Tax Increases Despite High Number of Bank Owned Foreclosure Homes

by Simon Lindsay on Foreclosure Crisis

The state of Florida has suffered greatly from the housing market crisis, with huge supplies of bank owned foreclosure homes dragging down the values of properties in the area. Despite these problems, officials from Broward and Miami-Dade counties have warned property owners that they are soon to receive notices in the mail regarding tax rate increases.

The current year saw the number of Miami foreclosed homes reaching record levels, resulting in the decline of housing prices and the whole real property market getting devalued by as much as 40%. On top of these developments, property owners from the counties are set to face further increases in property taxes, according to Property Appraiser officials.

They also revealed that Tax Notices sent to property owners in the areas will contain information such as how the huge number of Florida foreclosure homes for sale resulted in the taxable value of properties declining by 13.4%. To compensate for the revenue loss caused by declining property values, tax rates for property owners will be raised by an average of 3%.

In Broward, the problem of bank owned foreclosure homes has led to taxable value declining by over 11%. Commissioners of the county debated earlier whether property tax should be increased by as much as 5% to cover the expected budget shortfall. In the end, the average three percent was agreed upon.

On top of the property tax hike and the numerous properties under bank foreclosure listings, residents of both counties might also have to deal with cut backs on certain services, such as park and library hours, higher bus fares and less transit services. These cuts are still being deliberated by officials, though.

Broward County residents are also facing possible layoffs expected to affect around 150 employees and potential unpaid vacation days. One positive news amid all these issues being considered is that properties affected by the Chinese Drywall problem will be considered for certain exemptions.

The proposed hike is expected to affect longtime property owners, while tax rates would likely decline or stay the same for an estimated 65% of county property owners. Some homeowners have expressed surprise that county officials have seen it fit to increase tax rates while the real property market is being hammered by thousands of bank owned foreclosure homes.

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