CLAY COUNTY PROPERTY APPRAISER ROGER A. SUGGS, CFA, AAS

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1 CLAY COUNTY PROPERTY APPRAISER ROGER A. SUGGS, CFA, AAS It is the commitment of this office to execute the duties and responsibilities of the Office of Property Appraiser in a fair and equitable manner, to provide accurate information and courteous, professional assistance to all those who request, or display a need for that assistance, without exception Annual Report

2 About The Property Appraiser s Office Welcome to the Clay County Property Appraiser s 2012 Annual Report. My pledge to you of accuracy, transparency, and fairness has been my priority since I took office on January 6, This is our first annual report delivering summarized data from our property database. We look forward to your feedback as a guide for the information we include in future editions. The property appraiser is required by Florida law to appraise all real and tangible property within his or her respective county, annually for the purpose of taxation. These duties also include the administration of property tax exemptions and reductions. There will be new challenges in 2013 as Clay County continues to contend with the economic downturn and its effect on the tax roll. The Property Appraiser s office will continue to ensure that property values in Clay County are fair, accurate and clearly communicated. Please feel free to contact me at rsuggs@ccpao.com. Sincerely, Roger A. Suggs, CFA, AAS Clay County Property Appraiser State-Certified General Real Estate Appraiser RZ2771

3 Table of Contents General Information 2 Location, Population, and Government 3 History 4 Duties of the Property Appraiser and Dates to Remember 5 Office Locations 6 Employee Credentials Exemptions 7 Exemptions 8 Homestead Exemption 9 Homestead Portability 10 Institutional Exemptions 11 Agricultural Classification 12 Exemptions and Classified Use Values 13 Recent Constitutional Changes Value 14 Estimating Value 15 Real Property 16 Real Property Parcels 17 Single Family Residential 18 Residential Condominiums 19 Mobile Homes 20 Tangible Personal Property 21 Tangible Personal Property cont. 22 Market Value 23 Market Value 24 Assessed Value Value (Continued) 25 Save Our Homes 26 10% Cap for Non-Homestead Property 27 Taxable Value 28 Taxable Value by Taxing Authority 29 Taxable Value by Taxing Authority cont. 30 Top Ten Taxpayers 31 Real Property Parcels and Values 32 Permit Activity Taxing Authorities 33 Taxing Authorities and Millage Rates 34 Taxes: Where Your Money Goes 35 BCC and MSTU 36 City of Green Cove Springs 37 Town of Orange Park 38 Town of Penney Farms 39 City of Keystone Heights 40 Redevelopment Areas 41 Redevelopment Districts

4 Clay County Location, Population, and Government Clay County encompasses approximately 644 square miles and includes the incorporated municipalities of the City of Green Cove Springs, Town of Penney Farms, City of Keystone Heights, and Town of Orange Park. It is situated in northeast Florida, southwest of the city of Jacksonville and west of historic St. Augustine. The county s entire eastern border is formed by the St. Johns River. Approximately 202 square miles, or 31.40% of the total land size is comprised of government owned property (excluding public right-of-ways and river/waterway bottoms). Body of Government Acres State 123,104 County 3,049 Municipal 1,609 School 1,626 Federal 11 According to the 2010 census, there were 190,865 people, 65,356 households, and 39,390 families residing in the county. It is projected that Clay County s population will experience a 93% increase between 2000 and 2030, while Florida s population as a whole is projected to increase by only 50%. The Board of County Commissioners is the 5 member, law-making body of the county, operating under the Home Rule charter since Each elected member represents a specific district within the county for a designated four year term. Some specific government functions are performed by separately elected Constitutional Officers who are elected county-wide. These two groups comprise the elected officials who are responsible to the voters of Clay County. 2

5 Clay County History Clay County was created on December 31, 1858, from a section of Duval County. Its name is in honor of Henry Clay, a famous American statesman, member of the United States Senate from Kentucky, and United States Secretary of State. Clay County was once a popular destination for tourists visiting from the northern states. The therapeutic, warm springs and mild climate were major draws for visitors. Steamboats brought them to various hotels in Green Cove Springs the St. Elmo, Clarendon, and the Oakland. President Grover Cleveland was the most prominent of such tourists; he had spring water shipped to the White House. Clay County s popularity among tourists peaked during the last three decades of the 19 th century. It was later eclipsed by Henry Flagler s extension of the Florida East Coast Railway to points such as Palm Beach and Miami. The military has also played an important role in Clay County history. In 1939, Camp Blanding opened on Kingsley Lake in central Clay County. The Florida National Guard developed this 28,000 acre complex. During World War II, it trained over 90,000 troops and became the fourth largest city in the state. In Green Cove Springs, Lee Field was a flight training center. After World War II, Lee Field became a base for the mothball fleet. Although Lee Field closed in the early 1960s, Camp Blanding continues to operate today. Clay County is also a popular choice of residence for military personnel who are stationed on bases in nearby Duval County. 3

