Business Owners Want Lower Taxes

Business owners en masse are calling for lower commercial property taxes.

A group of them met with Hernando County Property Appraiser Alvin Mazourek last week to let him know.

With the ongoing economic slump, they were hoping for some relief.

It is likely that all of them will be filing petitions soon.

"We really wanted Alvin to be our champion," said Don Whiting, who owns Whiting Insurance Agency in Spring Hill. "We really did want to be better represented with these assessments."

The taxes for Whiting's office on Spring Hill Drive increased by 24 percent compared to last year. He also owns a plaza along Powell Road. The taxes there went up by 22 percent, he said.

The market value of the plaza, he guessed, is approximately $1.25 million. He is expected to pay $28,000 in taxes for 2008.

Owners of the Palace Grand, located at 275 Della Court in Spring Hill, face an increase of 30 percent, Whiting said. He knows of others who will pay as much as 50 percent more.

"That didn't sit well with us," he said.

Those who attended the meeting said everyone remained cordial throughout. Mazourek encouraged all of the business owners to file a petition and take their cases before a trio of magistrates.

Whiting said he was under the impression other counties were reducing taxes for commercial property owners.

That is not the case in Hillsborough County, said appraiser Tim Wilmath.

"It's about a 7 to 10 percent spike on all commercial property this year," he said. "Only residential is going down. That might happen next year ... Commercial always trails behind residential."

Some municipalities in Pinellas County also might have raised taxes, said appraiser Ron Anderson.

In Hernando County, taxable value for improved commercial property went up significantly, from $889 million to more than $1 billion.

"There were some people who saw the economy going down," Mazourek said. "They want their taxes to go down."

More than 240 petitions were filed through the property appraiser's office in 2007. This year, the office has reported 340 petitions.

Petitions are filed whenever a taxpayer has questions or concerns about his or her bill. If they are not resolved, the next course of action is arbitration. A property owner can request a hearing before a panel of magistrates.

Tax amounts vary based on property values, the size of the property and property type, Mazourek said.

Whiting is afraid commercial property taxes will have a "domino effect." Those who rent business space will be expected to pay their landlords.

"These costs are going to be passed on to the occupants of these plazas," he said. "That might be enough to drive them out of business or lay some people off."

Stewart Campbell, who owns Patio Paradise at the Commercial Way Shopping Plaza in Spring Hill, said he expects taxes to increase when his landlord hands him the bill. In anticipation of a higher tax statement, he threatened to move if his rent didn't go down. The landlord relented, he said.

"Business is not great right now," Campbell admitted, "but I still have to pay taxes ... Other than (complain) about it, there's not much you can do other than pay it."