Florida’s window for 2023 property tax savings closes soon

Property tax assessments for both real and personal property are increasing for 2023

According to reports produced by the Florida Department of Revenue, the total market values (called “just” values) of real and personal property in the state increased by 17% overall between January 1, 2022 and January 1, 2023.

For real property, the Florida Department of Review’s preliminary assessment numbers indicated double-digit increases in almost every county. Miami-Dade and Broward Counties saw just slightly higher increases this year than last. Lee County values skyrocketed between 2021 and 2022 but increased more modestly this year as many properties are still recovering from damage caused by Hurricane Ian. Value increases in Orange County and Pinellas County are also more moderate this year than last.

Real Property “Just Value” Increases

Source: Florida Department of Revenue. Note: increases reflect overall increase in value for all real property in the county, not average per-property increases

Are the “just value” increases supported by the market?

Analysis of sales transactions is a critical component of market value determination. With the rise of inflation and interest rates, the volume of both residential and non-residential sales dropped substantially in 2022 and 2021. For 2023, Florida assessors’ values were determined based on 20-30% fewer sales than in the prior year.

Sales transaction volumes

Source: Florida Department of Revenue

Between Q1 2022 and Q1 2023, Altus’ valuations of commercial properties indicated increasing values in some sectors but decreases in others. For both the Tampa and Miami CBSA (Core Based Statistical Area), the average values per square foot of the apartment and industrial buildings we appraised increased, while office and retail values dropped. The magnitude of the change in values was substantially different for each city and each sector.

Figure 1 - Average change in appraised values PSF, Q1 2022 vs Q1 2023, Miami and Tampa CBSAs

Source: Altus Research *based on a limited number of appraisals produced, and not necessarily representative of all properties in the market.

Personal property

Personal property is all property held by a business that is not land and building. The Florida Department of Revenue definition is as follows: “Tangible Personal Property (TPP) means all goods, chattels, and other articles of value (excluding some vehicular items) capable of manual possession and whose chief value is intrinsic to the article itself. Inventory and household goods are excluded.”

As the value of tangible personal property depreciates over time, if a business holds the same assets year over year, all else being equal, the value of those assets should decline. This year, most assessed values are higher, due to increases in trend factors used by the assessors. These factors do not account for all economic, physical, or functional depreciation. Does the assessed value of your personal property reflect what a purchaser would pay for it? If not, you should consider filing an appeal.