Miami Tax Roll Jumps 25
Written by Deserae del Campo on February 2, 2006
By Deserae del Campo
Property value in Miami is skyrocketing. This year’s city tax roll hit $27.7 billion, up from $22.2 billion last year, with the city due $212 million in tax revenue.
"I believe our taxable value will keep increasing by the double-digits … until maybe 2009 or 2009, where it will eventually level off," said Larry Spring, city chief of strategic planning and budgeting.
Burgeoning construction pushed rolls up about $1 billion this year, 80% to 90% of that from the city’s building boom, Mr. Spring said. "This $1 billion includes condo development, building of new homes within the city, adding additions to current homes and rehabilitated buildings in Miami."
The increase from last year also includes $4 billion-plus from higher assessed values for existing property.
"An example of this can be the sale of a property from seller to buyer – the person buying now has to pay the new property-tax assessments on the home," Mr. Spring said.
Assessed values can rise a maximum 3% a year for those with $25,000 homestead exemptions. But when the property is sold, the county increases its assessment to true value, which could be a substantial jump because property values have been rising at double-digit levels annually.
The 3% ceiling doesn’t apply to commercial properties or residences lacking homestead exemptions such as vacation homes.
The city expects the condo boom to add about $9 million in taxes, money that will finance city operations such as police, fire rescue and garbage pickup. City records show 376 current development projects in Miami at construction costs of $29 billion.
"Not all the projects will be built," Mr. Spring said, "and I only see maybe $10 billion or $12 billion in construction projects being completed in the future."