The first recorded levying of real estate taxes was around 6000 BC in the city-state of Lagash located in modern day Iraq . Both real and personal taxes were levied and collected in ancient Greece and Egypt. Alexander the Great codified tax collection across his empire as did the Romans. Perhaps the most famous tax collector of ancient times was St. Matthew.
King John in England was forced to sign the Magna Carta in part by his confiscatory tax policy. The first time property taxes were collected in Colonial America was at Plymouth beginning in 1620…the year they landed. Instructions for the collection of taxes had been given to Governor Yeardley by the Virginia Company for the Jamestown settlement in 1618 but none were collected until much later. Taxes during the later colonial period were voted on by the colonies’ own legislatures as well as being imposed by far away London. Those London-imposed taxes resulted in our fight for independence.
Though a national property tax was debated at the constitutional convention, it did not gain traction because of the large land-owning southern gentry. Property taxes became the province of the states while tariffs financed the federal government until the 20th century with the passage of the 16th Amendment in 1913 instituting the income tax. Every state does not have an income tax but every state has a real estate tax. Florida ranks 27th in the nation with its real estate tax assessments according to “Wallet Hub”.
Stuart’s projected revenue for fiscal year 2017 is $22,900,000 of which $8,060,000 come from real estate taxes. The real estate tax amount projected is 35% of total revenue and is evenly divided between residential and commercial properties. Of the 17.5% that is collected from homeowners, the vast majority is being collected from those whose properties are valued at more than $500,000. The taxable valuation for the real property in the city is currently $1.75 billion which is substantially below the market high in 2007 when the taxable value was $2.35 billion and the amount collected was $10,160,000 in real estate taxes. Ten years later, the amount of revenue that Stuart receives from real estate taxes is still much less than we did at the peak.
Florida is one of 46 states that offer a “homestead exemption” of some sort. Our exemption has been in the Florida Constitution since 1935. If you go to the Martin County Appraiser’s website, you will see that there are 15 other possible tax exemptions not to mention “save our homes” and the 3% cap on homesteaded properties. The legislature has provided many goodies to the voters but with no consequences to the state budget.
Another name for real estate taxes are “ad valorem” taxes which is Latin for according to value. Property taxes were never meant to be implemented like an income tax. You paid tax not according to how long you lived in the home or whether you were disabled or a widow. Only the value of the property was taken into account when applying the rate.
For political reasons, the state has decided that local government should have its hands tied with the only tax that can be levied without legislative approval. To curry favor, legislators have proposed constitutional amendments that have been approved by the voters year after year. We all want to pay less in tax. However, fewer and fewer people are actually contributing to the income needed to provide for local services such as police and parks.
Unlike the federal government, Stuart cannot spend more than it collects in revenue. It cannot have a deficit. Being fiscally conservative does not always mean cutting taxes. Equally important is the ability to deliver services in a fiscally competent way. As we know, the legislature promises tax cuts in the tens of millions. What those tax cuts often translate to is a few dollars returned to the average citizen. It also means less money for the environment and schools or the elimination of programs for seniors.
I believe we have a good quality of life in Stuart. Police and Fire/Rescue are important and need to be maintained. The quality of our parks and the programs provided are equally important. The same goes for our septic to sewer conversions. Each department needs to run efficiently and not waste tax payer money. All taxes should be kept to a minimum; being a prudent commissioner demands that I do just that.