Quote:
Originally Posted by RL Lemke
The assessed value is a function of fair market value, regardless of how development is financed. Then, after the county assessor determines the total value county wide, the cost of government is apportioned.
When I vote on tax rates, we apportion for debt and M&O separately. If you look at the property tax invoices in the three counties you will see a number of separate apportionments. Everything from schools, stormwater, trash, city operations, county operations, etc…
So, what one pays the county in Florida for a single family home is 85% of fair market value, less exemptions, times the total of the millage rates. Any bond balance tied to a parcel has no impact. The fair market value of a home in The Villages doesn’t appear to be influenced by bond balance. Home sales prices seem far more influenced by location, size, condition and decorating.
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Where did you get your 85% number. When I look at my Sumter County property tax bill the assessed value is derived directly from the Market Value with no 85% factor involved.
My home originally sold for $289K with a $21K bond. The first year the fair market value was listed by the assessor as $273K. If the cost of the infrastructure was not collected through the bond then it would have been added to the price of the house - the developer was going to recover those costs one way or another. So instead of $289K, the initial purchase price of my home would have been $310K. Are you suggesting that the manner in which the infrastructure is financed does not factor into the assessor's determinations and the fair market value of my home would still have been $273K even though it sold for almost $40K more?
There have been several threads over the years on whether an owner should pay off the bond and whether that amount could be recovered in the next sale. The fair market value of a home here is rarely affected by the bond balance. Buyers are willing to accept the bond balance but are rarely willing to pay a premium on a home without a bond.
If the bond was included in the initial price of the home then the market value of all homes would be higher than they are now. Because we have the bond separate from the price of the home, the market values are lower. (the alternative is the homes are initially priced as if the bond was included and that amount becomes extra profit for the Developer)