6 Duties of the Property Appraiser Duties of the Property Appraiser The Clay County Property Appraiser, an elected Constitutional Officer, is responsible for producing an annual assessment roll, which is a record of each property in the county. The intended purpose of the assessment roll is to provide a basis for ad valorem ( according to value ) taxation of property pursuant to the Florida constitution, statutes, administrative rules, and regulatory agencies. The property appraiser is responsible for identifying, locating, and fairly valuing all property, both real and personal. Additionally, the property appraiser tracks changes of ownership, records up to date descriptions of buildings and property characteristics, administers exemptions, assessment reductions, classifications and other forms of property tax relief, and utilizes a geographic information (GIS) system to provide up to date property ownership maps. A progressive computer assisted mass appraisal (CAMA) system is relied upon to ensure consistency and equity. The property appraiser does not determine the tax rates; that is the responsibility of the various taxing authorities. Furthermore, the property appraiser does not collect property taxes; property tax payments are made to the Clay County Tax Collector. Dates to Remember January 1 March 1 April 1 The date which determines property ownership, value, classifications, and any exemptions. Filing deadline for portability, exemptions, and assessment reductions, to include: homestead, senior exemption, widow/widower, deployed military, disability, charitable, fraternal, educational, literary, benevolent, scientific, religious, agricultural, conservation, and historically classified properties. Filing deadline for Tangible Personal Property returns. Mid-August Notice of proposed property taxes, also called Truth in Millage (TRIM) notices, are mailed to property owners. TRIM notices contain the Property Appraiser s proposed estimates of value as of January 1, and exemptions or assessment reductions on the property. The notices also contain the taxing authorities proposed tax (millage) rates, budget hearing locations and times, and the deadline for filing petitions with the Value Adjustment Board. November 1 Current year tax bills are mailed by the Clay County Tax Collector. 4

7 Office Locations Office Locations Main Office 477 Houston Street 2nd Floor, Administration Building Green Cove Springs, FL Phone: Fax: Branch Office 1518 Park Avenue Orange Park, FL Phone: Fax: Department Phone Listings Tangible Personal Property Commercial Assessments Residential Assessments Land / Agriculture Assessments Exemptions GIS Mapping Land Records Information Technology Information is also available online at ccpao.com and 5

8 Employee Credentials Employee Credentials 6

9 Exemptions Clay County Property Appraiser

10 Exemptions Ad Valorem Tax Exemptions and Assessment Reductions The Florida Constitution provides for a number of property exemptions and assessment reductions, which will reduce the taxable value of a property. The property owner must qualify for the exemption as of January 1 of the current tax year. The deadline for filing exemption or assessment reduction applications is March 1. Homestead Exemption up to $50,000 Veterans Service Connected Total and Permanent Disability Exemption $5,000 Exemption for Disabled Ex-Servicemember or Surviving Spouse Exemption for Disabled Veterans Confined to Wheelchairs Homestead Property Tax Discount for Veterans Age 65 and Older With a Combat Related Disability Charitable, Religious, Scientific, or Literary Exemption Homestead Ad Valorem Tax Credit for Deployed Military Personnel (New for 2011 Assessment Year) Additional Homestead Exemption up to $50,000 for Persons 65 and Older (annual application and income verification required) Totally and Permanently Disabled Persons Exemption (annual income verification required) $500 Exemption for Widows, Widowers, Blind Persons, and Totally and Permanently Disabled Persons Reduction in Assessment for Living Quarters of Parents or Grandparents Educational Property Exemption Real Property Dedicated in Perpetuity for Conservation Exemption Agricultural Classification For more information, please contact our offices or website at 7

11 Homestead Exemption Homestead Exemption The most common real property exemption is the homestead exemption. Florida residents who have legal or equitable title to property, occupy the home, have the intention of making the property their permanent residence as of January 1, and make application, are eligible for homestead exemption. Year Number of Exemptions % Change , , % , % , % , % , % , % , % , % Under the Florida Constitution, qualified residents may receive a homestead exemption that reduces the taxable value of their property by as much as $50,000. The first $25,000 exemption applies to all property taxes, including school district taxes. The additional exemption of up to $25,000 applies to the assessed value between $50,000 and $75,000, and only to non-school taxes. 8

12 Homestead Portability Homestead Portability The Homestead Portability feature was provided for in Constitutional Amendment 1 in If your home has a homestead exemption, and has accumulated a Save Our Homes cap, you may be eligible to transfer the savings to the next home you purchase in the state of Florida, assuming you meet the requirements. To find out more about Homestead Portability, go to our website at During 2012, homestead properties in Clay County were able to transfer an accumulated savings of over $5 million using the portability benefit, as indicated below. Jurisdiction # Parcels Total Value City of Green Cove Springs 8 $340,330 City of Keystone Heights 3 $19,325 Town of Orange Park 10 $430,330 Town of Penney Farms 0 $0 BCC 170 $4,280,315 Total 191 $5,070,300 9

13 Institutional Exemptions Institutional Exemptions Under Florida law, some real property and/or tangible personal property that is owned by a nonprofit entity may be eligible for an exemption from certain ad valorem taxes if the property is also used for the nonprofit purpose as of January 1. Some examples of institutional exemptions include: religious, charitable, scientific, literary, educational, fraternal, and homes for the aged. For more information on institutional exemptions, please visit our website at Institutional Exemptions by Taxing Authority Real Property TPP Total % of Jurisdiction Exempt Value Exempt Value Exempt Value Total Green Cove Springs $10,876,951 $365,448 $11,242, % Keystone Heights $6,977,471 $279,488 $7,256, % Orange Park $54,913,150 $4,934,287 $59,847, % Penney Farms $11,322,208 $1,047,879 $12,370, % Unincorporated $185,691,950 $6,150,095 $191,842, % Total: $269,781,730 $12,777,197 $282,558,927 10

