"taxable property values in Volusia and Flagler counties will tumble by double digits this year for the first time in memory, according to early projections released Monday by county property appraisers. "The taxable values, which reflect the 2008 market, are expected to drop by 18.1 percent countywide in Volusia County and 16.6 percent in Flagler County.
"The steep declines set the stage for difficult budget negotiations for cities, counties and other taxing authorities.
"For one thing, they leave the homeowners who have benefited most from the state's tax system among the most vulnerable to increases if local governments decide to avoid drastic spending cuts by raising tax rates.
"That's because for years while property values soared, owners with a homestead exemption saw little in the way of tax increases because of the state's Save Our Homes cap on annual assessed value increases.
"Many of those houses still have assessed values that are below their just, or market, value. So now that the market is in decline, state Department of Revenue rules help close the difference in those cases. They call for an increase this year in assessments of 0.1 percent -- leaving the homesteads to feel the brunt of any tax rate increases.
"Volusia County Chairman Frank Bruno said he realized that some beneficiaries of Save Our Homes could face tax increases if the county sets a tax rate that would bring in the same revenue as this year. But that's likely the responsible thing to do in order to provide the services people count on, he indicated.
"Bruno conceded the County Council likely might 'tick off everybody' with any decision.
"'We try to do the right thing all the time in balancing the needs of the public and let people know what it costs to meet those needs of the public," he said."
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