Land Taxes Take Toll in Hernando, Pasco Counties; Appraisals Double Since Last Year
Rising rates and higher Florida mortgage bills aren’t the only costs afflicting Sunshine State residents these days. Janet and Allen Jurkowski have waited more than two years for their home to be built just north of County Line Road in St. Petersburg, Fla.
The retirees from Long Island, N.Y. endured cost overruns, the bankruptcy filing of their home builder and disagreements with the county Development Department. Then, a week ago, another blow: They received notice from the Property Appraiser’s Office that their half-acre lot had been valued at $71,084, meaning they can expect $1,408 in real estate taxes this year.
The appraisal on the lot is more than twice that of last year, $28,060, and four times higher than the assessed value in 2004 — $17,771.
“We weren’t looking to make money on an investment. We were looking for a home. Now, the property tax has quadrupled. It’s ludicrous,” said Janet Jurkowski, 54.
She mentioned investors because she blames them for the skyrocketing value of lots in Spring Hill. And she is at least partially right, says County Property Appraiser Alvin Mazourek. Upon receiving their notice of proposed taxes in the mail recently, county landowners have flooded the appraiser’s office with questions and complaints — most of them not positive.
Florida real estate values have universally skyrocketed, and property in Hernando County has been no exception, increasing more than 30 percent since year. The value of the average house jumped 24 percent, while vacant lots climbed by 90 percent, probably because lots attract more investors looking to resell them for a profit.
Another indication of speculation: 2,034 lots in the county were sold more than one time in 2005, compared with 336 lots so far in 2006. Nearby Pasco County has seen similar run-ups in price, and the increased home loan, insurance and local tax costs combined are starting to take their toll on homeowners.
Also, owners of lots feel the sting of increased appraisals more than a typical homeowner because they are not protected by the 1992 Save Our Homes state constitutional amendment, which limits the annual increase in the assessed value of a homestead property to 3 percent or a figure equal to the Consumer Price Index (CPI), whichever is less. If a person doesn’t qualify for the exemption, their taxes will rise proportionately to the home prices.
When struggling to make Florida mortgage loan payments as is, these costs can be troubling, to say the least. While prices for lots and homes have fallen in the past year, owners haven’t seen significant relief yet.