14 Agricultural Classification Agricultural Classification Pursuant to Florida Statute s (3)(b), only lands which are used primarily for bona fide agricultural purposes shall be classified agricultural. Bona fide agricultural purposes means good faith commercial agricultural use of the land. There are approximately 412,000 acres of land in Clay County of which 36.5% were classified with an agricultural land use as of January 1, Approximately 31.9% of the acres are timber land and 3.1% are used for pasture. Agricultural Classified Land Year Parcels Acres % of Total County Land , , % , , % , , % , , % , , % , , % , , % , , % 11

15 Exemptions & Classified Use Values 2012 Exemptions and Classified Use Values Exemption Type Real Property Value Exempt TPP Value Exempt Total Value Exempt % of Total Government Exemptions $640,318,223 $273,151,959 $913,470, % Widows/Widowers Exemptions $1,669,500 $0 $1,669, % Disability Exemptions $80,095,015 $0 $80,095, % Institutional Exemptions $269,781,730 $12,777,197 $282,558, % Homestead Exemptions $2,267,367,287 $0 $2,267,367, % Other Exemptions $66,789,855 $2,980,194 $69,770, % $25,000 TPP Exemption $0 $48,110,078 $48,110, % Agricultural Classification $541,459,484 $0 $541,459, % Total Exempt & Classified Value: $3,867,481,094 $337,019,428 $4,204,500, % Homestead Exemptions 53.93% Institutional Exemptions 6.72% Other Exemptions 1.66% Disability Exemptions 1.90% Widows Exemptions 0.04% Governmental Exemptions 21.73% TPP Exemption 1.14% Agricultural Classification 12.88% 12

16 Recent Constitutional Changes Impact on 2012 Tax Roll of Recent Constitutional Changes (Amendment 1, Approved January 29, 2008) Taxing Authorities Additional $25K Homestead Exemption (1)(b), F.S. $25K Tangible Personal Property Exemption , F.S. Homestead Portability (8), F.S. 10% Assessment Growth Limitation , F.S , F.S. Total BCC-Other County Services $1,020,650,075 $49,281,604 $4,280,315 $23,024,972 $1,097,236,966 BCC-Law Enforcement $1,020,650,075 $49,281,604 $4,280,315 $23,024,972 $1,097,236,966 BCC-EMS $1,020,650,075 $49,281,604 $4,280,315 $23,024,972 $1,097,236,966 Fire Control MSTU-8 $977,223,129 $42,460,802 $3,849,985 $22,977,310 $1,046,511,226 Law Enforcement MSTU-4 $948,556,216 $39,281,863 $3,509,655 $22,752,250 $1,014,099,984 Unincorporated Services MSTU $941,627,903 $38,413,681 $3,490,230 $22,666,780 $1,006,198,594 Board of Public Instruction N/A $49,281,604 $4,280,315 N/A $53,561,919 St. Johns River Water Management District $1,020,650,076 $49,281,604 $4,280,315 $23,024,972 $1,097,236,967 City of Green Cove Springs $28,666,913 $3,178,939 $340,330 $225,060 $32,411,242 City of Keystone Heights $6,453,667 $849,795 $19,325 $78,755 $7,401,542 Town of Orange Park $43,426,946 $6,820,802 $430,330 $47,662 $50,725,740 Town of Penney Farms $474,646 $18,387 $0 $6,715 $499,748 Lake Asbury MSBD $8,574,597 $103 $65,795 $0 $8,640,495 * The values represented above indicate the accumulated and resulting loss of taxable value to each of the Taxing Authorities. 13

17 Value Clay County Property Appraiser

18 Estimating Value Estimating Value The assessment roll of Clay County is comprised of approximately 93,000 real property parcels and tangible personal property accounts, which must be reviewed annually. To ensure that all properties are assessed accurately, equitably, and efficiently, mass appraisal techniques are utilized as the primary method of valuation. The process of mass appraisal is supported by Florida Statutes s (3) which states, In revaluating property in accordance with constitutional and statutory requirements, the property appraiser may adjust the assessed value placed on any parcel or group of parcels based on mass data collected, on ratio studies prepared by an agency authorized by law, or pursuant to regulations of the Department of Revenue. Florida Statute s (1) states, the value of property must be determined by an appraisal methodology that complies with the criteria of F.S. s and professionally accepted appraisal practices. As such, the Clay County Property Appraiser s Office considers three recognized and generally accepted approaches in the development of value estimates: the cost approach, sales comparison approach, and the income capitalization approach. The applicability of each approach depends on the character of the property and the availability of market data. The 1992 Save Our Homes Amendment to the Florida Constitution, as outlined in Florida Statute s , created three separate values for every parcel: market (just) value, assessed value, and taxable value. Each will be discussed later in this report. 14

19 Real Property Real Property Physically property can be identified by two broad categories: real property and tangible personal property. Real property is the rights, interests, and benefits connected with real estate. Real estate is the physical parcel of land, improvements to the land, improvements attached to the land, and appurtenances. Tangible personal property will be discussed later in this report. The Land Records Department of this office is responsible for discovering and updating real estate parcel ownership changes through research of various recorded documents processed by the Clay County Clerk of Court. The volume of real estate transactions peaked in The number of transactions in 2011 represents a 54% decline from the peak. Year # Transactions % Change , , % , % , % , % , % , % , % , % , % , % 20,000 17,500 18,289 15,000 14,471 12,500 13,078 13,391 10,000 9,497 9,861 11,105 9,289 8,334 7,500 8,329 5, ,946 15

