Pensacola-area property tax bills will rise with real estate and the impact of inflation
If you thought last year’s rising property tax bill was a blow to the wallet, the carry-over effect of 2021’s crazy housing market – coupled with a huge rise in inflation – led officials to project up to a 10% increase in the property’s assessed value this year.
Property appraisers calculate the bills that will be due to homeowners in November based on home values on January 1, so in recent weeks they have started these appraisals based on sales and values throughout 2021.
Santa Rosa County real estate appraiser Gregory Brown said with how quickly real estate is moving throughout 2021, there will likely be a shock for new homeowners who have based their monthly expenses on previous owner’s invoices.
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“People who didn’t have a homestead before or who have just purchased a home in the state of Florida will feel the brunt of these market increases and that’s really one of the biggest issues our office is facing. faced,” he said.
If a homeowner has a property exemption — a decrease in assessed value for owners who occupy their home as their principal residence — the maximum their assessed value can increase from year to year is capped. For anyone who owns a second home or investment property or has purchased a home in Florida in the past year, the assessed value resets with the sale of the home, and they are likely to see a hefty bill when property tax season.
For tenants, this increase in property tax bills often means that their monthly rent payment is increased as the landlord passes on the cost of owning the home to the tenant.
Escambia County Deputy Chief Real Estate Appraiser Gary “Bubba” Peters estimated that for a $200,000 home, for example, there could be up to $1,400 difference between the bill property tax on family property and that of non-family property, an increase that new owners will see the following year. selling them until their own savings on the farm are paid out next year.
For owner-occupied units that qualify for a homestead exemption, the year-to-year limit is capped at the lesser of 3% or the Consumer Price Index.
Peters said Friday this is the first year in his memory that the bureau will work on the 3% cap, rather than the CPI, because inflation has been so drastic. Just this week property appraisers were told the CPI had risen to 7% for this year from 1.4% last year.
While this will likely mean a bigger property tax bill, the good news is that the increase is the result of massive growth in the area and therefore an increase in property value.
Peters said in Escambia County, the Beulah and Cantonment areas saw the strongest growth following trends from previous years, as well as west of downtown in the Tanyard area.
“Of course Beulah has been the center point of growth, but now it’s starting to push north and you’re seeing a lot more growth north of Nine Mile or Ten Mile Road,” he said. “Downtown growth is happening in the Tanyards area and there are areas that are still seeing value growth like North Hill and East Hill.”
In Santa Rosa County, Brown said there’s been an eye for commercial growth in Navarre and Pace in particular, a natural progression a few years after those areas saw huge residential growth.
“The trend is for commercial to follow residential because these businesses and businesses want to make sure there are residential homes or individuals out there to support those businesses,” he said. “Navarre is definitely a very hot region, Midway, Pace, then even outside the Chumuckla region. That’s a lot in areas where you don’t usually expect growth, like Munson, where people are trying to move to more rural areas.
Homeowners have until March 1 to file a property exemption application on their property, after which the assessors’ offices will finalize values and invoices to be sent to the state this summer. Tax bills will be released in November and the revenues will help bolster government budgets.
The Santa Rosa and Escambia county offices have online filing available and will be open Saturday mornings through March 1 to give residents more options for filing their exemptions.
Emma Kennedy can be reached at [email protected] or 850-480-6979.