Miami Beach Property Values Overall Increased Slightly in 2020

Susan Askew
Susan Askew

Miami Beach Property Values Overall Increased Slightly in 2020:

City’s projected budget gap gets smaller as a result

The 2021 Preliminary Certification of Taxable Values released by the Miami-Dade County Property Appraiser’s office shows Miami Beach’s total taxable property values increased 0.3 percent in 2020. Though far less than the City needs to balance its upcoming FY 2022 fiscal budget, it’s still a bit of good news after June estimates showed an overall decline of 0.2 percent.

The Certified Taxable Values increased from $41.7 billion to $41.9 billion year over year. Existing property values declined 0.2% or $91.9 million while new construction values added $215.6 million. Property values run with the calendar year, while the City’s budget year runs from October 1 to September 30. 

At the City’s budget retreat last month after the first estimates were released, Miami Beach CFO John Woodruff told Commissioners a projected $6.2 million gap in the FY 2022 budget is “driven by the property values.” In order to balance the budget, the City needed a 3.1 percent increase in values. 

In a letter to the Mayor and Commissioners, City Manager Alina Hudak wrote the new figures mean “an increase of approximately $2.3 million over the General Fund property tax revenue projections” based on the initial estimates provided at the budget retreat “thus reducing the projected Non-COVID-19 shortfall from $6.2 million to $3.9 million for FY 2022.”

In addition to the now $3.9 million gap in “permanent” funding based on property taxes, the upcoming budget year is expected to have an additional $19.5 million temporary, COVID-related gap but an anticipated $22 million in American Rescue Plan Funding is projected to cover that. Because the City is required by law to start the fiscal year with a balanced budget, Woodruff will work with the Mayor and Commissioners over the coming months to find ways to cover the $3.9 million shortfall.

Countywide, taxable value of existing properties increased 2.5% and with new construction the taxable value increased 4.2%.

“We are seeing a very mixed market this year,” Property Appraiser Pedro Garcia said in releasing the numbers. “Despite the economic uncertainty COVID-19 has created for many commercial property owners, single family values have continued to increase.”

Though COVID impacted values in 2020, a trend analysis showed growth of property values in Miami Beach significantly slowed before the pandemic. The report from consulting firm ICF indicated that while overall assessed values grew citywide between 2012 and 2019, the “growth rate has slowed notably since 2016.”

To view the 2021 taxable property values by municipality, click here.

To search for your individual taxable property value, click here.

Hudak’s Letter to Commission is here.


Photo: Shutterstock.com
 

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