20 Real Property Parcels Real Property Parcels The Real Property Appraisal Department is responsible for the inspections and annual valuation estimates of real property, which is comprised of residential, commercial, industrial, and agricultural parcels. Additionally, the Real Property Appraisal Department is required to physically inspect each parcel once every five years, pursuant to Florida Statute s This helps to ensure that the assessment roll data is accurate and up to date. Real Property Parcels and Percent of Change Year # Parcels % Change , , % , % , % , % , % , % , % , % Distribution of Real Property Parcels by Municipality City/Town Real Property Percentage Green Cove Springs 3, % Keystone Heights % Orange Park 3, % Penney Farms % Unincorporated 80, % 16

21 Single Family Residential Single Family Residential Median Sale Price The median sale price of single family residences peaked in the 3 rd quarter of 2006 at $235,450. As of the 4 th quarter of 2011, the median sale price has declined approximately 34% from the peak. $240,000 $230,000 $220,000 $210,000 $200,000 $190,000 $180,000 $170,000 $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $120,850 $128,300 $137,000 $152,550 $177,000 $229,900 $211,100 $207,400 $190,500 $168,050 $160,000 $155,000 4Q Q Q Q Q Q Q Q Q Q Q Q 2011 Single Family Residential Parcel Count Year Total % Change , , % , % , % , % , % , % , % , % 17

22 Residential Condominiums Residential Condominiums Median Sale Price The median sale price of single family condominiums peaked in the 4 th quarter of 2005 at $154,900. As of the 4 th quarter of 2011, the median sale price has declined approximately 49% from the peak. $170,000 $150,000 $135,500 $154,900 $142,850 $130,000 $121,900 $119,500 $110,000 $109,450 $90,000 $79,250 $70,000 $61,000 $50,000 4Q Q Q Q Q Q Q Q 2011 Residential Condominium Parcel Count Year Total % Change , % , % , % , % , % , % , % ,418.42% 18

23 Mobile Homes Mobile Homes A mobile home may be classified as either real property or as tangible personal property. If the mobile home owner owns the land where the mobile home is located, it is considered real property and the resident owner may be eligible for a homestead exemption. If the land is rented then the mobile home is considered a motor vehicle and the attachments to the mobile home (carports, screen porch, etc.) are classified as tangible personal property. Mobile Home Parcels Year Real Property Parcels Tangible Property Parcels Total Parcels , , , , , , , , , , , , , , , , , ,779 19

24 Tangible Personal Property Tangible Personal Property Florida constitutional and statutory law charges the property appraiser with the task of valuing all property that is not immune from taxation, or otherwise expressly exempt from valuation. Federal and State property is immune; inventory, motor vehicles, vessels and aircraft are exempt. Real property is considered by general appraisal theory to be land and permanently attached fixtures. Personal property is, by default, all other property. Personal property is classified as either tangible or intangible. Tangible personal property can be touched, it has intrinsic value. Taxable tangible personal property includes equipment in commercial use that is not expressly exempt. Intangible personal property has value based on what the property represents. Stocks, bonds, mutual funds, and accounts receivable are all intangible personal property. Intangible personal property is not reported to the county property appraiser. Ad valorem taxes from the assessment of tangible personal property are levied by local taxing authorities like cities, counties, and school districts. Tangible personal property assessment relies on a self-reporting system. Taxpayers who are required to file must do so by April 1 of each year, listing the reportable property that was in place on January 1, which is the assessment date. The passage of Amendment 1 in January of 2008, established a $25,000 tangible personal property exemption. Taxpayers who file returns in a timely manner do not pay taxes on $25,000 of the assessed value of their tangible personal property. A business with less than $25,000 must file an initial return which is its application for the exemption. The following year a waiver letter will be mailed to taxpayers with values less than $25,000. Those who receive waivers will not have to file returns unless they have added property that may cause the value of the tangible personal property to exceed $25,000. A change of ownership or a change of the location of a business are events that also trigger the filing requirement. The Tangible Personal Property Department of the Clay County Property Appraiser s office maintains a standard of excellence to rival larger jurisdictions. Not only was Clay County the first jurisdiction in Florida to offer online filing of tangible personal property returns, but we continue to make use of the latest technology to make sure that the tangible personal property department is operated as efficiently as possible, while providing good service to taxpayers. 20

25 Tangible Personal Property Tangible Personal Property and Centrally Assessed Tangible Personal Property # of Market % of Taxable % of Municipality Accounts Value Total Value Total Green Cove Springs 335 $86,470, % $43,532, % Keystone Heights 130 $7,724, % $6,528, % Orange Park 659 $66,753, % $35,229, % Penny Farms 10 $2,754, % $1,686, % Unincorporated 3,911 $846,214, % $585,922, % Total 5,045 $1,009,918,086 $672,898,658 Centrally Assessed # of Market % of Taxable % of Municipality Accounts Value Total Value Total Green Cove Springs - $514, % $466, % Keystone Heights - $0 0.00% $0 0.00% Orange Park - $775, % $700, % Penny Farms - $0 0.00% $0 0.00% Unincorporated - $10,958, % $9,909, % Total 639 $12,247,928 $11,076,402 History of TPP & Centrally Assessed # of % of Market % of Taxable % of Year Accounts Change Value Change Value Change , % $1,022,166, % $683,975, % , % $1,086,145, % $686,611, % , % $987,482, % $670,935, % , % $1,076,212, % $704,942, % , % $997,950, % $684,651, % , % $921,496, % $703,436, % , % $830,488, % $630,541, % , % $778,125, % $591,408, % ,647 - $720,315,263 - $555,228,272 21

