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    • As Palm Beach real estate prices rise, tax assessments go out in the mail
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    As Palm Beach real estate prices rise, tax assessments go out in the mail

    Madoc Meredith Posted on

    Estimates of the new bills are currently being presented to Palm Beach taxpayers and are based on preliminary taxable property values ​​totaling $32 billion.

    The fabled check may not be in the mail, but something else is definitely there – at least for those who own taxable property in Palm Beach or other parts of Palm Beach County.

    County Property Assessor Dorothy Jacks’ office mailed taxpayers preliminary estimates on August 22 of what their property taxes might ultimately be due for the past tax year.

    Each notice reflects Jack’s current best estimate of 2024 tax bills, based on the estimated values ​​her staff has assigned to each taxable property in the county. Final bills will be sent out by Nov. 1 to meet a state deadline.

    “This notice reflects the change in the market value, assessed value and tax value of your property,” Jacks wrote in a newsletter on her website.

    It added that the notifications also included an explanation of any exemptions or ‘valuation reductions’ applied in calculating the provisional estimates.

    The amount Palm Beach property owners actually have to pay could change once the city, county, school board and other taxing authorities finalize their tax rates. Those rates are typically adopted by the end of September.

    Here are a few things you should know about the so-called “Truth in Millage” or TRIM notices that will soon be landing in your mailboxes.

    Real estate prices in Palm Beach have increased – but by how much?

    Palm Beach’s estimated taxable property values ​​rose 10.6% to $32.15 billion in the new fiscal year, up from $29.08 billion last year. As usual, the 2023 estimates were actually higher than the actual values, which were finalized last November, when the city’s taxable values ​​were $28.89 million.

    Jack’s latest figures were based on “market conditions” as of January 1 of this year, according to a statement accompanying property value estimates completed in late June.

    How does the total market value of a property fit into the tax situation?

    Before determining the taxable value of a property, the appraiser’s office assigns it a total market value. This value is the starting point before any property tax exemptions, tax caps and other discounts are applied to determine the final taxable value.

    In Palm Beach, the estimated “total market value” of real estate — including homes, condos, co-ops and commercial buildings — rose 10.6 percent year over year to $54.68 billion. The figures are based on “market conditions” as of Jan. 1 of each year, according to Jack’s office.

    According to Jack’s office, the assessed market value of properties across the county increased about 5.65% from last year, from $486.6 billion to $514 billion. That’s an increase of about $27.5 billion. But when the final numbers for 2023 were compiled, the market value of the tax rolls across the county was $485.98 billion.

    What about tax exemptions?

    For residential property owners who claim a property tax exemption – and thus declare their home as their primary residence – the annual tax increase this year will be capped at 3 percent by state law, according to a statement on the real estate appraiser’s website.

    This so-called “value cap” limits the tax increase for non-residential properties to 10%.

    The notices sent by mail also contain provisional tax rates of the district, municipalities and other authorities with tax jurisdiction.

    There is also information about each agency’s budget hearings, “so that you can participate in the process of setting your tax rates,” Jacks wrote in a newsletter on the real estate appraiser’s website.

    In addition, the notices just sent include a section detailing fees for so-called “non-ad valorum” levies, for example for government services such as garbage collection, sewage disposal, street lighting and other items.

    What happens if a property owner disagrees with an appraisal?

    The notices give taxpayers – and their accountants and asset managers – the opportunity to verify the accuracy of the values ​​assigned to their properties.

    Jacks urged taxpayers who have questions or concerns about the notices to contact her office as soon as possible to discuss the situation.

    Taxpayers who believe the market value of their property is incorrect or lacks an exemption have until September 16 to file an appeal with the state-authorized Value Adjustment Board.

    How do the tax authorities use the estimates from Jack’s office?

    The taxable value estimates are used by Palm Beach authorities and other entities – including the County Commission and School Board – to calculate their budgets and set final property tax rates for the coming fiscal year.

    For example, the Palm Beach City Council held a budget workshop at City Hall in mid-July.

    At that meeting, the council unanimously approved a provisional tax rate that would keep the city’s tax rate at the previous year’s level.

    The proposed municipal tax rate of $2.61 per $1,000 of taxable value would mean that property owners without their own residential development would see their tax bill increase by $179 per $1 million of their property’s value.

    The taxes will help fund the city’s proposed $116.7 million budget for the new fiscal year.

    The city is usually allowed to keep slightly less than 20% of the total tax revenue generated by its properties. The rest goes to other taxing authorities.

    The proposed budget and tax rate are to be finalized in two state-mandated public hearings tentatively scheduled for September 11 and 19.

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    Portions of this story previously appeared in the Palm Beach Daily News.

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    Darrell Hofheinz is a journalist with the USA TODAY Network of Florida and writes about Palm Beach real estate in his weekly column, “Beyond the Hedges.” He welcomes tips on what’s new in the island’s real estate industry. Email [email protected]call (561) 820-3831 or tweet @PBDN_Hofheinz. Support our journalism. Subscribe today.

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    Madoc Meredith
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