The estimated taxable real estate value rose for most Miami-Dade municipalities and for all Broward county.
The State of Florida performs property appraisals every year in January. This year, right before COVID-19, the valuation created some agitation in the real estate market.
The preliminary estimated taxable value increased by 4.6% in Miami-Dade, from $307.2 billion in 2019 to $333.7 billion in 2020. In Broward, it grew by 6.14%, from $199 billion in 2019 to $211.2 billion in 2020. The taxable values will be finalized July 1.
The municipalities with highest overall increase in values including new construction in West Miami. These are municipalities dominated by mid-market housing West Miami 12%, Florida City 11.2%, Hialeah 9.6%, and North Miami 9.4%. The value for existing housing grew, being Hialeah the city with most growth 8%, followed by Florida City 7.6%, El Portal 7.6% and Biscayne Park 7.0%.
In general, the overall assessment values fell in five upscale municipalities that dominate luxury housing. These municipalities are: Bal Harbour -4.2%, Aventura -3.2%, Key Biscayne -1.5%, North Bay Village -1.5% and Surfside -0.3%. For existing housing the value fell in the following municipalities that are dominated by luxury housing: Sunny Isles -5.3%, Bal Harbour -4.2%, Aventura -4.1%, North Bay Village -3.3%, Key Biscayne -1.6%, Surfside -1.6% downtown Miami -1%, and Golden Beach -0.1%
The taxable values in Broward had a slight increase for all 31 cities in the county. The increase is credited to three trends in 2019, including population growth, new residential and commercial construction. Marty Kiar, Broward County’s tax appraiser said that there were a lot of properties that exchanged hands.
The most relevant increase occurred in the following municipalities: West Park 9.33%, Lauderdale Lakes 7.32%, North Lauderdale 7.22%, Lauderhill 7.02%, and Oakland Park 6.99%. Lazy Lake had the lowest growth (0.33%).
Kiar says that the bigger increase in West Park happened because a lot of people are moving there, while the lowest increase in Lazy Lake is just because it is the smallest community. It covers only a few blocks, with about 20 to 30 homes.
It is encouraging to know that higher tax values don’t necessarily mean higher property taxes. The property taxes are calculated after counties determine millage rates.
Tom Ringel, a founding partner at the Kendall-based law firm Markowitz Ringel Trusty & Hartog said that, even though the economic downturn, and job losses is making it difficult for some homeowners to afford the increased property taxes, litigation is unlikely.
Miami-Dade property owners can review their estimated assessed values online at Miami-Dade website, and can file appeals with the county property appraisers. Miami-Dade homeowners can also ask for quarterly payment plans. Perhaps a legislative miracle happens as Kiar said: you never know what can happen – the Florida Legislature may allow us to consider the pandemic for this year or there may be an executive order that would allow us to do so.”
Appealing the assessment of your property may be worth it if you consider the assessment of your property is inflated; however, before moving into that direction, you may want to consider if it is worth or not to request the assessment appeal. In May, Ringel said: “If you think the assessment is unfair, the cost of litigation with attorney fees may be worth it for those $30 million-plus homes, but not for the $600,000 to $800,000 run-of-the-mill houses. The savings won’t be worth it.”
Hotel owners are already suffering revenue losses from pandemic closures, and may suffer most, Mandler a partner at the downtown Miami-based law firm Rennert Vogel Mandler & Rodriguez, agrees with Ringel. For Mandler it seems like the hardest hit will be for commercial real estate property owners.
The facts are that the high supply of luxury condos and the decrease in foreign buyers caused a slowdown in the Miami-Dade market. So far, Hialeah real estate increased values in 2020. And according to county property appraisers, new construction prices were higher for both counties before COVID-19.
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