26 Market Value Market (Just) Value Pursuant to Article VII of the state Constitution and Florida Statute s , all property shall be assessed according to its market (just) value, on January 1 of each year. Additionally, Florida Statute s prescribes the factors that the property appraiser must consider in the estimation of market value. Market (just) value is commonly defined as the most probable price for a property in a competitive, open market involving a willing buyer and a willing seller, and is the major focus of ad valorem appraisal assignments. The market value is unencumbered and may increase or decrease as the market dictates. The following tables illustrate the market value history of the various taxing districts in Clay County. Tax District Board of County Commissioners Real TPP & % of New Year Property Central Asd. Total Change Construction 2012 $11,401,180,971 $1,061,338,984 $12,462,519, % $86,191, $11,807,486,646 $1,086,145,713 $12,893,632, % $86,394, $12,705,702,221 $987,482,956 $13,693,185, % $120,636, $14,139,456,637 $1,076,212,120 $15,215,668, % $217,616, $15,235,821,605 $997,950,712 $16,233,772, % $341,028, $15,529,902,833 $921,496,624 $16,451,399, % $625,403, $13,151,703,777 $830,488,507 $13,982,192, % $676,913, $10,214,009,320 $778,125,165 $10,992,134, % $408,243, $8,688,242,868 $720,315,263 $9,408,558, % $364,964, $7,532,054,613 $688,899,148 $8,220,953, % $309,514, $6,829,595,691 $654,508,234 $7,484,103,925 - $242,722,283 Tax District City of Green Cove Springs Real TPP & % of New Year Property Central Asd. Total Change Construction 2012 $425,449,477 $47,811,866 $473,261, % $2,482, $440,530,719 $47,348,437 $487,879, % $2,204, $463,695,158 $46,242,145 $509,937, % $3,637, $522,850,444 $61,400,641 $584,251, % $9,718, $582,662,021 $46,890,448 $629,552, % $19,981, $569,798,407 $52,029,019 $621,827, % $25,301, $477,048,430 $45,245,048 $522,293, % $17,472, $369,774,587 $38,573,304 $408,347, % $11,096, $318,930,862 $37,199,318 $356,130, % $16,098, $277,168,244 $34,908,885 $312,077, % $5,657, $257,825,890 $32,151,777 $289,977,667 - $5,405,647 22

27 Market Value Market (Just) Value Tax District City of Keystone Heights Real TPP & % of New Year Property Central Asd. Total Change Construction 2012 $78,535,604 $7,724,929 $86,260, % $96, $81,438,317 $7,892,911 $89,331, % $277, $89,486,982 $8,003,851 $97,490, % $50, $96,240,035 $8,083,246 $104,323, % $385, $102,361,855 $8,642,668 $111,004, % $745, $102,989,113 $8,342,929 $111,332, % $1,057, $86,126,669 $6,982,313 $93,108, % $1,179, $70,526,459 $6,878,689 $77,405, % $965, $63,069,858 $7,220,636 $70,290, % $996, $59,147,223 $8,124,581 $67,271, % $2,149, $55,930,026 $7,999,901 $63,929,927 - $267,008 Tax District Town of Orange Park Real TPP & % of New Year Property Central Asd. Total Change Construction 2012 $631,759,343 $67,528,598 $699,287, % $649, $655,558,007 $71,374,440 $726,932, % $1,995, $711,548,871 $70,531,729 $782,080, % $4,517, $811,827,427 $68,748,934 $880,576, % $15,697, $861,468,087 $68,857,282 $930,325, % $9,605, $884,009,565 $58,587,766 $942,597, % $4,922, $791,967,701 $56,449,714 $848,417, % $14,166, $667,510,628 $54,595,355 $722,105, % $3,534, $597,373,145 $52,766,063 $650,139, % $6,038, $540,668,100 $49,400,098 $590,068, % $5,011, $517,430,706 $49,203,235 $566,633,941 - $2,069,999 Tax District Town of Penney Farms Real TPP & % of New Year Property Central Asd. Total Change Construction 2012 $24,166,581 $2,754,750 $26,921, % $278, $24,615,521 $2,664,010 $27,279, % -$13, $26,063,179 $2,597,138 $28,660, % $19, $28,418,908 $2,679,060 $31,097, % $406, $29,539,718 $2,867,941 $32,407, % $403, $30,569,071 $2,479,009 $33,048, % $60, $27,522,362 $2,738,836 $30,261, % $771, $23,755,007 $2,877,688 $26,632, % $446, $20,590,700 $3,053,536 $23,644,236 - $807,635 23

28 Assessed Value Assessed Value The assessed value is the value of property after any assessment reductions, limitations, or caps have been applied. Furthermore, the assessed value is an administrative assessment created by the legislature and is not directly related to market value. Homestead and non-homestead properties may have an assessed value that is lower than market value due to the Save Our Homes cap, or the 10 percent cap provided in Amendment 1. The following chart illustrates the relationship between the market value and assessed value for a hypothetical residential property for a number of years: Example using the preceding information: A property owner received homestead exemption beginning in Year 1 with the market value (blue line) and assessed value (red line) being the same. The market values in Years 2 and 3 were significantly increased (in excess of 3%) due to the escalating real estate market. Over the same time period, the assessed value was capped at an increase of no more than 3% per year, pursuant to the Save Our Homes amendment. As a result, a non-taxed differential (SOHD) between the market value and the assessed value was created. The market values for Years 4 and 5 were reduced to reflect the declining real estate market. Although the market values were reduced, a differential (SOHD) remains. As a result, the assessed value must increase until it becomes equal to the market value. This is referred to as the recapture rule. 24

