Broward County residents are grappling with a significant surge in property taxes, leaving many long-time homeowners struggling to afford their homes. A combination of market dynamics, including increased demand from out-of-state buyers and a loophole in property assessment laws following renovations, has led to a dramatic increase in tax burdens.
Key Takeaways
- Renovations can trigger full property reassessments, nullifying homestead and Save Our Homes protections.
- A surge in all-cash offers from out-of-state buyers is driving up property values and subsequent tax assessments.
- Broward County’s property tax rate places it among the higher counties in Florida.
- Calls for property tax reform are growing, with some advocating for significant changes to the system.
The Renovation Reassessment Trap
For homeowners like Walter and Debbie Priebe of Pompano Beach, a seemingly sensible renovation project turned into a financial nightmare. After investing in necessary repairs and upgrades to their home, which they had owned since 2002, their annual property taxes jumped from $15,000 to over $90,000. This drastic increase was due to the renovation triggering a full reassessment of their property’s value. Under Florida law, substantial improvements can lead to a property being treated as new construction, effectively resetting its assessed value to current market rates and removing protections like the Save Our Homes cap.
Market Forces Driving Up Values
The Priebes’ situation is exacerbated by broader market trends. The influx of out-of-state buyers, often paying with all-cash offers, has significantly inflated home prices in Broward County. These cash sales, even if above asking price, are factored into property assessments. Data shows a substantial increase in all-cash transactions in the area, contributing to a competitive market where rising home values translate directly into higher property tax bills for homeowners.
Broward County’s Tax Landscape
Broward County’s property tax rate stands at 19.8427, placing it as the third-highest in Florida according to recent data. This means a home assessed at $300,000 would incur approximately $5,952.81 in property taxes. While Florida offers homestead exemptions to reduce taxable value, the escalating market values and reassessment policies are creating an affordability crisis for many.
Calls for Reform
The growing burden of property taxes has prompted calls for reform. Governor Ron DeSantis has expressed support for property tax relief, even suggesting the elimination of property taxes altogether, though such a drastic measure faces significant opposition due to its impact on local government funding for essential services. For homeowners like the Priebes, the urgency for relief is paramount as they face the potential loss of their homes due to unaffordable tax obligations.
Sources
- My property tax went from $15K to a life-altering $91K a year, New York Post.
- Florida Counties with the Highest and Lowest Property Tax Rates, Florida for Boomers.
- Florida DOGE flags Broward’s property tax hike in push for financial review, The Business Journals.