This year, high inflation will also impact homeowners in Florida

DORAL, FL – High inflation this year will bring an increase in the cap for home valuations in tax notices to be sent home in August that up until recently meant a limit of 2% or less.

However, now that inflation hit 7% by the end of 2021, Florida’s 2022 cap on increases to taxable home values rose to the maximum allowed of 3%. That’s more than double last year’s 1.4% cap, according to a Miami Herald report.

This increase translates into more money that homeowners need to have for tax payments. In the face of this reality, the report made by the Herald included a chart for Miami-Dade and Broward counties that considers the fact that inflation is the key factor for most homeowners, since Florida ties increases in a primary residence’s assessed value to the yearly rate of inflation or 3%, whichever is lower.

In 2021, it was 1.4% and this year started with the inflation rate at 7%, so the 3% cap applies. But how much of a difference does a 3% cap make? The news report made the calculations based first on the average 2021 property-tax bills under the 2021 1.4% cap, then estimated the same bill if the 3% cap had been in effect instead.

For the City of Doral, it was like this: 2021 w/ 1.4% of $4,498, an estimated of $4,580 with the 2021 w/ 3% which results in a change of $82.

 

Photo by: Unsplash.com

 

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