29 Save Our Homes Save Our Homes (SOH) The Florida Constitution was amended in 1992 to provide a limitation in annual increases to assessed value on residential property receiving a homestead exemption. The assessment limitation is known as Save Our Homes and limits the annual increase in assessed value to 3% (excluding any additions or improvements), or the amount of the Consumer Price Index (CPI) increase as determined by the Department of Revenue, whichever is less. Year SOH Cap Amount SOH Differential Increase/Decrease Over Previous Year % Change From Previous Year Millage Rate Saved Taxes % $292,439,069 ($142,756,012) % $4,679, % $435,195,081 ($296,940,138) % $7,032, % $732,135,219 ($650,508,784) % $11,517, % $1,382,644,003 ($664,893,403) % $21,566, % $2,047,537,406 ($648,335,987) % $30,866, % $2,695,873,393 $449,676, % $40,186, % $2,246,196,635 $1,027,240, % $38,173, % $1,218,956,255 $408,658, % $21,076, % $810,297,891 $343,430, % $14,422, % $466,867,636 $122,891, % $8,378, % $343,976,554 $33,775, % $6,247, % $310,201,360 $137,629, % $5,652, % $172,571,486 $20,008, % $3,175, % $152,563,287 $62,588, % $2,821, % $89,974,818 $38,414, % $1,655, % $51,560,684 $30,262, % $955, % $21,298,603 $18,377, % $379, % $2,921, $52,934 Total $218,772,143 25

30 10% Cap for Non-Homestead Property 10% Cap for Non-Homestead Property Approved with the passage of Amendment 1, there is a 10% cap on the assessed value for nonhomesteaded residential and non-residential properties beginning with the 2009 tax roll. The Legislature adopted several statutes to implement the 10% cap on non-homestead properties, explaining the conditions requiring the reassessment and resetting of the cap, and the required notification process when a change of ownership or control of more than 50% occurs. 10% Cap for Non-Homestead Property Units Differential Parcels with Differential Average Differential Residential 9 units or less ( )* $8,956, $11,223 Residential (10 units or more) & Non-residential ( )** $14,068, $187,584 Florida Statute s applies to non-homestead residential property with no more than 9 dwelling units and to vacant property zoned for residential uses. The 10% cap is removed when a change of ownership or control of more than 50% occurs. Florida Statute s applies to all residential properties with 10 units or more and all non-residential properties. It provides for the reassessment of the property and resetting of the 10% cap when a qualifying improvement increases the market value of the property by at least 25%. The ownership and control provisions are the same. 26

31 Taxable Value Taxable Value The taxable value equals the assessed value minus exemptions. Like the assessed value, it is not directly related to market value. The taxable value is half of the formula used to determine ad valorem property taxes. The other half is the millage rates levied by taxing authorities (taxable value x millage rate = tax levied). Example of a Property Valuation Land Value $45,300 Improvement Value $118,900 Just (Market) Value $164,200 Save Our Homes Cap -$38,650 Assessed Value: $125,550 Homestead Exemption -$50,000 Taxable Value: $75,550 27

32 Taxable Value History of Taxable Values Tax District Board of County Commissioners Real TPP & % of New Est. Taxes Year Property Central Asd. Total Change Construction Levied 2012 $7,255,105,111 $683,975,060 $7,939,080, % $69,803,242 $60,264, $7,433,115,009 $686,661,929 $8,119,776, % $72,798,111 $61,636, $7,927,912,963 $670,935,720 $8,598,848, % $106,780,125 $62,003, $8,651,740,107 $704,942,326 $9,356,682, % $170,309,041 $67,350, $9,228,586,398 $684,651,981 $9,913,238, % $290,643,795 $67,297, $10,022,961,603 $703,436,383 $10,726,397, % $608,939,580 $72,548, $8,563,523,693 $630,541,654 $9,194,065, % $650,435,343 $80,510, $6,863,145,878 $591,408,243 $7,454,554, % $391,429,628 $66,025, $5,858,552,234 $555,228,272 $6,413,780, % $346,723,939 $56,810, $5,138,178,429 $556,982,765 $5,695,161, % $288,672,812 $50,548, $4,628,433,740 $525,331,889 $5,153,765,629 - $206,631,671 $46,350,313 Tax District City of Green Cove Springs Real TPP & % of New Est. Taxes Year Property Central Asd. Total Change Construction Levied 2012 $279,219,436 $43,998,475 $323,217, % $2,140,006 $964, $286,004,221 $43,345,337 $329,349, % $2,249,588 $846, $298,803,304 $42,304,602 $341,107, % $3,289,797 $877, $335,848,657 $57,178,475 $393,027, % $8,751,749 $1,010, $369,388,998 $42,653,549 $412,042, % $10,787,582 $1,059, $383,324,672 $51,371,098 $434,695, % $24,703,622 $1,118, $317,678,877 $44,571,193 $362,250, % $14,246,919 $942, $252,603,341 $37,971,273 $290,574, % $10,299,523 $758, $216,501,108 $36,640,109 $253,141, % $15,115,105 $661, $187,261,180 $34,433,444 $221,694, % $5,122,431 $579, $173,501,281 $31,676,723 $205,178,004 - $5,191,771 $536,490 Tax District City of Keystone Heights Real TPP & % of New Est. Taxes Year Property Central Asd. Total Change Construction Levied 2012 $44,094,510 $6,528,030 $50,622, % $49,292 $128, $45,340,556 $6,751,569 $52,092, % $208,603 $128, $48,822,122 $6,795,298 $55,617, % $44,060 $130, $51,429,327 $6,800,572 $58,229, % $304,040 $134, $53,692,941 $7,303,136 $60,996, % $682,213 $122, $58,845,636 $8,069,674 $66,915, % $930,056 $128, $50,559,779 $6,688,463 $57,248, % $1,066,101 $114, $41,850,000 $6,623,637 $48,473, % $883,675 $97, $36,654,967 $6,949,220 $43,604, % $813,486 $87, $33,803,700 $7,836,594 $41,640, % $297,741 $83, $32,086,835 $7,697,738 $39,784,573 - $254,628 $76,619 28

