Is growth pushing tax boosts?

By MARK LANE
Published 20 June, 2007
Daytona Beach News-Journal

One of the more interesting documents generated by the Legislature during this past special session was a ranking of which counties and cities raised taxes the most and the least.

This was important to know because under the tax-relief plan, the cities and counties that increased their per-capita tax levies the most would get their property-tax rate cut the most. And cities and counties that increased their property taxes the least would not have to cut.

And this was good information to have out there. The actions of local governments have been painted with a very broad brush in Tallahassee over the past few weeks. In fact, painted with something that looked rather like a broom. In fact, there was quite a big range in local taxation. From Southwest Ranches in Broward (population 7,447), which cut taxes 18 percent a year between 2001 and 2006, to Briny Breezes in Palm Beach County (population 417), which raised taxes 39.1 percent a year.

(Don't feel bad for Briny Breezes taxpayers: The whole trailer-park town was sold to a developer this year and each of the residents got more than $1 million.)

In Volusia County, according to the Legislature's numbers, one town raised its taxes less than 1 percent a year since 2001, or 10.77 percent below the state average. Hold-the-line honors here goes to Pierson. Congratulations, you're the only place in the county that won't suffer state-mandated rate cuts. Not so coincidentally, Pierson also is the slowest growing of Volusia's towns and cities. It lost population between 2004 and 2005 and gained only 1.4 percent between the 2000 census and 2005. (The most recent range available from the University of Florida Bureau of Economic and Business Research.)

It's a lot easier to hold the line on spending when people aren't lining up demanding new roads, new fire stations and lots of new stuff in general. At the other end of things, look at Flagler County. In recent years, it has been the fastest-growing county in Florida and in most years since 2000, the fastest in the nation. It grew in population by more than half again between 2000 and 2005 -- 57.8 percent.

It also ranked fifth among Florida's 67 counties in per capita tax increases. Surprise! Across the state, fast-growth counties raised taxes a lot. Slow-growth counties raised taxes a little.

In the 10 counties with the smallest increase in taxes between 2001-2006, the population between 2000-2005 grew by a tepid average of 7.4 percent a year. Well below the state average of 12.1 percent.

In the 10 counties with the biggest increase in taxes between 2001-2006, the population grew by a mind-blowing average of 23.9 percent a year. Just under twice the state average.

Angry taxpayers often ascribe tax increases to greed, corruption and maladministration. And while there's certainly enough of that to go around in the Sunshine State, there's a good argument that runaway growth is a major force driving up city and county budgets all around the state.

Turning rural land into suburban land, and turning the countryside into subdivisions full of people demanding urban services is not a cheap process. Growth doesn't pay for itself. And by the time tax reform is finished, it might pay even less than before.

Contact Mark Lane here.