Broward County homeowners are grappling with a significant surge in property taxes, driven by a combination of escalating home values and changes in property assessment laws following renovations. This financial strain is forcing some long-time residents to reconsider their ability to remain in their homes, sparking calls for tax relief and reform.
Key Takeaways
- Property taxes in Broward County are increasing dramatically for some homeowners, even those with homestead exemptions.
- Major home renovations can trigger a full property reassessment, removing protections like the Save Our Homes cap.
- A surge in all-cash offers from out-of-state buyers is driving up market values and, consequently, property tax assessments.
- While the Broward County Commission has slightly lowered its millage rate, rising property values mean tax bills are still increasing for many.
- Calls for property tax reform are growing, with some advocating for significant changes to alleviate the burden on residents.
The Renovation Reassessment Trap
For residents like Walter and Debbie Priebe of Pompano Beach, a planned renovation to their family home turned into a financial crisis. After investing in necessary repairs and upgrades, including adding a second story, their annual property taxes jumped from $15,000 to over $90,000. This drastic increase occurred because their substantial improvements triggered a full reassessment of their property’s value, effectively treating it as new construction and nullifying the protections of the Save Our Homes cap, which limits annual increases in assessed value.
Florida law mandates that homesteaded properties are reassessed at their just value (market value) after substantial improvements are made. While county officials acknowledge the difficult position this puts them in, they must adhere to the law, which requires market-based assessments.
The Impact of a Hot Housing Market
The Priebes’ situation is exacerbated by the booming Broward County housing market. The influx of out-of-state buyers, often making all-cash offers, has driven home prices to unprecedented levels. In the Priebes’ ZIP code, the percentage of all-cash home sales surged from 37% in 2002 to 62% by 2023. These high-value sales are factored into property assessments, leading to higher tax burdens for all homeowners in the area, even those who have owned their homes for decades.
County Efforts and Calls for Reform
In response to the growing concerns, the Broward County Commission recently voted to slightly lower its millage rate for the upcoming fiscal year. However, this modest reduction, from 5.6690% to 5.6658%, is offset by the continued rise in property values, meaning many residents will still see their tax bills increase. The commission also implemented cost-saving measures, including cutting funded positions and operating costs, to manage the budget.
Governor Ron DeSantis has expressed support for property tax reform, even suggesting the elimination of property taxes altogether, though such a drastic change faces significant opposition due to its impact on funding for local services. For homeowners like the Priebes, the urgency for relief is paramount, as the escalating tax bills threaten their ability to remain in their cherished homes.