33 Taxable Value History of Taxable Values Tax District Town of Orange Park Real TPP & % of New Est. Taxes Year Property Central Asd. Total Change Construction Levied 2012 $419,367,677 $35,930,192 $455,297, % $364,108 $2,870, $429,102,125 $39,616,099 $468,718, % $491,652 $2,954, $459,222,228 $39,391,319 $498,613, % $2,629,166 $3,142, $502,841,333 $38,582,589 $541,423, % $15,421,708 $3,141, $512,113,988 $34,678,403 $546,792, % $9,333,207 $3,173, $548,004,016 $40,281,478 $588,285, % $4,737,256 $2,883, $480,846,740 $39,284,787 $520,131, % $11,422,984 $2,605, $425,567,970 $39,275,177 $464,843, % $3,085,265 $2,327, $379,214,932 $41,287,471 $420,502, % $2,574,394 $2,104, $354,264,481 $41,693,539 $395,958, % $4,277,506 $1,981, $337,114,276 $42,900,245 $380,014,521 - $2,045,581 $1,901,706 Tax District Town of Penney Farms Real TPP & % of New Year Property Central Asd. Total Change Construction 2012 $9,070,341 $1,686,916 $10,757, % $248, $8,798,810 $1,632,627 $10,431, % $10, $9,139,051 $1,610,185 $10,749, % $19, $10,030,983 $1,688,608 $11,719, % $383, $10,594,000 $1,669,970 $12,263, % $315, $11,556,547 $1,077,536 $12,634, % $60, $9,750,395 $1,056,330 $10,806, % $618, $7,163,853 $1,142,069 $8,305, % $413, $6,170,305 $1,137,438 $7,307,743 - $755,351 29

34 Top 10 Taxpayers Top Ten Taxpayers Clay County, Florida Name Real Property TPP Total Taxable Value % of Total Taxable Value Clay Electric Co-op Inc $9,337,853 $155,382,874 $164,720, % Simon Property Group LP $98,565,567 $594,408 $99,159, % Orange Park Medical Center $30,215,856 $22,161,286 $52,377, % TECO Pipeline Holding Co. LLC $0 $42,466,622 $42,466, % AT & T Property Tax Group- Southeast $7,550,000 $34,046,381 $41,596, % Wal-Mart Stores East LP $34,065,641 $6,943,071 $41,008, % Mid-America Apartments L P $31,500,000 $81,927 $31,581, % Blue Cross Blue Shield Florida $6,000,000 $20,453,614 $26,453, % Florida Power & Light Company $1,694,409 $22,757,800 $24,452, % E I Du Pont De Nemours & Co $1,349,241 $23,007,417 $24,356, % Total: $220,278,567 $327,895,400 $548,173, % * Data taken from the st Final Assessment Roll for the Board of County Commissioners 30

35 Real Property Parcels and Values 2012 Real Property Parcels and Values Allocation Property Type Parcel Count Market Value Taxable Value % of Total Taxable Value Residential (Improved & Vacant) 66,542 $7,441,845,854 $5,004,637, % Mobile Homes 9,575 $486,174,770 $261,683, % Multi-Family 367 $240,884,573 $236,015, % Condominiums 2,418 $141,333,366 $105,491, % Retirement Homes & Misc. Residential 1,370 $69,766,607 $67,688, % Commercial/Industrial (Improved & Vacant) 2,409 $1,365,864,012 $1,341,671, % Agricultural/Conservation 1,465 $599,342,026 $71,924, % Institutional 460 $354,188,448 $98,465, % Government 779 $626,641,291 $1,489, % Miscellaneous 2,838 $23,535,482 $14,894, % Non-Agricultural Acreage 313 $51,604,542 $51,144, % Total Market Value: $11,401,180,971 Total Taxable Value: $7,255,105,111 Taxable Value by Percentage Single Family Residential 74.05% Multi-Family 3.25% Commercial/ Industrial 20.12% Other 0.21% Institutional 1.36% Governmental 0.02% Agricultural 0.99% 31

