DELAND — Volusia County residents could see their next tax bills increase if the county budget moves ahead as expected, according to a recent presentation.
County officials are still working on their recommended budget for the County Council to consider. But CFO Ryan Ossowski presented a five-year forecast June 16 that gave council members a heads up on what’s likely ahead.
Under that proposal, millage rates would stay flat across countywide taxing funds (the same as the current tax year). That includes the General Fund, which is the biggest source of property tax revenue for the county government.
Ossowski warned of the effects of reducing the General Fund millage rate, in light of possible statewide property tax reform heading to the ballot in November. If approved, the state property tax reform would increase the homestead exemption (aside from school taxes, which would not be reduced) to $150,000 in 2027 and then to the full amount of $250,000 in 2028, according to the Tax Foundation, a leading tax policy nonprofit based in Washington, D.C.
“Reducing the millage rate below the proposed flat rate could create fiscal exposure as we go into an environment where our property tax base will be declining. … There would be a smaller buffer next year for all of the cuts that we have to make,” Ossowski said.
A flat millage rate typically means a tax increase for homeowners whose property values have gone up, unless other factors are at play such as new tax exemptions.
The county government has several millage rates that apply to all residents: The General Fund, the Law Enforcement Fund, the Library Fund, Volusia ECHO and Volusia Forever.
Other county government property tax rates, such as mosquito control; fire services; Ponce De Leon Inlet and Port District; municipal service district; and the Silver Sands-Bethune Beach MSD, apply depending on where a property is located. The county is looking at a flat tax rate for those districts as well, except for a decrease in the port district (from 0.0660 to 0.0641 mills) and fire services (from 3.6236 to 3.599 mills).
The General Fund tax rate, others projected to stay flat instead of rolling back
While the county typically tries to reduce the General Fund rate, officials are looking at a flat millage rate in that and other funds.
Following are the anticipated tax rates for funds presented on June 16:
Combined, that comes to 5.5698 mills. If a property’s taxable value increased from $350,000 to $360,000, the property would see their annual tax bill increase by about $56 for those five taxing funds.
A property owner’s tax bill also includes tax rates levied by separate governing bodies, including the school district; a city government if the property falls within city boundaries; the Florida Inland Navigation District; and others.
Budget hearings ahead, property tax reform looms for Volusia County
County officials plan to unveil the recommended budget on July 21. That’s when the County Council will set tentative millage rates, and those proposed rates will be sent out in notices to property owners.
The new budget year begins Oct. 1. The county must hold two public hearings in September to adopt the budget. But officials try to firm up the budget as much as possible well before September.
The county could face big impacts from state property tax reform on November’s general election ballot. If approved, the first of those proposed exemptions don’t kick in until 2027.
— Sheldon Gardner is a local government reporter for The Daytona Beach News-Journal.
This article originally appeared on The Daytona Beach News-Journal: Volusia County tax bills could be higher this year. What’s ahead
Reporting by Sheldon Gardner, Daytona Beach News-Journal / The Daytona Beach News-Journal
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By Sheldon Gardner, Daytona Beach News-Journal | USA TODAY Network
