Volusia tax base shrinks again

Local agencies may have to raise tax rates

By Al Everson
BEACON STAFF WRITER

posted Jun 9, 2009 - 9:14:25am

Double-digit deflation marks Volusia County's tax base for 2009.

Consistent with the general economic downturn, Volusia County's tax roll has contracted for the second year in a row, but even more so than it did in 2008.

Taxable values have fallen by 18 percent, according to figures compiled by the county's Property Appraiser's Office. That's double the rate of decline recorded last year. The 2009 pre-preliminary tax roll totals $30.3 billion, down from the 2008's $36.5 billion.

The value of Volusia County's current overall tax base is roughly equivalent to the 2005 tax base.

The value of the tax base dictates whether local governments will raise tax rates, hold steady or lower the rates. Because a big chunk of local government's revenue comes from ad valorem (according to value) property taxes, rates are usually adjusted year to year, based on how much operating cash local governments need.

In addition to the overall tax-base decline, each of the cities in Volusia County logged a double-digit drop in its taxable values. DeBary had the least shrinkage, at 10.6 percent. By contrast, Flagler Beach had the biggest proportionate loss: 25.7 percent.

Deltona, battered and buffeted by a high number of home foreclosures, saw a fall in its tax base of 23.6 percent.

The pre-preliminary tax roll released June 1 each year offers local elected officials, government staffers and interested citizens the first glance at the tax rates that may be set for the next fiscal year.

Not only did the taxable value of property drop this year. The total just value, or the actual market value of all properties within the county, even the tax-exempt ones, similarly dropped.

Just value reflects the market value of properties — land, buildings and other improvements — that may not be subject to taxation, such as government-owned buildings, churches, hospitals or schools. The just value also includes the estimated worth of property without taking into account tax exemptions, such as homestead exemptions, the Save Our Homes exemption, and exemptions for widows and the blind.

While the just value in 2008 amounted to almost $57.8 billion, the 2009 just value totaled a little more than $46 billion. The decline was 21.1 percent, the Property Appraiser's Office found.

Shrinkage of the tax base means ad valorem tax rates may be increased to generate revenues equal to the property-tax collections of the prior year.

"The overall 'net' ... decline in the taxable tax roll is 18 percent. This means that to spend the same money as last year (to keep budgets the same), the cities and the county will have to raise their millage rates by 18 percent," Property Appraiser Morgan Gilreath wrote in a statement accompanying the release of the pre-preliminary tax figures.

Gilreath said if local governments and other taxing agencies increase their ad valorem tax rates by a percentage equal to or greater than the percentage of the tax-base shrinkage, many homestead owners will experience a tax increase.

"In Deltona, for example, the value decline is almost 24 percent. If the City of Deltona decides to spend the same as last year's budget, they will have to increase the millage by 24 percent. For those resident homeowners (and voters) who have greater than 24 percent in [Save Our Homes] benefit, that will mean a 24 percent increase in property taxes."

If taxes rise this year, Gilreath said, it will because local governments and taxing agencies are planning to spend more.

"Prices have dropped. The stock market has dropped. The world and national economies have dropped. Local government spending has not dropped," Gilreath told The Beacon.

TAX ROLL

VOLUSIA COUNTY

2009 — $30,298,131,011

2008 — $36,494,978,332

Change — down 18.13 percent

DAYTONA BEACH

2009 — $4,376,721,198

2008 — $5,290,109,173

Change — down 18.47 percent

DAYTONA BEACH SHORES

2009 — $1,447,975,633

2008 — $1,858,472,855

Change — down 22.11 percent

DEBARY

2009 — $1,728,635,106

2008 — $1,919,567,558

Change — down 10.58 percent

DELAND

2009 — $1,572,922,541

2008 — $1,871,474,156

Change — down 17.97 percent

DELTONA

2009 — $2,381,586,612

2008 — $3,077,055,613

Change — down 23.59 percent

EDGEWATER

2009 — $825,683,595

2008 — $981,617,652

Change — down 16.91 percent

FLAGLER BEACH

2009 — $7,498,789

2008 — $10,085,686

Change — down 25.65 percent

HOLLY HILL

2009 — $648,111,380

2008 — $821,060,332

Change — down 21.45 percent

LAKE HELEN

2009 — $102,234,839

2008 — $126,477,375

Change — down 19.33 percent

NEW SMYRNA BEACH

2009 — $2,754,336,519

2008 — $3,443,228j,088

Change — down 20.96 percent

OAK HILL

2009 — $98,281,023

2008 — $122,208,078

Change — down 20.83 percent

ORANGE CITY

2009 — $650,561,086

2008 — $715,144,261

Change — down 12.84 percent

ORMOND BEACH

2009 — $2,916,470,532

2008 — $3,399,838,925

Change — down 12.84 percent

PIERSON

2009 — $53,743,085

2008 — $63,044,161

Change — down 15.72 percent

PONCE INLET

2009 — $760,536,156

2008 — $990,657,684

Change — down 23.76 percent

PORT ORANGE

2009 — $2,569,251,135

2008 — $3,010,976,956

Change — down 16.60 percent

SOUTH DAYTONA

2009 — $591,514,065

2008 — $655,030,666

Change — down 15.37 percent

— al@beacononlinenews.com

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