Palm Beach's Property Tax Forecast for 2023: An Insight
For many property owners in Palm Beach – and indeed throughout the county – the time is drawing near when we'll gain insight into what the new property tax rolls might mean for us. As the Scott Gordon Group, committed to keeping you updated with the latest market dynamics, we're here to break down a recent article published by Darrell Hofheinzof the Palm Beach Daily News.
What's On the Horizon?
On Friday, the office of Dorothy Jacks will distribute preliminary tax estimates to property owners. However, it's vital to note that these are estimates – educated guesses at where your tax bills might stand based on the most recent property evaluations across the county.
While these notifications provide valuable insights, they are not definitive bills. They represent Jacks' current expectations of where your property taxes might land later this year. As always, the final amount you'll be asked to pay could vary, dependent on the rates that local authorities finalize by November 1. These rates usually get formalized by the end of September.
The Property Value Spike
Interestingly, the estimated taxable property values in Palm Beach have seen a considerable rise. They've surged by 13.73%, growing to $29.08 billion for the 2023 tax year from $25.57 billion the previous year. But what do these numbers mean in terms of market conditions? As of January 1, these values represent a response to market dynamics, giving an indication of the real estate health in Palm Beach.
Before determining a property's taxable worth, its total market value gets identified. In Palm Beach, this estimated "total market value" has impressively grown by 21.29%, standing at $49.45 billion, a considerable increase from $40.77 billion just a year ago. Countywide, this combined estimated value leaped by roughly $82 billion year over year.
How Exemptions Factor In
For those leveraging a homestead exemption, the annual tax increase will be state-capped at 3%. Non-homesteaded properties will see a "value cap" that limits tax augmentations to 10%.
Moreover, these notices, expected to be sent out shortly, will also contain preliminary tax rates. It's crucial to understand that these figures are tentative and can be altered following public discussions.
Disagreements about a property's valuation? Taxpayers can appeal through the Value Adjustment Board until September 12. If there are queries or concerns, it's advised to connect with Jacks' office at the earliest.
The Broader Impact on Taxing Authorities
These estimates are more than just numbers on paper. They serve as tools for officials in Palm Beach and other entities, aiding in budget planning and determining final property tax rates for the subsequent fiscal year.
To provide context, during a mid-July budget workshop, the Town Council proposed a municipal tax rate that, if passed, would mean no property-tax increase for homesteaded Palm Beach residents in the next fiscal year. For non-homesteaded property owners, this might translate to an increase of $179 for every $1 million of their property's value.
While these are preliminary figures, understanding them is essential for property owners in Palm Beach. The next significant dates to watch out for are September 12 and 21, when these tax rates and budgets will be reconsidered and potentially finalized.
Stay tuned to the Scott Gordon Group for more insights, always keeping your real estate interests at the forefront. And remember, as we've gleaned these insights from the comprehensive coverage by Dorothy Jacks and her office, always consider speaking with us directly for any specific concerns or clarifications.