After huge spikes in 2022 and 2023, property values have stabilized in Collier County – at least, overall.
The preliminary tax roll for 2024 shows they dropped by 1.2% to $216.9 billion countywide, down from $219.6 billion last year.
That would be the first time the county, as a whole, has seen a decline in more than a decade.
However, there is more likely to be a 1% to 2% increase, when all the data is crunched, said Jennifer Blaje Plock, director of tax roll compliance/data management at the Collier County Property Appraiser’s office.
The preliminary roll is just that – and the final roll will look different. Especially this year in Collier County, with the later arrival of sales data from the Florida Department of Revenue, Plock said.
Counties with bigger swings in values receive their information first, and that’s not the place Collier is in this year, she explained.
In the county, property values increased by 41.2% in 2022, following a buying frenzy, and then by another 18.5% in 2023, following Hurricane Ian. Now, it’s a different story.
Ian did some heavy damage in September 2022, especially near the coastline, as it barreled by – before making landfall in neighboring Lee County, as a catastrophic Category 4 hurricane. That led to some significant “land-only sales” that drove up values in the aftermath of the storm, along with other factors, contributing to the spike last year.
“We saw a lot of demos,” Plock said.
Now, the county’s property values are “increasing at a declining rate,” she said.
She added: “It’s acting more like a true market.”
Matthew Simmons, a managing partner for Maxwell, Hendry & Simmons, a commercial and residential appraisal and consulting firm based in Fort Myers, agreed.
“Most residential and commercial submarkets are flat,” he said.
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Even sitting at nearly $217 billion, the total value of all property in Collier is still 4.6% higher than it is in Lee, Simmons pointed out.
Despite the shifting market, Collier saw an increase in taxable values from 2023 to 2024.
“Taxable values often still increase in flat or down markets since they trail just value and are often still catching up when the market shifts,” Simmons said. “One of the benefits of that, from the taxing jurisdiction’s perspective, is that it reduces volatility in municipal budgets.”
From a property owner’s perspective, however, it “definitely stings” if property values fall, but taxable values still rise, he said.
In a more stable market, assessed values can begin to catch up with market values, through the allowable annual tax increases under state law, after any exemptions, Plock said.
Local governments, including the county, cities and the school district, will use the preliminary tax roll data as a starting point to plan their budgets for next year.
The assessed value of a property takes into account any limits or caps on taxes. From there, the taxable value is determined by subtracting out any exemptions, and that’s used as the basis for the property tax bill.
Taxable values still rose countywide
Countywide, taxable values increased by more than 9% to more than $150 billion. That included $2.89 billion in new construction, which was down in value by about 1% from 2023, following two years of significant growth.
In each of the cities and for each fire district, taxable values rose. In part, it reflects the loss of tax caps after properties changed hands, Simmons said.
“For properties that have been owned a long time, the 3% homestead and 10% non-homestead cap really adds up over time and results in a taxable value well below the just value,” he said.
The city of Naples saw the largest increase in taxable value this year – at 10.4%.
“It’s part of that recapture,” Plock said. “That catching up.”
With taxable values up, she emphasized the county and cities can generate more money at the same millage, or property tax rate, or choose to lower their tax rates, with decisions to be made by their elected leaders over the coming months.
She doesn’t expect taxable values to change as much as market values in the final roll.
Here’s a preliminary look at market value changes in the three cities, which are likely to improve:
- In Naples, they rose by 0.39% to $54.1 billion.
- On Marco Island, they declined by 4.67% to $22.6 billion.
- In Everglades City, they increased by 2.21% to $184.1 million.
Outside of the cities, the unincorporated area’s values are estimated at more than $140 billion, which would be down by 1.23% over last year, but again that’s likely to change for the better, with the finalization of the roll, Plock said.
New construction added more than $701.5 million of market value in Naples, nearly $252.6 million on Marco, and about $1.2 million in Everglades City.
Outside of the cities, the county gained $2.19 billion in value from new construction, down by nearly 14% over 2023.
The final roll will be submitted to the Florida Department of Revenue on July 1.
The department must approve the roll before it becomes certified. Annual property tax notices are mailed by Nov. 1 each year.
