That fabled check might not be in the mail, but something else definitely is, at least for those who own taxable property in Palm Beach or other parts of Palm Beach County.
County Property Appraiser Dorothy Jacks‘ office on Aug. 22 mailed taxpayers preliminary estimates of what they might ultimately be billed for their property taxes for the latest tax year.
Each notice reflects Jacks’ best guess at this point about the 2024 tax bills, based on the estimated values her staff has assigned to every taxable property in the county. The final bills will be mailed by the Nov. 1 to meet a state deadline.
“This notice shows the change in market, assessed and taxable values of your property,” Jacks wrote in a newsletter on her website.
The notices also included an explanation about any exemptions or “assessment reductions” used to figure the preliminary estimates, she added.
The amount Palm Beach property owners will actually pay could change, once the town, the county, the school board and other taxing authorities finalize their tax rates. Those rates are typically adopted by the end of September.
Here are a few things to know about the so-called “Truth in Millage,” or TRIM, notices set to arrive in mailboxes shortly.
Palm Beach property values are up — but by how much?
Palm Beach’s estimated taxable property values jumped 10.6% to $32.15 billion for the new tax year, up from $29.08 billion last year. As is typical, the 2023 estimates were actually higher than the actual values finalized last November, when the town’s taxable values clocked in at $28.89 million.
Jacks’ latest figures were based on “market conditions” as of Jan. 1 of this year, according to a statement that accompanied the property-value estimates finalized in late June.
How does a property’s total market value fit into the tax picture?
Before the appraiser’s office figures a property’s taxable value, it assigns a total market value to the property. That value is the starting point before any homestead exemptions, tax caps and other discounts get figured in to determine the final taxable value.
In Palm Beach, the estimated “total market value” of real estate — including houses, condominiums, co-operative units and commercial buildings — has jumped 10.6% to $54.68 billion in a year-over-year comparison. The figures are based on “market conditions” as of Jan. 1 each year, according to Jacks’ office.
Countywide, the combined estimated market value of properties jumped by about 5.65%, year over year, from $486.6 billion to $514 billion, according to Jacks’ office. That’s an increase of about $27.5 billion.But by the time the final figures for 2023 were compiled, the countywide market value for the tax rolls had settled at $485.98 billion.
What about tax emptions?
For residential property owners who take a homestead exemption — and thus declare their homes to be their primary residences — their annual tax increase will be capped this year by state law at 3%, according to a statement on the property appraiser’s website.
That so-called “value cap” limits tax increases to 10% for non-homesteaded properties.
The notices in the mail also will include preliminary tax rates from the county, municipalities and other agencies with taxing authority.
There’s also information about each authority’s budget hearing, “so that you are empowered to participate in the process of setting your tax rates,” Jacks wrote in a newsletter on the property appraiser’s website.
In addition, the just-mailed notices include a section detailing charges for so-called “non-ad valorum” assessments, such as governmental services such as solid-waste disposal, drainage, street lighting and other items.
What if a property owner doesn’t agree with a valuation?
The notices give taxpayers — and their accountants and wealth managers — a chance to review the values assigned to their properties for accuracy.
Jacks urged taxpayers who have questions or concerns about the notices to contact her office as soon as possible to discuss the situation.
Those taxpayers who believe the market value of their properties is inaccurate or missing an exemption have until Sept. 16 to appeal through the state-authorized Value Adjustment Board.
How do taxing authorities use the estimates from Jacks’ office?
The taxable-value estimates are used by Palm Beach officials and those at other entities — including the county commission and the school board — to help figure their budgets and set final property tax rates for the coming fiscal year.
The Palm Beach Town Council, for instance, held a budget workshop in mid-July at Town Hall.
At that meeting, the council unanimously passed a tentative tax rate that would keep the town’s tax rate the same as last years’ rate.
The proposed municipal tax rate of $2.61 per $1,000 of taxable value would result in non-homesteaded property owners seeing an increase on their tax bills of $179 for every $1 million of their property’s value.
The taxes will help fund the town’s proposed $116.7 million budget for the new fiscal year.
The town typically gets to keep a little less than 20% of the total tax revenue generated by its properties. The rest goes to other taxing authorities.
The proposed budget and tax rate will be finalized at two state-required public hearings, which are tentatively set for Sept. 11 and Sept. 19.
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Portions of this story appeared previously in the Palm Beach Daily News.
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Darrell Hofheinz is a USA TODAY Network of Florida journalist who writes about Palm Beach real estate in his weekly “Beyond the Hedges” column. He welcomes tips about real estate news on the island. Email dhofheinz@pbdailynews.com, call (561) 820-3831 or tweet @PBDN_Hofheinz. Help support our journalism. Subscribe today.
