If you are a property owner, then you likely are familiar with millage rates. Essentially, millage rates are the tax rates used to calculate property taxes. This rate equals the amount homeowners must pay for every $1,000 of a property’s assessed value. As an example, the current millage rate at the county level in Palm Beach County is 4.7815 per $1,000 of taxable value. Therefore, if you have a home with an assessed value of $400,000, your county property tax portion would be calculated as follows:
$400,000/$1,000 = $400 x 4.7815 = $1,912.60
It is important to note that this simply addresses the millage rate at the county level. In addition, you can expect to have other taxing authorities such as the city or town that you live in to also have their respective millage rates. For more information about the millage rate and tax roll information, visit the Palm Beach County Property Appraiser site at this link.
Palm Beach County commission votes to decrease millage rates
On Tuesday, July 11, 2022, the Palm Beach County commission voted 4 to 2 in favor of decreasing the current millage rate from 4.7815 per $1,000 of taxable value to 4.7150. With this said, this topic will be discussed once again by the commission in September when it conducts two public hearings to adopt a budget for the 2023 fiscal year. By law, this rate can only be lowered and not raised. Should this reduction in the millage rate be ultimately approved, it would be the first time in 12 years that we have seen a reduction in the Palm Beach County millage rate.
What does this mean for homeowners?
Overall, this potential drop in the Palm Beach County millage rate should not impact the typical homeowner very much. The main reason for this is because most savings that would be realized by a lower millage rate will be offset by higher assessed property values. In fact, taxable property values have increased by 15% in Palm Beach County over the past year. Therefore, the median home value in the county for next year is $375,950. Using this median figure, the owner of a median priced home in Palm Beach County would essentially save less than $30 per year in county taxes due to the lower millage rate.
With another 40-year high in inflation being hit this week, it is understandable why the commission would consider offering some relief in the county millage rate. With this said, most of these savings will be offset by higher assessed property values. Moving forward, the county commission has public hearings set for September 13th and 20th to adopt a budget for the 2023 fiscal year that begins on October 1st. A final vote on the county’s millage rate will be taken then.
It is important for homeowners to be educated on property taxes and other costs associated with home ownership. Our real estate experts at Live South Florida Realty, Inc. can assist you with any questions that you may have. Contact Natasha at Live South Florida Realty, Inc. today! Are you looking to buy or sell property in South Florida? Download the free Live South Florida Realty, Inc. Florida Home Search app today!