From 2022 to 2024, Jacksonville ranked second in the nation in a comparison of property taxes outclimbing home values, according to one analysis.
The comparison is relevant with a measure on the ballot to provide property tax relief, but there is a caveat. In the previousfive-year period the reverse was true – home values outpaced taxes.
Property taxes for the typical Jacksonville metro area homeowner rose 21.7% between 2022 and 2024, while home values only grew 8.1%, according to Consumer Affairs. But from 2019 to 2024, home values rose 63.1%, well ahead of the 44.9% increase in property taxes.
Consumer Affairs said, “Local housing data can help explain the shift. Home values in the Jacksonville metro area jumped by double digits in both 2021 and 2022. Then, in 2023, home value growth slowed sharply as mortgage rates climbed to around 7% for a 30-year loan, according to a U.S. Department of Housing and Urban Development analysis of the local market. That cooling lines up with the slower pace of home value growth reflected in census figures over the same stretch.”
Another point in favor of tax relief is that property taxes are inherently unfair. They tax people, in effect, for unrealized capital gains, and they charge people unequally for the same services.
Property taxes are the main source of revenue for local governments. Many states, including Florida, rely on the sales tax. The federal government’s main source is the income tax.
Amendment 3 would raise the homestead exemption, which means the basis for the property tax would be reduced. When fully phased in, the measure would reduce the taxable value of a $500,000 home to $250,000 for example. Multiplying the taxable value by the tax rate set by the City Council determines the tax bill a homeowner pays.
According to Florida TaxWatch, approval of the amendment would mean savings for Jacksonville homeowners getting the full exemption of $1,121 in 2027 and $2,258 in 2028, if the tax rate is not increased.
Hay, that is not.
A home is the single largest investment most people have. If its value is eaten away by taxes and inflation it deals a serious blow to your net worth.
Politicians who don’t want to do the grunt work of limiting spending increases are opposed to the amendment. Spending Other People’s Money, it appears, is easier than not spending it.
