Milling About In Hernando County

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.