County property valuesrose by 9.2% in 2023, according to preliminary data released by Palm Beach County Property Appraiser Dorothy Jacks.
The county's market value, the second highest in Florida, now exceeds $500 billion for the first time; its taxable value is $316 billion. And new construction, an important driver in increasing the county's tax base, totaled more than $5 billion in 2023. The numbers presented Tuesday are estimates but are not expected to significantly change.
Taxable value reflects the value assigned to parcels after discounts are applied. That includes caps, such as homestead exemptions, that limit the percentage amount that can be levied to raise a parcel's assessment. Market value, a much higher amount, is what appraisers believe the property would sell for in the open market.
Jacks presented a report to county commissioners Tuesday for the county's 39 municipalities along with the unincorporated areas of the county, which, for the most part, are west of Military Trail.
Will your property tax bill increase given the latest data?
The data shows that property values are continuing to rise throughout the county, although not at the double-digit percentage rate of the past two years. Nonetheless, the 9.2% increase in net taxable value could push tax bills higher, especially for those whose properties are not homesteaded. Taxable values have nearly doubled in the past 10 years.
State law prevents assessments from rising more than 3% on homesteaded parcels; non-homesteaded properties can increase by as much as 10%. Many commercial leases allow landlords to pass along property tax increases to tenants. Owners of apartment complexes are expected to pass along their tax bill increases to tenants who are already struggling to cope with sizable rent increases in recent years.
The tax bill increase this year, if there is one, will depend on the millage or tax rate that is enacted by the different taxing authorities. Taxpayers will receive their preliminary property tax bills in late August.
“The overall increase in taxable value has slowed compared to previous years,” Jacks said in a press release. “Market values for some building types have begun to flatten in Palm Beach County."
Construction of apartment complexes and warehouses are on the rise in the county
Jacks told county commissioners that there has been a significant increase in the number of apartment complexes being built, which could help to flatten rent increases and make apartments more affordable. The key is to increase inventory, she noted, which is occurring. Warehouse building is also on the rise, according to Jacks.
Just last week, The Post reported on a ceremonial groundbreaking at The Park at Delray,a $121 million warehouse projectbeing built on what once was a nursery in the Agricultural Reserve off State Road 7 west of Delray Beach. BBX, based in Fort Lauderdale, has already cleared nearly 40 acres in preparation for three large warehouse buildings, each about 200,000 square feet.
Jacks also reported that she expects some of the older condominium projects along the coast to be impacted by the new law that requires homeowners associations (HOAs) to fully fund their reserves and, if necessary, undertake expensive repairs. Jacks said her appraisers are already seeing value at some buildings decline.
Tax rate cuts may be necessary to avoid tax bill hikes
Last year, county commissioners cut the tax rate enough to keep homesteaded properties from seeing an increase. That may be difficult to do again this year with strong inflationary pressures being exerted on the county budget. The county used more reserve funds last year to cushion budget increases, a practice that finance officials opposed.
For the purposes of the 2024 budget, county appraisers compute values as of Jan. 1 every year, which means they reviewed sales data for calendar year 2023.
The 39 municipalities had a combined net taxable value of $219.6 billion. The unincorporated area of the county had a value of $315.6 billion. New construction was again very robust with the municipalities registering $3.6 billion worth of new construction and the county, $5 billion.
"New construction, when it comes onto the tax bills, is fresh value that has never before been taxed," Jacks noted, adding that it helps to expand the county's tax base.
More: Property values across Palm Beach County increase nearly 14%, raising concerns tax bills will follow
Fueled by new construction, the county's newest municipality, Westlake, now has a taxable value of more than $1 billion. Its taxable value increased by 41%. Nearly $300 million worth of new construction was built last year. It incorporated in 2017. It is one of the fastest growing cities in the country.
Boca Raton, at $37.3 billion, continues to have the highest taxable value in the county followed by Palm Beach at $31.6 billion.
Some notable findings:
Other municipalities with taxable values exceeding $10 billion include West Palm Beach, $23.2 billion, a 10% increase; Palm Beach Gardens, $19.8 billion, a 10.6% increase; Delray Beach, $18 billion, a 10% increase; Jupiter, $17.2 billion, a 8.8% increase; and Wellington, $12.4 billion, a 8.8 % increase.
Lake Park, the Village of Golf and Jupiter Inlet Colony all registered taxable value increases of more than 15%.
The increase in property values should come as no surprise. The Broward, Palm Beaches, and St. Lucie Realtors group reported last month that sale prices on existing single-family homes in Palm Beach Countysoared to another record highlast month despite economic challenges including high interest rates and steep insurance costs.
Averagesale prices on single-family homeshit $1.17 million in April, according to the realtors group. An FAU housing market report released in April, showed that homes in South Florida — which includes Palm Beach, Broward and Miami-Dade counties — are 34.7% overvalued compared to their long-term pricing trends.
More: Palm Beach County looking for record millage rate cut to keep property tax bills from rising
City-by-city 2023 taxable values and percent increases
Atlantis: $758,372,676, +4.99
Belle Glade: $612,864,897, +10.70
Boca Raton: $37,328,784,965, +7.83
Boynton Beach: $9,826,138,737, +8.19
Briny Breezes: $94,764,021, +10.79
Cloud Lake: $13,310,805, +11.45
Delray Beach: $17,961,741,813, +9.97
Glen Ridge: $34,661,116, +8.87
Golf: $369,953,400, +18.05
Greenacres: $3,123,874,817, +8.36
Gulf Stream: $1,752,395,994, +5.91
Haverhill: $169,026,257, +9.13
Highland Beach: $3,843,377,211, +8.79
Hypoluxo: $558,102,275, +8.11
Juno Beach: $2,414545,048, +6.52
Jupiter: $17,221,051,791, +8.80
Jupiter Inlet Colony: $639,650,966, +17.33
Lake Clarke Shores: $403,390,910, +8.50
Lake Park: $1,190,507,475, +15.73
Lake Worth Beach: $3,410,902,307, +9.05
Lantana: $1,945,500,896, +8.57
Loxahatchee Groves: $593,976,204, +13.02
Manalapan: $2,248,320,217, +5.23
Mangonia Park: $385,748,935, +13.61
North Palm Beach: $3,628,093,767, +7.71
Ocean Ridge: $1,668,989,221, +9.40
Pahokee: $123,974,866, +5.85
Palm Beach: $31,638,809,883, +9.52
Palm Beach Gardens: $19,817,303,311, +10.62
Palm Beach Shores: $840,682,923, +8.98
Palm Springs: $2,048,542,785, +7.83
Riviera Beach: $8,611,539,107, +11.38
Royal Palm Beach: $4,579,603,093, +7.60
South Bay: $105,444,450, +6.44
South Palm Beach: $640,296,464, +9.62
Tequesta: $2,041,463,716, +8.91
Wellington: $12,410,442,486, +7.88
West Palm Beach: $23,219,557,604, +10.32
Westlake: $1,283,434,158, +40.50
Unincorporated: $315,500,832,798, +9.12
SOURCE: Palm Beach County Tax Appraiser's Office.
NOTE: Net taxable value includes new construction, additions, annexations and deletions
Mike Diamond is a journalist atThe Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government and transportation. You can reach him atmdiamond@pbpost.com. Help support local journalism.Subscribe today.
This article originally appeared on Palm Beach Post: Palm Beach County property values increased by 9.2 percent in 2023
