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County Commission Approves $52 Million Tax Cut
Aug 1, 2006 FOR IMMEDIATE RELEASE Contact: Pete Winton, Lee County Administration COUNTY COMMISSION APPROVES $52 MILLION TAX CUT FORT MYERS, Fla. (August 1, 2006) – The Board of Lee County Commissioners approved a $52 million reduction in property taxes today that will result in homesteaded property owners with the Save Our Homes protection paying less in county property taxes this year than they did last year. The combined tax rate for all six county property tax funds would be reduced 0.6571 mills from 6.6272 mills to 5.9701 mills, representing a 9.9 percent reduction in the combined tax rate. Commissioners unanimously (Commissioner Bob Janes has an excused absence) approved the following tax rate reductions (in mills; one mill equals a $1 tax for every $1,000 of assessed taxable value): COUNTYWIDE General Fund – reduced from 3.9332 to 3.5804 ($30 million reduction in projected revenues) Capital Improvement Fund – reduce from 0.5124 to 0.4536 ($5 million reduction) Conservation 20/20 – remained the same at 0.5000 Bringing the countywide rate from 4.9456 to 4.5340 NON-COUNTYWIDE Library Fund – reduce from 0.6055 to 0.4085 ($15 million reduction in projected revenues) Unincorporated MSTU Fund – reduce from 1.0028 to 0.9543 ($2 million reduction) All Hazards Protection Fund – remained the same at 0.0733 Bringing the non-countywide rate from 1.6816 to 1.4361 On a home valued at $200,000 in the unincorporated area, the property owner will pay $79 less in county taxes this year compared to last year ($1,081 in 2006 compared to $1,160 in 2005; see example below). While county property taxes, including the Sheriff and other Constitutional Officers, represent only 33 percent (19% county and mstu's, 10% sheriff, 4% other constitutionals) of property taxes paid by homeowners (for example, the School District represents 42 percent), if other jurisdictions follow suit with tax rate reductions, homesteaded homeowners will realize a significant tax savings this year, considering their assessments can only increase 3 percent and the tax rate percentage reductions are likely to be much more than that. The Board agreed to hold off making any decisions on the Conservation 20/20 tax rate or All-Hazards Protection tax rate until the budget public hearings September 7 and 21. The Commission can further reduce tax rates after today, but cannot increase them. The tax rate recommendations include a proposal to pump an additional $30 million into roads next year to accelerate projects and help relieve congestion. This is the second year in a row the County Commission has approved a substantial tax rate reduction. Last year, the Board approved $26 million of cuts ($20 million in the general fund and $6 million in the unincorporated MSTU fund). TAX RATE EXAMPLE Assessed value $200,000 New assessment at 3% increase 206,000 2005 county taxes ($175,000/1,000 X 6.6272) $ 1,159.76 2006 county taxes ($181,000/1,000 X 5.9701) 1,080.59 Net tax savings from county $ (79.17)
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