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Hernando Today

Milling about in Hernando County

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By MICHAEL D. BATES

Published: February 22, 2008

BROOKSVILLE - BROOKSVILLE - In 1998, the average national cost of a new

home was $129,300, and people's annual average income

was $38,100.

The price of a new car was $17,200, and it cost $1.15

for a gallon of gas.

Shoppers paid $1.40 for a pound of hamburger, $1.26 for

a loaf of bread and 88 cents for a dozen eggs.

Oh, and a U.S. postage stamp was 33 cents.

Viagra was introduced to treat male impotence and

then-President Bill Clinton was still adamantly denying

he had "sexual relations" with former White House

intern Monica Lewinsky.

Much has changed in 10 years, including the cost of

doing business in Hernando County.

Ten years ago, the countywide general fund millage rate

here was 7.9776. Property values stood at $3.7 billion,

which brought in nearly $30 million -- $29,855,074 to

be exact.

Fast forward to today.

The county's millage rate is now at 5.4394, a 25

percent reduction from 1998.

However, property values have increased more than

threefold, to $11.3 billion. The revenue generated has

more than doubled, to $61,778,147.

Put another way, in 10 years, the county's revenue from

property taxes has increased 107 percent.

Budget Director George Zoettlein said the 2.5382

reduction in the millage rate over the last 10 years

has resulted in a tax savings to citizens of $65.8

million.

Any time the millage is cut, the county views that as

lost revenue, Zoettlein said.

But Linda Hayward, founder of the Hernando County

Taxpayers Alliance, said interpreting millage cuts as

tax savings is misleading because the hike in property

valuations have wiped out any savings homeowners would

have received from those cuts.

"That's why the coffers of local government have grown

so fast and are so big," Hayward said.

By The Numbers

Property taxes are calculated by taking the assessed

value of the property and subtracting any exemptions.

One mill equals $1 for every thousand dollars of

taxable value.

For example, a home assessed at $200,000, minus the

$25,000 Homestead Exemption, would have a taxable value

of $175,000.

But with the recent passage of Amendment 1, the

homeowner would have to subtract another $25,000

Homestead Exemption and now the taxable value of that

home is $150,000.

That amount is then multiplied by the millage rate. At

5.4394 mills, the taxes on that $200,000 home – with

the doubled Homestead Exemption -- would be $815.91 for

the county.

Because the school board is exempt from Amendment 1,

the extra homestead does not apply so the $200,000 home

would still have a taxable value of $175,000.

By multiplying the $175,000 by the school board's

current millage rate of 8.0650, the taxable value on

that $200,000 home would be $1,411.38 for the school

district.

So now the grand total for the owner of that home would

be $2,227.29.

John Emerson, chief deputy with the property

appraiser's office, said he hopes to get the latest

property tax information calculated and ready to give

to the budget office by April.

Those numbers will be crucial as Zoettlein works to

present his balanced budget to commissioners by July.

"In most cases, we will have a pretty clear picture of

what the 2008 just values of the real property within

Hernando County will be," Emerson said.

When the property appraiser calculates taxable value,

he starts out with the "just value," or market value –

what a piece of property should sell for in the open

market.

Meanwhile, residents are steadily filing into the

appraiser's office trying to meet the March 1 deadline

to file for homestead exemptions.

And, to date, Emerson said about 2,600 people have

filed for the Senior Citizens' Homestead Exemption

program, available to eligible homeowners 65 and older.

Emerson said he had 300 people in the office lobby

Tuesday and the switchboard logged 435 phone calls on

Wednesday.

Reporter Michael D. Bates can be reached at

352-544-5290 or mbates@hernandotoday.com.

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