Broward County residents are grappling with significant property tax increases, fueled by rising property values and reassessments following renovations. This surge is placing a considerable financial burden on homeowners, prompting calls for reform and a closer look at the county’s financial oversight.
Rising Property Values and Tax Burdens
Florida’s property tax rates, often referred to as millage rates, are a significant consideration for homeowners. In Broward County, the average property tax rate is 19.8427, meaning a $300,000 home incurs approximately $5,952.81 in annual property taxes. This rate places Broward County among the higher counties in Florida for property taxes. Recent data indicates a 9.2% increase in taxable property values across Broward County, continuing a trend of rising values that directly impacts tax bills.
- Key Takeaways:
- Broward County’s property tax rate is above the state average.
- Rising property values are leading to higher tax bills for residents.
- Recent renovations can trigger full property reassessments, significantly increasing taxes.
The Impact of Renovations and Reassessments
A stark example of the impact of renovations on property taxes is the case of Walter and Debbie Priebe in Pompano Beach. After undertaking extensive renovations on their home, including adding a second story, their annual property taxes surged from $15,000 to over $90,000. This dramatic increase was due to the renovation triggering a full reassessment of their property, removing previous protections like the Save Our Homes cap. This situation highlights how substantial improvements can lead to a property being treated as new construction, subject to current market values.
Factors Contributing to Tax Hikes
Several factors are contributing to the escalating property tax concerns in Broward County. The influx of out-of-state buyers, often paying cash, has driven up home prices significantly. These higher market values, even for long-time homeowners, are factored into property assessments. While rising property values can increase equity, they also lead to higher tax liabilities, which can become unaffordable. The Save Our Homes cap in Florida limits annual increases in assessed value for homesteaded properties to 3% or the CPI, whichever is lower. However, this protection can be lost upon substantial improvement or sale of the property, leaving new owners or those who have renovated vulnerable to market-rate assessments.
Seeking Relief and Future Outlook
Homeowners facing these escalating tax bills are seeking relief. The Broward County Property Appraiser’s office advises residents to check their property values online and to reach out to the office if they believe their assessed value is too high. Appeals can also be filed with the county’s value adjustment board. The situation has also drawn attention from state officials, with discussions around property tax reform and potential elimination of property taxes altogether. However, such changes face significant challenges, as property taxes are a primary revenue source for local governments funding essential services. The current trend suggests that property tax affordability will remain a critical issue for Broward County residents in the near future.
Sources
- Florida Counties with the Highest and Lowest Property Tax Rates, Florida for Boomers.
- Property values are up again. What does that mean for your tax bill? – NBC 6 South Florida, NBC 6 South Florida.
- My property tax went from $15K to a life-altering $91K a year, New York Post.