Palm Beach property owners — and taxpayers — continue to feel the after-effects of the recent real estate boom that sent values of mansions, houses, condominiums and commercial buildings soaring like a Fourth of July bottle rocket.
The latest evidence? Total market values in town jumped about 10.6% — to $54.68 billion — last year, according to a just-released summary of preliminary estimates from the Palm Beach County Property Appraiser’s office.That means the town could add $5.24 billion in value to its 2024 property-tax roll, if the estimates hold.
The new figures also show that the property appraiser’s estimated market values in Palm Beach have more than doubled since the coronavirus upended the island’s real estate market about four years ago. For the 2020 tax rolls, which were based on 2019 property data, the preliminary value estimates for Palm Beach real estate clocked in at $24.7 billion.
The latest market values — to be finalized this fall — are the starting point for figuring taxes. The values were assigned by Property Appraiser Dorothy Jacks’ staff to each real estate parcel based on “market conditions” as of Jan. 1 of this year, according a statement accompanying the estimates released by the agency.
The preliminary value estimates include nearly $200 million worth of new construction projects in Palm Beach that were completed in time to meet the Jan. 1 cut-off. The year before, Jacks’ office surveyed $160 million in new construction in town.
The increase in construction estimates mirrored an trend seen throughout the county.
“For the first time our county’s history, new construction topped $5 billion,” Jacks said in a statement accompanying her June 26 report. “This is new value that is being taxed for the first time this year, adding revenue to many districts.”
Jacks’ office released the preliminary estimates in time to meet a July 1 state deadline. Town officials — and those in other municipalities and taxing authorities — will use Jacks’ figures to help estimate potential property-tax revenue as they prepare budgets for the coming year and set tax rates accordingly.
The increase in market value in Palm Beach was far lower than the 21% year-over-year hike in the estimates released last year at this time, when estimated values jumped from $40.77 billion to $49.45 billion.The estimated hike in value had been even higher for the previous year — a record-setting jump of nearly 46%.
Across the county, the latest combined estimated market value of properties rose 5.65%, year over year, from $486.6 billion to $514 billion, the report shows. That’s an increase of about $27.5 billion.
But by the time the final figures were compiled, the countywide market value for the 2023 tax rolls had dropped to $485.98 billion.
Palm Beach is essentially a bedroom community — and that helps boost values
As usual, residential properties make up the vast bulk of the Palm Beach parcels included in preliminary value estimates.
In the latest round, Jacks’ office shows Palm Beach’s overall residential values — including single-family homes, multi-family buildings, condominiums and co-operative units — total $48.77 billion. A year ago, that figure was $44.4 billion, up from $36.22 billion the previous year. The residential figures do not include vacant land zoned for residential use.
In making their residential valuations, Jacks’ analysts focus partly on comparing sales within individual neighborhoods and then adjusting values as a result.
“We’re looking at the general overall trend, based on a range of sales,” Jacks previously has said about the process.
Total residential sales volume on the island hit $1.9 billion in 2023, down slightly from from the $2.25 billion seen in 2022, according to a sales report issued in January by the Frisbie Palm Beach Real Estate Group.
Palm Beach’s developed commercial property, excluding vacant properties,has an estimated valuemuch lower than the town’s residential real estate. The latest preliminary estimates gave commercial properties an overall value of $3.198 billion, compared to $2.96 billion the previous year.
'Taxable values' for properties figure in exemptions, tax caps
The new tax rolls won’t be figured on the overall market values but on so-called “taxable” values, which start with the market-value figure and then factor in homestead exemptions, other discounts and tax caps.
In Jacks’ latest report, Palm Beach’s estimated taxable values jumped 10.6%, year over year, from about $29.08 billion to about $32.15 billion. Once the tax rates were finalized last year, the town’s taxable value settled at about $28.89 billion, according to Jacks’ office.
For property owners who take a homestead exemption — and thus declare their homes to be their primary residences — annual tax increases are generally capped at 3% under Florida law. The so-called “value cap” is limited to a 10% increase for non-homesteaded properties.
In the preliminary estimates just released by Jacks’ office, estimated taxable values countywide jumped about 9.99% to $318.01 billion, compared to last year’s final figure of $289.127 billion.
The new summary of estimated preliminary values follows a more informal report released by Jacks’ office at the end of May, which also showed values were up in Palm Beach and across the country.
Palm Beach's budgeting process for new tax year begins in July
The Palm Beach Town Council will hold a budget workshop at 9:30 a.m. July 11 at Town Hall, when it will set a proposed tax rate.
Once all of the county’s municipalities, the Board of County Commissioners and other taxing authorities settle on their proposed tax rates, estimated tax bills are expected to be mailed to taxpayers in mid August.
In Palm Beach, the Town Council will discuss the proposed budget and tax rate at a special meeting tentatively set for Sept. 11, with another scheduled for Sept. 19. The new budget and tax rate could be adopted at the second meeting.
Tax rates countywide are expected to be finalized by the end of October. State law requires final tax bills to be mailed to property owners by Nov. 1.
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This story was updated from a previous version.
Darrell Hofheinz is aUSA TODAY Network of Florida journalist who writes about Palm Beach real estate in his weekly “Beyond the Hedges” column. He welcomes tipsabout real estate news on the island. Email dhofheinz@pbdailynews.com, call 561-820-3831 or tweet @PBDN_Hofheinz.
