Mexico Beach Residents Ask for help

WJHG - Panama City Florida ^ | Aug 25, 2006 | Sabrina Zimring

[Vob]

More than 80 Mexico Beach homeowners met with Rick Barnett Friday morning. They all had one thing in common.Their assessed home values have skyrocketed and their property tax is through the roof, and the tone seemed to be the same throughout the room.One woman said her mobile home and small piece of property she purchased for $25,000 several years ago was appraised this year for $200,000.Another man says his home went up in assessed value by 400 percent. His property taxes jumped from $2,000 last year to $10,000 this year.The owner of Mexico Beachs Driftwood Inn says the increased property values are making her reconsider her investment.Peggy Wood, owner, said, One of the buildings went from 600,000 to 2 million, 700,000. If I were a business owner I wouldn't come into this area, and as a business I'm considering whether I should stay."

[sarasmom]

That would make sence, and seems fair, hense it will not happen.

I rent, always have.
Won't "buy" untill I have six months PITI in savings, and I have never found myself in that position.
My rent payment increases are directly tied to property tax increases.
No, I don't cut a separate "tax" check to the "revenuers" for property taxes, but I pay them.
Haven't found a landlord yet, willing to lose money by renting property to me without eventually raising the rent when the property tax is increased...(I typically rent long term, and have never not received my deposit back when I moved)
I have no debts, and don't intend to accumulate any.
Sigh...
It seems people will never learn to live within their means.
I know lots of people who lost everything in the dotcom bust.
They just regrouped and transferred their "get rich quick with no work schemes" into property investments.

[CindyDawg]

I see it differently. They would have to bring taxes in line or people wouldn't buy new houses. The best thing would be to get rid of property taxes period and have an "everybody pays" sales tax but I guess that isn't going to happen.

[Vob]

That is what has me wondering. The biggest developer in the area is http://www.joe.com/web/

The county will see far more revenue from multi-floor condos than single family dwellings. If you "tax as you stack" your revenue stream gets much bigger. Those that did not already sell to developers have become an obstacle to those that want to collect more taxes.

[CindyDawg]

Been there. I got my "home" about 13 years ago. It's nice but guess what? I'm really still renting and my landlord raises the rent and adds more restrictions every year.

[ZOOKER]

Local governments love increasing property values, it's a way to increase taxes without the bother of letting people vote on it.

personally, I think that the gov't should be obligated to BUY property for the exact amount they appraise it at, at the owner's discretion.

That should keep 'em honest...

[Texan]

I can certainly relate to this.

The appraisal and taxes on our business property went up 400% this year. (small town near San Antonio, TX). As a consequence, we're selling out.

It's the school taxes which are breaking all the property owner's backs. Nothing fair or equitable about it.

[Vob]

Yes it would, but what if they do not want to sell. Should the local government be able to take the property?

[CindyDawg]

That doesn't work. I threw a fit, when my appraisal jumped 10,000 dollars. I had just had it privately appraised by one of their employees. I told them it was the best offer and to write me a check.

[Vob]

Your point on education taxes is good. This small community does not even have a school. The children attend school for the most part in an adjacent county. Educators can't seem to have enough money with which to do such a poor job.

[ZOOKER]

I said "at the owner's discretion" --- if you don't want to sell, pay the tax, I suppose.

After some thought, I can see possibilities for abuse. Properties bought would have to be resold, unless you approve of local governments buying private property with public money. Now if unscrupulous folks get the city to raise taxes, buy up property, then sell it at a loss to them, that's an expensive form of eminent domain...

[bjcintennessee]

Should the local government be able to take the property?

This is simply a variation of eminent domain. The results will be the same, except that the county can gain the property due to unpaid property taxes -- less expensive for the county that way.

[sarasmom]

LOL!
I understand.

But I am also serious, as you seem to be, that ever increasing property taxes on homeowners, based on the speculative valuation of their homes, IF THEY SOLD THEM, does not equate to actual property tax liability.

Taxes are due at the point of sale, not before, and not after.
What a person bought 5,10 or 60 years ago should be taxed fairly, based on the actual purchase price, not the fictitious retail value.


And why do the "revenuers" think they have a right to tax income and property?

[mugs99]

Another man says his home went up in assessed value by 400 percent. His property taxes jumped from $2,000 last year to $10,000 this year

"The power to tax is the power to destroy." -- Justice John Marshall Marshall

[Howard Jarvis Admirer]

You are right - in California, Proposition 13 locks in the value of your property at the price you paid for it, plus a yearly inflation adjustment maxing out at 2%. The tax rate is 1% of the purchase value of your property. Tax and Spend politicians hate Prop 13, most homeowners learn to love it after they realize they are shielded from skyrocketing tax assessments and increases. For more info, check out www.hjta.org.

BTW, I thought Florida already had a cap on property tax increases - this is news to me.

[raybbr]

ping

[lula]

In '99 we too owned in San Antonio just outside the city limits, the city incorporated the area and our taxes went up to the tune of $300 per month so we sold.

We recently looked at property in Florida and found the taxes way too high. With the increase trend it is a gamble, especially if you are on a fixed income. We know people who are in the same boat and now must sell because of taxes, and insurance costs are another problem.

We are now buying in a small town in South Carolina where taxes seem appropriate and growth is slower.

[Man50D]

Fortunately there is a long term solution for Mexico Beach homeowners already before Congress. It is called The Fair Tax Act . The House version is H.R.25 and the Senate version is S.25. Click on the following links for more information how The Fair Tax can help with property taxes by replacing all federal income taxes with a consumption tax:

Americans For Fair Taxation
Fair Tax Frequently Asked Questions

[Hydroshock]

I could not agree more

[Caipirabob]

Many people will have to sell before that happens.

No easy way out here. The increase in taxes and skyrocketing insurance rates eliminates much of the previous pool of willing buyers. Florida has priced out the average American, including those who live here.

People say "So let them move to a less expensive state" without understanding that the can't sell, can't move and are basically stuck. Just sayin'...

[Jacquerie]

I live in the county adjacent to Mexico Beach and we have the same problem.

BTW, I thought Florida already had a cap on property tax increases - this is news to me.

You are partially correct. Homestead property tax increases are limited annually to the lesser of inflation or 3%. There is no limit on non-homestead property. Also, the first $25,000 of homestead valuation is exempt from tax.

Much real estate here is owned by out of staters for investment or to eventually build on and retire. The local pols think they are only screwing non residents when in fact the high taxes kill business and thus keep population growth to a minimum.

The Voting Rights Act a/k/a Northern Occupation of the South II is a major problem and prevents giving the boot to high tax politicians. In order to ensure a safe black voting district, the feds forced our county into single member vs open districts. Believe it or not, three of the five commissioners actually get elected on the basis of voting for high taxes which fall disproportionately on out of state property owners. One redneck commissioner recently told some tax protesters to "go back to Ohio or Michigan or wherever they came from". This bozo will easily get reelected.