In Florida this year, tax bills will bring inflation to many real estate owners.
Rising inflation means that the tax notice’s home valuation cap, scheduled for August, will be raised ahead of the final bill, which expires this fall.
The state cap on valuation increases protects existing homeowners from seeing tax invoices spike when the real estate market is hot. It limits the rise in taxable prices for primary homes, regardless of how rapidly home prices are rising.
Its cap is fixed at inflation, which in recent years meant a limit of 2% or less.
When inflation reached 7% at the end of 2021, Florida’s 2022 taxable home price hike was capped at 3% of its maximum allowance. This is more than double the 1.4% cap last year.
Higher caps could increase tax payments for typical South Florida homeowners by hundreds of dollars, according to a Miami Herald analysis of the 2021 tax report.
According to the Miami-Dade Real Estate Appraisal Office, a high cap in Miami means an extra $ 89 if last year’s average tax was valued at the city’s average of $ 262,000.
In Fort Lauderdale, last year’s 3% cap means adding $ 118 to the average home property tax claim of about $ 430,000, according to data released by the Broward County Real Estate Appraisal Office. was doing.
The city’s average bill was about $ 6,700 last year, but if the value is allowed to increase the maximum rate of primary homes by 3%, it will be over $ 6,800.
The graph below shows a Herald analysis of other municipalities throughout South Florida. The calculation is based on the average rating of the main residences of each municipality.
Two notes on the chart:
▪ ▪ The Miami-Dade Chart omits two municipalities, Golden Beach and the wealthy excursions of Indian Creek Village. The value of assets is so high in these small municipalities that including them distorts the scale of the graph.
▪ ▪ Broward County has two tax districts for public hospitals. One is in the north of the county and the other is in the south. If a city falls into both districts, these are designated by (NH) and (SH).