Jacksonville City Council agrees with Mayor Deegan on no change in property tax rate

Jacksonville City Council unanimously agreed Tuesday with Mayor Donna Deegan that the city's property tax rate should stay the same for this year's tax bills, meaning property-owners will generally see a bump in what they owe the city because their homes and businesses are worth more for tax purposes.

The City Council slightly lowered the property tax rate by 1% last year at the request of Lenny Curry in the final budget he proposed as mayor. Then as now, the city was benefitting from sizzling growth in the city's tax base because of the hot real estate market and new construction. But this year, no council member sought to lower the tax rate.

City Council still could alter the tax rate when it take a final vote in September on the 2023-24 budget, but typically, the tentative rate is what sticks.

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Even with the tax rate staying the same, property-owners are likely to pay more for their city property taxes. The state Save Our Homes law will limit the increase in taxable property values for owner-occupied homes to no more than 3%. Another state limit for non-homestead property will cap the increase at 10%.

The city's property tax rate will once again be about $11.32 per $1,000 of taxable property value for areas excluding the three Beaches cities and Baldwin, which each will make their own decisions affecting the tax rates for property within their city limits.

The owner of a home that was valued at $150,000 for tax purposes and qualified for a $50,000 homestead exemption got a city of Jacksonville tax bill in 2022 for $1,132. After a 3% bump in assessed value for that home, the owner would pay $1,166 in city property taxes with no change in the tax rate.

Rollback rate would have slashed the tax rate by about 9%

The rollback rate, which is the tax rate that would collect the same amount of property taxes as last year with adjustments for new construction, is about $10.35 per $1,000 this year. If the city had rolled back the tax rate to that amount, the rate would have been almost 9% less than the rate favored by Deegan and City Council.

While the city is experiencing big gains in tax revenue, it also faces some large spending choices on the horizon.

Deegan is gearing up to begin negotiations with the Jaguars over extensive renovations to the city-owned TIAA Bank Field where the Jaguars play. The Jaguars have proposed a framework for a total of $2 billion in stadium improvements and development on land outside the stadium. The team has said owner Shad Khan and the city could split the total cost, which would be $1 billion apiece.

The city has not yet put forward its own proposal for the stadium.

In addition to the large price tag for the stadium, the possible construction of a new jail and police administration building also will get consideration when a special City Council committee does a year-long study. That would cost several hundred million dollars.

Deegan has said she wants to make the city more resilient against the impact of climate change, calling it the "issue of our time and essential to our success." She also will move for investments in older neighborhoods that have been left behind compared to the overall gains experienced by Jacksonville over the past half century.

The Duval County School Board, the St. Johns River Water Management District and the Florida Inland Navigation District also levy property taxes that will factor into the total tax bill paid by Jacksonville property-owners.

This article originally appeared on Florida Times-Union: Jacksonville will have the same property tax rate