes. Why?
If your exemption is not listed, there could be a number of reasons:
· The property owner may have filed for the succeeding year. (You must own and occupy your home as your primary residence on January 1 of the tax roll year in order to qualify for a homestead exemption.)
· The property owner did not file for a homestead exemption.
· The exemption was removed due to a denial, change in ownership or other reason.
If you are unsure, it is best to contact the Customer Service/ Exemptions Division at (904) 630-2020.
10. Why am I receiving a partial homestead exemption?
You could be receiving a partial exemption for a number of reasons:
a. The property is owned by multiple owners;
b. The property has multi-uses; or
c. There are multiple buildings on the property
11. My assessed value increased to market value this year, and my cap savings are gone. Why would this happen?
There are a number of scenarios that would cause a property to lose the "Save Our Homes" cap:
· If a change in ownership occurred in the previous year and the homestead exemption was removed;
· If there are multiple buildings on the property - ownership and living percentages affect the cap (multi-use building); or
· If there were changes or improvements to the property, the cap may come off the affected area
Again, if you are unsure, please contact the Customer Service/ Exemptions Division at (904) 630-2020.