Broward County 2021 June 1st Estimated Taxable Value Breakdown
The Property Appraisers across the State of Florida are tasked annually with estimating the Fair Market Value for all the Real Estate Parcels and Tangible Personal Property Accounts located within their respective jurisdictions. On May 28, 2021, the Broward County Property Appraiser’s Office submitted their June 1st Estimate of Taxable Values to the taxing authorities located within Broward County. This is the first time during the year that each taxing authority receives the estimated taxable value of all the real and personal properties within their respective jurisdiction. These values represent the “Working Values” and are subject to change until the TRIM or Value Notices are sent out in mid-August 2021. You can read the press release and see the aggregated data by following this link.
With the effects of COVID-19 still lingering more than eighteen months after a global pandemic was declared, we now have a clearer picture as to the viewpoint of the Broward County Property Appraiser’s Office of how real estate values were affected as of 1/1/2021. As one may have expected, there are certain property types (use codes) that were more affected by the pandemic than others.
It is no secret that the hospitality industry has struggled with occupancy and average daily rates since the pandemic’s start. Hotels and Motels throughout the country have seen historic lows in occupancy and average daily rates causing valuations to decrease dramatically. Out of all the use codes that are detailed in the chart below, Hotels and Motels were the only property type that saw a real decrease in their Fair Market Value per BCPA.
Though there was a year-over-year decrease in the overall market value of both vacant residential and vacant industrial properties, this is not a reflection of the overall market, rather the reduction in value for properties considered vacant due to new construction of residential and industrial properties.
When focused on the major use codes that make up the bulk of the tax base within Broward County; Single Family homes, Multifamily properties, Condominiums, Hotels/Motels, Commercial property, and Industrial Property a clear division can be seen in the data. The pandemic seems to have affected Hotel/Motel and Commercial properties (Office, Retail, Restaurants, etc.) in a negative way, while Single Family homes, Multifamily properties, Condos, and Industrial properties actually saw higher increases in value year-over-year than in 2019 to 2020. As shown in the below chart, the red line indicates the percentage change in value from 2020 to 2021, while the light blue line represents the percentage change in value from 2019 to 2020. Hotel/Motels overall saw a nearly 10% decrease in Fair Market Value and, while Commercial properties overall saw growth of 1.10%, it was much less than in the previous calendar year.
There are many factors to consider when reviewing this generalized data; the type of properties that are included in each general use code, the locations, the ages and much more. What is presented in the above chart and grid, is the aggregation of all real property parcels categorized as a specific use code per the Department of Revenue guidelines for assessing real property in the state of Florida. This data is very useful to provide an overview of the health of the real estate market as of 1/1/2021 for each of the major general property types (use codes), however, a breakdown of the commercial properties would be needed to truly analyze the changes in value for specific property types e.g., Retail centers, Office Buildings or Restaurants, etc.
On a more granular level, how does the Property Appraiser’s Office arrive at the Fair Market Value for each parcel that makes up this data?
Each year, with a valuation date of January 1st, the property appraiser examines and analyzes the state of the market for all property types. They will review income and expense information for income producing properties, analyze current construction costs and review and analyze the sales of comparable properties that have taken place in the prior calendar year. All this information is input into their Computer Assisted Mass Appraisal (CAMA) system and is used to assist the property appraiser’s highly skilled residential and commercial appraisers in valuing each real property parcel. Certainly, no easy task. Especially with the lingering effects of COVID-19 hanging over the values of all the properties.
While the Property Appraiser’s Office is highly skilled in their annual valuation process, mass appraisal is not perfect, nor should it be expected to be perfect when valuing over 750,000 real property parcels. With property values on the rise amidst the challenges presented by the COVID-19 pandemic, this is where it becomes imperative to have a skilled property tax consulting firm assisting with the review of your annual Fair Market Values to ensure values are fair and equitable.
The amount you will pay in property taxes during 2021 is directly based on the County’s opinion of the Fair Market and Assessed Value for your property. The Property Appraiser’s Office is in the process of finalizing their 2021 Fair Market Values now with their “Working Values” being shown on their website. If you feel the value of your property is too high or just wish to have an independent review, we encourage you to call Nick Mau at (954) 906-8066. You may also email Nick at email@example.com.
FirstPointe Advisors, LLC is a full-service ad valorem tax service provider. We provide you with the experience of a national firm with a regional focus. At FirstPointe Advisors, LLC, you come first. We strive to provide innovative solutions to your property tax needs. With our experience and first-class client service, we will create an easy review and appeal process for you. Our experience spans across Florida’s 67 counties in representing owners of residential and commercial properties.