Florida Property Taxes Run Amock

Homeowners - Who’s in your wallet?

by W.C. Denmark

Stealing an advertising headline is pretty mundane. I like the way I’ve twisted it to my purpose and doubt Capital One will have legal grounds or interest in punishing me financially. They will not suffer any loss of dare I say, capital?

However recent increases in taxation are causing financial losses. Florida homeowners are being punished by government’s inability to stop spending. It has to be bad when a governor uses tax reduction as a plank to get elected and then stays on track. Republican, Charlie Crist seems hell bent to keep his promise. 

Much to the chagrin of a favored group of residents Mr. Crist has asked for 2.8 million dollars in cuts from our city fathers. To the horror of property owners city representatives actually went to Tallahassee to protest forced tax reductions. If news reports are correct there was a long line of public servants, special interest groups and union representatives throwing temper tantrums on the steps of our state capitol.

Everyone has got a finger in the homeowner’s pie. This has created a real problem. Many are stuck in homesteaded houses despite their desire to change. Old folks take a beating if they down size and young families must sell a child on Ebay to afford a bigger home. Second homes are even worse off. Taxes are killing the market so goes our economy.

Every dollar we pay in taxes goes into the proverbial strongbox and is given to someone else by a politician. Not paying attention to these folks allows this terrible trend to continue unabated. In New Smyrna Beach only 4400 votes dictated where our tax money went.

I don’t think government should be in business. As I cross the fifties my life lessons reinforce this belief. Here is an example. New Smyrna Beach recently spent 3.3 million tax dollars renovating their municipal golf course.  As a non-golfing tax payer I am not happy about this. Why are we literally forced to support 688 members of an unsuccessful golf course?  I will bet you dinner we never get our money back.

Nationwide golf rounds are flat. New golfers are replaced by dying duffers and quitter’s equally. In areas like ours where new courses are being built individual course rounds are declining. When the new course on SR 44 opens I predict we will be forced to fund more of NSB Municipal Golf Course.  At least one other course is scheduled for construction on 44. Management at the course can not force more people to play. In season they can do almost 300 rounds and then daylight runs out. In summer they might do 60 to 75 rounds a day because every fairway is a sweltering inferno. If they lower prices it will only increase wear not cash. Sorry city fathers that dog won’t hunt.

No one ever mentions return on tax funded investments to my satisfaction. In the real world investments show a return or you get rid of them. If you have a property worth five million dollars you would expect at least a 5% return would you not? When gasoline prices spiked recently everyone hated oil companies for making a mere 11% profit. This particular city business should be paying us $250,000 or more.

If you or I would invest three million three hundred thousand dollars in an existing business we would expect it to increase in value. Appraisers would consider property sold recently, replacement cost and most importantly income. Income multiplied out by ten years will be the single most important factor in setting a sale price for our investment. Since renovation there has been no increase in rounds played. No increase in rounds means zero increase in value. In fact News Journal reported play dropped down so low our city had to kick in an additional $249,000 this year. We just threw 3.549 million dollars in tax money down the drain by any investment standard. Those 688 members and city golf course employees must vote early and often. How about you?

Sugar Mill Country Club finished a 3.8 million dollar renovation in 2006 and got 27 holes done with new tee boxes and greens, moved several bunkers, tiff eagle turf, a fitness center built including the equipment, and complete renovation of the Clubhouse (walls removed, new ceilings, skylights, flooring, carpet, tables and chairs for 350 people and built in touch of a button audio/visual equipment. The city course renovation, not so much.

While tax dollars fund the muni-favored 688’s hobby and prop up values of a few homes other golf courses are held hostage. Tax payers, property owners and employees are forced into competition with their own money. Turnbull Bay Golf Course, Hidden Lakes, Sugar Mill Country Club and soon the Venetian are subsidizing their own competition. This happens only because this city is permitted award our money to a few favored citizens. The rest of us pay and pay. Have you voted for this?  Perhaps you should hit the polls next chance you get.

