BALANCE SHEET BLOG – HOLLYWOOD, FL


Property Tax Squeeze 2010
July 25, 2010, 1:58 AM
Filed under: Budget, Taxes

July 25, 2010

Background

Our annual property tax bills include the taxes we must pay not only to the City of Hollywood but also to numerous other entities including the county, public schools, water management district, children’s services council, etc. This article concerns only the portion of our tax bill that is determined by the City.

The Hollywood City Commission is responsible for setting how much tax we pay each year to help fund city operations. The city also assesses each property owner a proportionate share of the annual repayment owed on the voter-approved General Obligation Bond (GOB) for parks and public safety.

City Property Tax Rate

The City Commission took a big step on July 21 by setting 6.7100 as the maximum rate we can be taxed to fund city operations in FY 2011 — the fiscal year that begins October 1, 2010. This is the so-called “not to exceed” millage rate.

Before the commission makes a final decision on the rate, it will hold two public budget hearings in September. The first one is set for Wed., Sept. 15, 5:30 PM, at City Hall. While the Commission could adopt a lower rate, it is not likely to do so because the “not to exceed” rate is insufficient to cover projected expenditures.

City Millage Rates 2010 – Actual Rates 2011 – not final
Operating 6.0456 6.7100 – ceiling
GOB debt 0.2919 0.4268*
Total Tax Rate 6.3375 7.1368
*The debt millage must cover the annual GOB repayment which has not substantially increased. The need for the higher debt millage rate in 2011 is based primarily on Hollywood’s plummeting property values.

Impact on Tax Payer

Whether your 2011 tax bill will be higher than last year’s bill depends on how much the Broward County Property Appraiser has lowered your taxable property value. The greater the loss of your property’s taxable value, the more likely your tax bill for 2011 will not exceed last year’s. The higher millage rate multiplied by the lower property value could hold the line for your taxes.

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