County To Examine Business Incentives, Taxes

Concerned that local businesses are being taxed out of existence and many are closing down because of high taxes, county commissioners will meet Oct. 21 to explore possible solutions.

Office of Business Development Director Mike McHugh will present an amendment to the county's existing incentive ordinance, which deals with the expansion of existing businesses and the recruitment of new industry.

Property Appraiser Alvin Mazourek is also expected to update the board on the status of commercial property values.

Commissioner Rose Rocco, who attended an informal gathering of business owners Monday at the Palace Grand in Spring Hill, heard from dozens of business owners who say they cannot understand how the value of their commercial property is rising despite a tanking economy.

Rocco, who reported back to the board at Wednesday's Land Use Hearing, said that while it is important to recruit new industry, there needs to be an increased emphasis on existing businesses crushed by higher taxes.

"They really need to get some kind of help for what their businesses are being appraised for," Rocco said. "They are having trouble keeping afloat."

Mazourek said he sympathizes with business owners but his hands are tied by state guidelines in interpreting their tax bill.

"We're being as fair and equitable as we can, based upon the data," Mazourek said. "It's got to be (based on) data, not personal feelings or anything."

The taxable value of commercial property in Hernando County rose from $1.591 billion in 2007 to $1.818 billion in 2008, roughly 14 percent.

Mazourek said he realizes there was a downturn in the economy a couple years ago but, because he must tax in arrears, the most recent tax bills reflect 2007 data.

Since tax notices have been sent out in mid-August, 332 taxpayers - who include business owners and property owners - have filed petitions with Mazourek's office, asking for their property to be reassessed.

Mazourek said 92 of those petitions have been resolved without having to take the grievances to a special magistrate or the value adjustment board.

By comparison, there were 254 petitions filed in 2007; 212 in 2006; 212 in 2005 and 341 in 2004.

Mazourek said commercial property tax assessments normally lag behind residential properties. Homeowners typically see a decrease in their tax bills before business owners.

Rocco believes the Oct. 21 brainstorming session will lead to productive debate among board members.

Small businesses, she said, are the lifeblood of Hernando County. If they close up, she said the county's tax base suffers, the job market goes down and it sends a negative message to other industries that Hernando County is not a good place to set up shop.

"There's desperation among many of the business owners in the county right now," said Spring Hill appraiser Anthony Kanaris, who attended the Palace Grand meeting.

He said businesses were already cutting corners and operating with skeleton crews to make it through hard times. When the tax bills hit the mailbox, Kanaris said it caused additional panic.

Kanaris said the median value of commercial property - according to multiple listing service statistics - in Hernando County in 2006 was $338,000. In 2007, the median value was $305,960.

Current-year data from the MLS is incomplete, he said.

Kanaris applauded Mazourek for working with business owners and trying to readjust their taxes.

"He's in a difficult position," Kanaris said. "(But) the county needs to have money coming in, and that comes largely from ad valorem taxes."