South Florida's home value increase in 2020 could affect property tax value.

By George Castro P.A.

Amid a Global Pandemic, South Florida's real estate market does not take a break. Records indicated that home values have increased since 2019. Perfect if you are wanting to sell in 2020 however, does the increase of value also affect homeowner's ad valorem tax?

Ad valorem is the tax based on the assessed value of an asset (i.e. real estate.) So if home value's increase, typically tax values do too. A 5.9% increase in property value for Palm Beach County is due to new construction of condominiums and apartments. Broward County is also seeing value increases of 6.1% due to new construction. Although many businesses are failing due to the Pandemic, construction has not been affected at this time and property values are continuing to go up!

South Florida municipalities have appeared to be determined in keeping the ad valorem down despite and increase in real estate values. Property taxes are used to build cities infrastructures, fund public services such as public schools, police, hospitals, and city workers. With a bearish economy due to the Pandemic, The City of Boca Raton, like many other municipalities, are cutting down on expenses in order to offset the loss of tax revenue.

The City is staying at the same tax rate of 3.58% although property values have increased. The City is also being forced to make budget cuts at this time. Check to see if your city is increasing your property taxes.

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