Bigger collections
Cary Glickstein said those extra dollars are being put to good use in his city.
During his five years as mayor, the city has invested in adding police protection and improving aging roads, wastewater pipes and other infrastructure, he said.
“I’ve never had someone come up to me and say, ‘Geez, our taxes are just too high,’ ” Glickstein said. “People are reasonably comfortable with the delivery of service, and they are getting a return on investment that is acceptable.”
When property values are on the rise, tax increases can sail through under the radar.
A homeowner’s tax bill is based on a combination of the rate and the property value.
If property values increase — as they have for six years in Palm Beach County — tax bills go up even if the rate stays the same.
Fred Schiebl, co-founder of the Palm Beach County Taxpayer Action Board, said the budget process gets much more attention when the economy is doing poorly. Schiebl, co-founder of the Palm Beach County Taxpayer Action Board, said the budget process gets much more attention when the economy is doing poorly.
“When you have an improving economy and your investments are doing good, you don’t think about it as much,” he said. “Government officials know that, and they try to take advantage of weak opposition.”
For the seventh year, the Palm Beach County Commission held its property tax rate at the same level, which will generate about $55 million in additional revenue. The tax increase passed with little opposition and limited discussion.
The extra funds are being used to add 15 deputies to road patrol, address the opioid epidemic and purchase land for preservation. County employees will receive a 3 percent raise. Cary Glickstein, mayor, Delray Beach
All of the South County cities approved tax increases.
Boca Raton’s and Delray’s rates are up 4 percent, while Boynton Beach’s rate is up 6 percent.
Cities are using the extra dollars to hire more police officers and firefighters, upgrade sewage and wastewater systems, improve parks and repave roads.
That’s key if communities want to attract businesses, visitors and new residents, said Richard Radcliffe, executive director of the Palm Beach County League of Cities.
“When people come to visit and they are looking at the area and the roads are falling apart, that’s an indicator,” he said. “It’s very important for attracting businesses and also tourists.”
Taxpayers will also spend more in sales tax this year.
On Jan. 1, a voter-approved sales tax increase took effect, which raises the rate from 6 cents per dollar to 7 cents. That’s expected to generate $2.7 billion over the next decade for improvements to schools, roads, bridges and drainage.
The impact will vary for residents based on how much they spend and how much shopping they do in Palm Beach County. An Internal Revenue Service calculator estimates that someone making about $50,000 will spend an additional $111 in sales tax in a year as a result of the increase.
Palm Beach County Mayor Paulette Burdick said those dollars are already being put to use.
Commissioners have approved six repaving and drainage projects this year that will be covered by sales tax dollars, she said.
Even though cities are getting more in sales tax revenue, those dollars can’t be used to hire needed personnel or fund their operating budget, Glickstein said. The funds can only be used to improve roads, bridges, drainage and other infrastructure, he said.
Next year, voters will decide whether to approve an extra homestead exemption that could lower their property tax bill.
The average homeowner would see a savings of about $230.
But city and county officials say it would devastate their budgets.
Palm Beach County would lose about $25 million, meaning cutbacks to services, officials said.
State legislators voted to put the tax break on the ballot, but they won’t have to deal with the consequences, Glickstein said.
“It was a shortsighted decision from Tallahassee that doesn’t understand local government’s needs,” he said.
sswisher@sunsentinel.com, 561-243-6634 or @SkylerSwisher