36 Permit Activity Permit Activity According to the Clay County Building Department, permit activity for new single family homes and mobile homes peaked in At the conclusion of 2011, permit activity had declined approximately 86% from the peak. New construction taxable value peaked at $650 million in Taxable value of new construction in 2011 was $72 million, an 89% decline from the peak. % Year Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total Change , , % , % , % , % , % , % % % % % % Source: Clay County Building Department ,045 3, ,026 2,254 2,531 2,821 1,

37 Taxing Authorities Clay County Property Appraiser

38 Taxing Authorities and Millage Rates Taxing Authorities and Millage Rates On an annual basis, each taxing authority establishes a millage rate by dividing the proposed budget by the taxable value less the value of new construction. The millage rate is then multiplied by the taxable value of each property located within the taxing district. The revenues generated are used to support the local services provided by each of the taxing authorities. Each year the newly proposed millage rates are published on the Truth in Millage (TRIM) Notice sent to property owners during the month of August. It is important to review the TRIM Notice since it provides details about the proposed millage rates, the new appraised values, and exemption information. The TRIM Notice provides the date, time and place of the taxing authority s budget hearing as well as contact information. The millage rate history for the taxing authorities are listed below. Taxing Authority BCC-Other County Services BCC-Law Enforcement BCC-EMS Fire Control MSTU Law Enforcement MSTU Unincorporated Services MSTU Total Combined School Board SJRWMD Total Unincorporated Area City of Green Cove Springs Total Town of Orange Park Total City of Keystone Heights Total Lake Asbury MSBD Total Town of Penney Farms Total Note: One mill equals $1 per $1,000 (.001). For example, a tax rate of mills is % of Taxable Value. (Calculation: is multiplied by the Taxable Value of the property to determine the ad valorem tax.) 33

39 Taxes : Where Your Money Goes Taxing Authorities Tax District Code Description Full Description 001 BCC-Other County Services Board of County Commissioners - Other County Services 001 BCC-Law Enforcement Board of County Commissioners - Law Enforcement 001 BCC-EMS Board of County Commissioners - Emergency Services 001 Fire Control MSTU-8 Fire Control Municipal Service Taxing Unit Law Enforcement MSTU-4 Law Enforcement Municipal Service Taxing Unit Unincorp Services MSTU Unincorporated Services Municipal Service Taxing Unit School RLE School Local Board SJRWMD School Required Local Effort School Discretionary and Capital Outlay St Johns River Water Management District 002 Green Cove Springs City of Green Cove Springs 003 Keystone Heights City of Keystone Heights 007 Keystone Heights CRA Keystone Heights Community Redevelopment Agency 004 Orange Park Town of Orange Park 005 Penney Farms Town of Penney Farms 006 Lake Asbury (Water) Lake Asbury Municipal Service Benefit District Where Does My 2012 Tax Dollar Go? SJRWMD 2.1% BCC - Other Svcs. 2.3% School Board 48.9% BCC - Law Enforcement 21.3% Law Enforce. MSTU % BCC - EMS 7.5% Fire Control MSTU-8 3% Unincorp. Svcs. MSTU 1.2% * Distribution of 2012 ad valorem taxes levied for county wide services 34

40 BCC and MSTU Taxing Authorities Breakdown of BCC and MSTU Taxing Authorities Taxing Authority Services Provided Where Excludes Taxing Authority Codes Included MSTU Fire Control MSTU-8 Non-Countywide OP 001, 002, 003, 005, 006 MSTU MSTU BCC Law Enforcement MSTU-4 Non-Countywide GCS, OP 001, 003, 005, 006 Unincorporated Services MSTU Unincorporated GCS, OP, PF, KH 001, 006 BCC - Law Enforcement County-wide 001, 002, 003, 004, 005, 006 BCC BCC - EMS County-wide 001, 002, 003, 004, 005, 006 BCC Other County Services County-wide 001, 002, 003, 004, 005, 006 Not all of the Taxing Authorities take advantage of the county services offered. Some of the cities and towns have their own Fire Department, Law Enforcement and special services. Since this information was not consistent across the board, it was necessary to develop the spreadsheet above. Hopefully, this will help to explain the necessity of the different millage rates and the application of each. 35

41 City of Green Cove Springs Taxing District 002 City of Green Cove Springs 36

42 Town of Orange Park Taxing District 004 Town of Orange Park 37

43 Town of Penney Farms Taxing District 005 Town of Penney Farms 38

44 City of Keystone Heights Taxing District 003 City of Keystone Heights 39

45 Redevelopment Areas Redevelopment Areas The Community Redevelopment Act of 1969 was created by the State Legislature so that county and municipal governments could address the deteriorating and adverse conditions of specific communities and neighborhoods. It allows the local government to designate a Community Redevelopment Area (CRA) if that area meets certain criteria such as the presence of substandard or inadequate structures, a shortage of affordable housing, inadequate infrastructure, or inadequate parking or roadways. The purpose of a CRA is to allow a portion of the tax dollars to be used specifically for redevelopment purposes in the designated area. Funding of these projects begins with Tax Increment Financing (TIF), which is a method for leveraging public dollars to stimulate private investment in the CRA district. The dollar value of all property in the CRA is determined as of a given date and frozen. All tax revenues generated from any increases in real property values (over the frozen value) are used for redevelopment efforts in the CRA district. 40

46 Redevelopment Districts Redevelopment Districts There are over 130 CRAs in Florida. One is located in Clay County: Keystone Heights (started in 2005). By design, CRAs are long-term tools and may be in place for up to 30 years. 41