(FAIRHOPE, Ala.) You will probably be paying less on property taxes, but that means, the value of your home is also going down. The effects of lower property taxes trickle down as area schools and organizations that benefit from the tax revenue will also miss the money.
If you're a homeowner your home is now roughly worth what it was worth back in 2005. Schools, cities and the county are dealing with the same disparity.
"Well the county government and the city governments, schools, fire departments they all receive a share," said Teddy Faust, Revenue Commissioner for Baldwin County.
With an average figure of taxes collected down by 5 percent over last year Faust point to 2005 as the breaking point .
"Housing prices, condo prices all began to fall we started seeing all the foreclosures so its just been an economic cycle," said Faust. The decline in revenue affects us all, the county school system will see a shortfall of $2 million compared to last year.
"We can't continue to live on slim and none that's what we've been living on we have got to pass the penny tax in November just to survive," said Terry Wilhite spokesperson for the Baldwin County School System.
Municipalities will have less in their general funds, money used to pay for police and fire protection. County officials saw the decrease coming and planned for it. We asked County Commission Chair Bob James if there would be any cuts coming when it comes to the county?
"We have been able to maintain the level of service and in some ways we have improved it. We've simplified and saved costs in the process, " said James.
County coffers will see close to $2 million less as well. Those who watch the tax situation closely say this is hopefully the bottom of the cycle as the housing market begins to improve.
"We are seeing more homes being built, bottom line more taxable items," said Faust.