Report: Tax rates, business success seem unrelated

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Florida’s property tax rates seem to have no relation at all to the business climate in a given area, a new newspaper analysis has found, although economist caution that it is only based on one year of data. An analysis of property tax rates and business revenue across Florida by the Sarasota Herald-Tribune via The News Service of Florida found the economies in counties that raised property tax rates had about the same amount of success or failure as those in counties where rates stayed the same. The story, published Sunday, found that two of the counties experiencing a big boom for local businesses, Miami-Dade and Collier, also saw some of the largest property tax rate increases in the state. Sales by businesses in Miami-Dade still jumped 9 percent, while sales by businesses in Collier County were up 10 percent. Still, in other counties, the corelation was the opposite. In St. Lucie County, for example, which did raise taxes, the economy faltered. The analysis did point out that the increase in tax rates is offset somewhat by declining taxable values. Many counties in Florida have seen enormous drops in the assessed value of property, in some cases as much as 30 percent.

Peter Schorsch is the President of Extensive Enterprises and is the publisher of some of Florida’s most influential new media websites, including SaintPetersBlog.com, FloridaPolitics.com, ContextFlorida.com, and Sunburn, the morning read of what’s hot in Florida politics. SaintPetersBlog has for three years running been ranked by the Washington Post as the best state-based blog in Florida. In addition to his publishing efforts, Peter is a political consultant to several of the state’s largest governmental affairs and public relations firms. Peter lives in St. Petersburg with his wife, Michelle, and their daughter, Ella.