Broward County property owners are grappling with increasing tax bills, even as the County Commission voted to slightly lower the millage rate for the first time since 2018. This seemingly contradictory situation is driven by a significant surge in property values, which is outpacing the modest rate reduction. The county’s budget for Fiscal Year 2026, beginning October 1, was approved amidst financial challenges, including a $80 million funding loss to the Tax Collector’s Office, leading to budget cuts and position eliminations.
Key Takeaways
- Broward County’s millage rate has been reduced from 5.6690% to 5.6658%.
- Despite the rate decrease, property tax bills are expected to rise due to escalating property values.
- The county’s total budget for FY26 is $8.8 billion.
- 159 positions and nearly $20 million in operating costs were cut to offset budget shortfalls.
- Broward County maintains a "AAA" credit rating.
The Impact of Rising Property Values
The Broward County Commission’s decision to lower its millage rate to 5.6658% from 5.6690% was intended to provide some relief. However, this small reduction, amounting to just over $1 million from the nearly $2 billion generated by property taxes, is overshadowed by the continuous rise in property values. This trend means that homeowners will likely see their tax obligations increase.
A Homeowner’s Struggle
The challenges faced by property owners are exemplified by the case of Walter and Debbie Priebe. After renovating their Pompano Beach home, which they purchased in 2002, their annual property taxes skyrocketed from $15,000 to over $90,000. The renovations triggered a full reassessment of their property’s value, which had increased from $650,000 to over $4.4 million due to high market demand and a surge in all-cash offers from out-of-state buyers. Florida law dictates that substantial improvements can lead to a property being reassessed at its current market value, potentially nullifying homestead exemptions and the Save Our Homes cap.
County Finances and Budgetary Adjustments
The approval of the FY26 budget, totaling $8.8 billion, was described as "particularly challenging" by county officials. The loss of $80 million in funding for the Tax Collector’s Office and the need to fund all county-wide constitutional offices contributed to the difficulties. To manage these financial pressures, the commission implemented cuts, including eliminating 159 funded positions and reducing recurring operating costs by nearly $20 million. An increase of $24.2 million was allocated to the Broward Sheriff’s Office regional budget and 9-1-1 services.
Property Tax Landscape in Florida
Broward County’s average property tax rate is noted as 19.8427, translating to approximately $5,952.81 on a $300,000 home. This places it among the higher-taxed counties in Florida, though not the highest. The statewide average property tax rate is 17.0133. The state offers property tax relief through Homestead Exemptions, which can significantly reduce the taxable value of a primary residence for qualifying homeowners.
Sources
- Broward property owners get ‘modest’ decrease on property tax bills. So why will tax bill go up?, WLRN.
- 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.