What to know: Estimated tax bills to be mailed to Palm Beach property owners

Palm Beach real estate owners — and their counterparts throughout the county — will soon learn what they might shell out for local property taxes in the new tax rolls.

And “might” is the operative word.

On Friday, Palm Beach County Property Appraiser Dorothy Jacks’ office will mail preliminary tax-bill estimates to taxpayers.

The notices will reflect Jacks’ best guess at this point about tax bills, based on the estimated values her staff has assigned to every taxable property in the county.

“It’s not a bill, but it’s got a lot of good information about where your property taxes are going to be later this year,” Jacks said in a video posted on her office’s website.

The amount Palm Beach property owners will actually pay could change, once the town, the county, the school board and other taxing authorities finalize their rates in time for final tax bills to be mailed by Nov. 1. Those rates are typically adopted by the end of September.

Here are a few things to know about the so-called Truth in Millage, or TRIM, notices set to arrive in mailboxes shortly.

Palm Beach property values are up — but by how much?

Palm Beach's estimated taxable property values jumped 13.73% to $29.08 billion for the 2023 tax year, up from $25.57 billion last year. As is typical, the 2022 estimates were actually higher than the actual values finalized last November, when the town's taxable values clocked in at $25.52 million.

Jacks’ latest figures were based on “market conditions” as of Jan. 1, according to a statement that accompanied the property-value estimates finalized in late June.

According to the latest estimates from Jacks’ office, taxable values countywide jumped about 13.7%, from $255.33 billion to $290.28 billion, in a year-over-year comparison.

Latest estimates: Property appraiser estimates Palm Beach's overall values rose 21% over last year

How does a property's total market value fit into the tax picture?

Before the appraiser’s office figures a property's taxable value, it assigns a total market value to the property. That value is the starting point before any homestead exemptions, tax caps and other discounts get figured in to determine the final taxable value.

In Palm Beach, the estimated “total market value” of real estate has jumped 21.29% to hit $49.45 billion, up from $40.77 billion a year ago, according to Jacks’ office. The figures are based on “market conditions” as of Jan. 1 each year, according to Jacks’ office.

Countywide, the combined estimated market value of properties jumped by about $82 billion, year over year, from $404.32 billion to $486.6 billion.

What about tax emptions?

For residential property owners who take a homestead exemption — and thus declare their homes to be their primary residences — the annual increase in their property's assessed value will be capped this year by state law at 3%, according to a statement on the property appraiser’s website.

That so-called “value cap” limits the jump in assessed value to 10% for non-homesteaded residential properties.

The notices that will go out Friday also will include preliminary tax rates from the county, municipalities and other agencies with taxing authority.

“These rates are only estimates that can, and often are, altered at public hearings. The information to attend these meetings is also included so that you can make your voice heard,” Jacks said in a statement on her website.

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What if a property owner doesn’t agree with a valuation?

The notices give taxpayers — and their accountants and wealth managers — a chance to review the values assigned to their properties for accuracy.

“If you feel that the market value of your property is inaccurate or missing an exemption, you have until Sept. 12 to appeal through the Value Adjustment Board," Jacks wrote.

She also urged taxpayers who have questions or concerns about the notices to contact her office as soon as possible.

How do taxing authorities use the estimates from Jacks’ office?

The taxable-value estimates are used by Palm Beach officials and those at other entities — including the county commission and the school board — to help figure their budgets and set final property tax rates for the coming fiscal year.

The Town Council, for instance, held a budget workshop in mid-July at Town Hall.

At that meeting, the council unanimously passed a tentative tax rate that would keep homesteaded residents of Palm Beach from seeing any property-tax increase from the town for the coming fiscal year.

The proposed municipal tax rate of $2.61 per $1,000 of taxable value would result in non-homesteaded property owners seeing an increase on their tax bills of $179 for every $1 million of their property’s value.

The taxes will help fund the town’s proposed $104.8 million budget for the new fiscal year.

The town typically gets to keep a little less than 20% of the total tax revenue generated by its properties. The rest goes to other taxing authorities.

The town budget and tax rate will be considered again at a meeting on Sept. 12 before the final adoption, which is expected on Sept. 21.

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Darrell Hofheinz is a USA TODAY Network of Florida journalist who writes about Palm Beach real estate in his weekly “Beyond the Hedges” column. He welcomes tips about real estate news on the island. Email dhofheinz@pbdailynews.com, call 561-820-3831 or send him a message on X @PBDN_Hofheinz. Help support our journalism. Subscribe today.

This article originally appeared on Palm Beach Daily News: What to know: Tax-bill estimates headed to Palm Beach property owners