Broward Property tax cut by 9%!

Broward cuts property tax by 9%, but referendums could raise bills.
By Scott Wyman South Florida Sun-Sentinel Posted June 21 2006

Area homeowners this fall will see the largest reduction in property tax rates for county services in at least a decade, but they could be asked to pay more to build new courthouses and improve mass transit.Broward County commissioners Tuesday agreed to cut the property tax rate at least 9 percent in light of the mammoth growth in real estate values last year. The move was partly in recognition of the high housing costs many residents face and partly to pave the way with goodwill for the twin tax increases commissioners may propose. The average taxpayer who owns a $168,000 house with a homestead exemption would save $59 over last year's tax bill.
Commissioners also unanimously ordered their staff to draw up a referendum for the November ballot to borrow about $500 million to improve the court system. And skeptical commissioners heard a final appeal by transit proponents to ask voters to pay a penny more in sales tax to build a light-rail system and improve bus service.The tax rate cut from $6.80 to $6.20 per $1,000 of assessed valuation is more than twice as large as the cut commissioners approved last year, but it still does not return the entire revenue increase county coffers will reap from the 19 percent growth in the tax base last year. Despite Hurricane Wilma and a year-end cool-down in the real estate market, the tax base grew faster than ever and now totals $157 billion."You can only ask the public to do so much without also giving something back," County Mayor Ben Graber said of the timing of the tax rate cut and tax hike talk.Rising property values, though, mean the tax burden will continue to grow significantly for home buyers and those who do not have homestead protection, such as landlords, snowbirds and business owners. The owner of the average property without a homestead, valued at $312,000, will pay an extra $240 in county taxes.The tax rate cut could be larger if the final tax roll set by the Property Appraiser's Office on July 1 is more than the estimates released earlier this month. Commissioners will make a final decision on the rate at budget hearings in September.The proposed referendum would ask voters to increase property taxes to build a new high-rise courthouse in downtown Fort Lauderdale, remodel the newer wing of the existing building and build a satellite courthouse in the suburbs. The project would cost the average homeowner about $30 a year.The current courthouse, built a half-century ago, is in poor condition because of the wear and tear of 10,000 visitors a week. Officials argue the building is too small for Broward's caseload and growing population.A court tower with 53 courtrooms would be built at Southeast Third Avenue and Sixth Street next to the 110 Tower. The older section of the current courthouse would be leveled and reserved for a new federal courthouse. The location of the 12-courtroom satellite courthouse has not been decided.Although some commissioners said they wanted more details on the project before they decide in August whether to put the issue on the ballot, most vowed to support it."There is never a good time to ask the public for money, but we are literally at a crisis," Commissioner John Rodstrom said.The commission remained divided about the proposed transit tax, but will decide next week whether to give the go-ahead to a November referendum on that as well. A person making $50,000 would pay about $45 more in estimated sales tax under the proposal.The People for Progress coalition, led by construction executive James Cummings and former county commissioner John Hart, sought to ease concerns the group lacked plans on how the extra $260 million a year in revenue would be spent and who would control it.They mapped out a 20-year plan they have developed. The cornerstones of the plan would be commuter rail service along the Florida East Coast Railroad line and a new light-rail system running along State Road 7 and Interstate 595.Their proposal also would create three limited-stop bus routes along east-west corridors like Oakland Park Boulevard, potentially using dedicated lanes to speed up travel. The time between regular bus service on major routes at rush hour would be cut to 10 minutes, and express service would link western suburbs to downtown Fort Lauderdale, Miami and Boca Raton.Hart and Cummings pressed commissioners to set a November referendum, saying the county would lose out on millions of dollars in federal aid if no local money is earmarked this year.Scott Wyman can be reached at swyman@sun-sentinel.com or 954-356-4511.