“The one thing that is 100 percent certain is that Broward’s real estate is on fire,” Kiar said. “You have so many people moving into South Florida and making it their home. People are paying an enormous amount of money to live in South Florida, and that’s what’s led to the increase.”

If anything, the counties’ property value estimates likely understate the rise in local real estate prices. That’s because the taxable valuations for primary residences, those with so-called homestead exemptions, reflect not market prices but the lower valuations used to calculate those homeowners’ property tax bills. State law caps the amount taxable values for homesteaded properties can grow each year at the inflation rate, up to 3%.

In Miami-Dade, the estimates came with a public warning and a plea from Garcia, the veteran elected property appraiser. He noted the higher tax values could mean a massive revenue windfall for local governments, if tax rates remain unchanged.

A memo by the County Commission’s budget office, for instance, estimates the higher property values would generate an extra $154 million in 2023 under existing rates for the four property taxes that fund county services. But the estimated 10.2% growth rate for Miami-Dade property values was significantly higher than the 3% growth forecast in Miami-Dade’s budget, prompting calls for a cut in tax rates for 2023.

If tax rates are not rolled back, Garcia said in a memo to Miami-Dade Mayor Daniella Levine Cava and county commissioners, the sharp rise in taxable property values could mean a significantly higher tax liability for all homeowners. Those with a homestead exemption could see taxes rise the maximum of 3% since inflation is now more than double that rate, still a significantly increased tax bill for many. Garcia said the 3% cap applies to about 400,000 households with primary residences in Miami-Dade, properties granted homestead tax protections.

That could exacerbate an affordability crisis in which many county residents already have trouble paying housing and other costs, Garcia said in urging elected officials across the county and the school board to use the extra property-tax revenue from higher values for a tax-rate cut.

“With the high rate of inflation, many families are struggling,” Garcia wrote. “A 3 percent reduction in the countywide millage rate would prevent a county tax increase for these homeowners, while also providing tax relief to non-homestead property owners. The 3% cut can make the difference between a tax increase and no increase for homeowners.”

Jose “Pepe” Diaz, the chairman of the county commission, said Wednesday he was receptive to lowering tax rates for the 2023 budget year that begins Oct. 1 in hopes of easing pressure on soaring housing prices and residential rents.

“I’m open to a rate cut,” Diaz said, “to help stop the housing cost increases.”

Broward’s Kiar said the rising values make it especially hard for prospective first-time home buyers.

“It is so difficult for them to afford a home in South Florida,” Kiar said.

The June 1 estimate from county property appraisers in Florida is provided to local taxing authorities to assist them with their budget preparations. However, the values released on June 1 are only estimates, which are subject to change. The official certification date for the 2022 tax assessment roll is on July 1. Homeowners can expect to receive their property tax valuation sometime in August.

As residents fan out across the county in search of affordable housing, Miami-Dade’s majority-Black cities saw some of the largest increases in property values, led by Florida City at 29.1%. Three others — Miami Gardens (15.3%), North Miami (13.1%) and perennially troubled Opa-locka (15.3%) — were clustered tightly together. Miami Gardens also benefited from an annexation. The taxable property value increases are tied to the sales volume and median sales price increases, according to the county appraiser’s office.

Even those municipalities at the bottom of the range experienced increases that in any other year would be notable. That includes Surfside at 6.3% and Miami Springs at 6.2%.

Some cities and towns long seen as havens of housing affordability are rapidly become less so, the figures show. For example, Homestead saw values go up 13.9%, Hialeah 11.2% and Hialeah Gardens 9.0%, while unincorporated Miami-Dade experienced an 8.7% rise in property values.

Places that had seen a dip in values in 2020 rebounded. That includes some cities and towns that have seen a boost in luxury housing development, like Bal Harbour at 8.3% growth in values, Bay Harbor Islands at 16.4%, and Miami Beach at 9.2%.

Source: Miami Herald