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Front Page » Top Stories » Miami Tax Roll Jumps 25

Miami Tax Roll Jumps 25

Written by 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." Advertisement