What more proof do you need that the city should not be in business with our money?  Don’t make me talk about fiber optics! On page 114 of the NSB city website they project possible 08 payroll of $919,110 for the muni. Turnbull Bay and Hidden Lakes Golf Course both report their payrolls well under $400,000.  Isn’t that interesting? The course offering the lowest prices has the highest payroll. Is it a way to run a business or a way to reward your buddies? Private operators can run two golf courses for less than one city course.

If the city were truly interested in providing tax relief and showing a return on investment they would sell many of their good old boys hobby shops. The golf course, marina, Chamber of Commerce building and the Women’s Club come to mind.

As a marketing guy I know that if you have read this far your interested in my ramblings. Some readers will be furious and some hopefully you, will be looking at government in business from a new perspective. So throwing caution to the wind I’ll make this even more aggravating.

New Smyrna Beach municipal golf course should be sold. Let’s get outside the box. The property is probably 120 to 140 acres. As a golf course its sale will return five million dollars give or take a million. However as an affordable housing site it is zoned for about 1400 units. A property where you could build 1400 units is worth about $15,000 per unit or $21,000,000 as raw land. Impact fees and charges for a project like this would add another $3,000,000 to the income for a total of twenty four million dollars up front.

If we stick with affordable housing and really provide a service to people, homes could be sold in the $150,000 range. Nice homes for nice people and an overall tax reduction for you. Many city commission meetings look for a way to do just that. If we did it at the municipal we would add another million dollars net in taxes to our coffers every year.

Clearly this example casts doubt on the need for heavy taxes. There are many others. Property owners in Volusia County need a break.  We should sell off every boondoggle and good old boy clubhouse in town. I don’t golf, keep a boat at the marina or ride in a $300,000 pontoon boat. Do you? It matters not, money is flying out of your wallet into these and other pet projects at city hall.

To their credit Mayor Vandergrift and Commissioner Hathaway have asked for a 10% spending cut. Others on our council are crying the sky is falling and drag their heels.  Some have spoken about cuts in police officers working our streets others have talked about meals on wheels. This will never get fixed unless we make them act responsibly.

Simply stated you need to vote. Many voters pay no taxes. Some can even vote to get pay raises despite high wages or dismal performance. The economy is driven by homeowners and their money. If you’re happy with a politician’s use of your money tell him or her to keep it. If you’re like many disgusted at pandering, favoritism hikes in taxes and utilities you need to tell them to make changes or vote for someone else.

Start paying attention. Look up wages and benefits for city employees. Some have had more than 100% increases in the past few years. If you’re mad about taxes understand it’s your fault they are so high. Purchases and projects have escalated with increases in tax revenue.

Perhaps you don’t want changes and support government in business. There are lots of people who have had it with waste and excess.  All of my figures are subject to adjustment and manipulation but even if I’m off by 50% and I honestly don’t think I’m off 15% in any direction but at 50% this situation should be unacceptable.

Homeowners are carrying the state. If you are one or involved in construction or retail trades its time you get busy. Go online tonight find out who really is in your wallet. Make darn sure you vote – they always do.

Contact everybody!  The Florida House of Representatives web address is http://www.myfloridahouse.gov . Volusia County is http://www.volusia.org/ Orange County http://www.orangecountyfl.net Seminole http://www.seminolecountyfl.gov/ Florida Senate http://www.flsenate.gov  Axe the Tax http://www.axthetax.org Volusia Tax Reform and http://www.volusiataxreform.blogspot.com/ City of New Smyrna Beach  http://www.cityofnsb.com and The Shadow http://www.nsbshadow.comDoug Guetzloe
Chairman
Ax the Tax
www.axthetax.org
750 South Orlando Avenue
Suite 202
Winter Park, FL 32789
(407) 388-1776 - office
(407) 629-7760 - telefax
(877) Ax-Taxes - toll free
doug@axthetax.org