How does Palm Beach County value Mar-a-Lago, other local Trump properties for taxes?

With former President Donald Trump facing millions of dollars in legal bills to defend himself against federal and state charges in four criminal cases, his pending property-tax obligations in Palm Beach County might seem like a barely noticeable blip on his balance sheets.

Even so, the billionaire presidential candidate and his ownership companies could be billed as much as $1.84 million in 2023 taxes for his nine taxable county properties, including his famous Mar-a-Lago Club, according to a new round of estimates released Friday.

And in Trump's case, the tax-bill estimates from the Palm Beach County Property Appraiser are lower than the ones released a year ago. The former president’s tax estimates released last year totaled $2.16 million, an amount eventually reduced to $1.7 million when the 2022 tax rolls were finalized last fall.

By law, the tax rolls must be submitted to state authorities each year by Nov. 1. The rolls reflect tax rates and fees adopted each September by municipalities, the county, the school district and other taxing authorities. The estimates give officials an idea of how much tax revenue they might receive as they figure their budgets for the coming year.

The dollar amount of the tax estimates mailed Friday to all county taxpayers could change after the taxing entities finalize their budgets next month.  The appraiser’s office calculates property values as of Jan. 1 each year.

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The drop in Trump’s estimated taxes reflects a calmer real estate market than the one that upended the county in 2021. For her new estimates, Property Appraiser Dorothy Jacks estimated that overall property values in the county saw an annual jump of 13.36% — a much less dramatic rise than the 31% vault she announced the previous year.

In all, the latest “total market value” of Trump-related properties in the county totals $123.81 million, according to an analysis of the property appraiser's preliminary figures by the Palm Beach Daily News. Of that total, $100.36 million is taxable, the analysis shows.

In addition to his private club in Palm Beach, Trump’s taxable properties in the county include the clubhouse at his Trump International Golf Club near West Palm Beach; the entirety of the Trump National Golf Club in Jupiter; and three houses — plus a vacant parcel next door to one of them — bordering Mar-a-Lago.

What might Trump pay in taxes on Mar-a-Lago, other properties in the town of Palm Beach?

In the town of Palm Beach alone, the combined market value of Trump’s properties is estimated at $89.27 million. But their estimated taxable value is much lower — $69.46 million — thanks to value-assessment caps for non-homesteaded properties and any other discounts that might apply to them, according to Jacks’ office.

Jacks’ team assigned Mar-a-Lago an estimated market value of $37 million and a preliminary taxable value of about $33.4 million, up from $31 million and $30.36 million, respectively, from last year. The property's estimated tax obligation includes property taxes but also fees levied by solid waste authorities and an assessment to help pay for an ongoing project to bury utility lines throughout the town.

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Mar-a-Lago's property includes the landmarked building that houses the club, which opened in the mid-1990s, along with 17.5 ocean-to-lake acres.

Jacks’ staff doesn’t estimate the value of Mar-a-Lago using a traditional formula, which would compare what a similar property would be worth by taking into account nearby sales, the condition of the property and other factors.

Instead, the value is figured using an “income approach,” a process dictated by longstanding deed restrictions that prevents Mar-a-Lago from being redeveloped or used for any purpose other than a club, according to the property appraiser's office. To determine the value, the agency estimates the club’s revenue and expenses and determines its net operating income based on confidential information the club provides. That income is then “capitalized” using a rate that translates it into value.

Trump's other properties in Palm Beach are subjected to a more traditional formula to set their preliminary market and taxable values.

Of the three Trump houses next to Mar-a-Lago, all saw annual jumps of at least $1.5 million in their estimated market values for this year.

The market value of Trump’s beachfront mansion at 1125 S. Ocean Blvd. and its vacant lawn rose from $23 million in last year's estimates to about $24.75 million this year. Last year, the house and adjacent parcel’s estimated tax bill was $308,964, and this year’s estimate hit $324,694.

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A smaller house at 1094 S. Ocean Blvd. was assigned a new estimated market value of $19.96 million, up from $17.98 million a year ago. Preliminary figures show that the house could face a tax bill of $241,589 — based on a taxable value of $12.77 million — versus last year's estimated tax obligation of $225,976.

An even smaller house next door at 124 Woodbridge Road was assigned a preliminary market value this year of $7.56 million, a jump from its estimated $6.27 million a year ago, which included a vacant parcel to the west. That house could be taxed this year at $86,381, according to the latest estimates, compared to the estimate of $76,280 last year at this time.

How much could Trump’s two Palm Beach County golf clubs generate in property taxes?

Elsewhere in the county, the Trump International Golf Club comprises about 274 acres, but only the clubhouse generates tax revenue under a longtime lease agreement Trump negotiated with the county and Palm Beach International Airport.

The clubhouse would be billed $198,255 — figured from its taxable value of $11.44 million — if the latest estimates hold steady. The golf club’s Trump-controlled ownership company pays no property taxes on the two golf courses themselves. Instead, the land is leased for about $1 million a year, records show.

The Trump National Golf Club in Jupiter, meanwhile, is owned by a different Trump-controlled company and its parcels have a taxable value of $19.46 million, including its clubhouse, golf course and an outbuilding, according to the preliminary estimates. The club could generate a total tax bill of $381,328, the estimates show.

In addition to the mailed notices, property owners can view their estimated valuations and proposed tax obligations at the property appraiser's website, pbcgov.org/papa.

Property owners who don’t agree with their valuations can contact Jacks’ office directly or petition the state-authorized Value Adjustment Board for changes. The deadline for filing an appeal is Sept. 12.

Trump has been charged with multiple criminal counts in four cases

Trump is facing myriad criminal charges as a result of four separate cases filed by prosecutors.

In the most recent case, the chief prosecutor in Georgia’s Fulton County on Aug. 14 filed 41 counts against Trump and 18 of his allies. They are accused of trying to steal the state’s electoral votes to keep Trump in power after his loss to President Joe Biden in the 2020 election.

Those charges followed federal charges in South Florida related to Trump’s handling of government classified documents, and in Washington, D.C., related to his alleged efforts to overturn the 2020 election results, which prosecutors say were part of a conspiracy that culminated in the Jan. 6, 2021, violence at the U.S. Capitol.

Trump also faces charges in New York state over an alleged hush money payment to porn star Stormy Daniels.

Trump has pleaded not guilty in the federal and New York cases. A Georgia court has set an Aug. 25 deadline for Trump and his co-defendants to avoid arrest by surrendering voluntarily.

dhofheinz@pbdailynews.com

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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 tweet @PBDN_Hofheinz. Help support our journalism. Subscribe today.

This article originally appeared on Palm Beach Daily News: How does Palm Beach County value Mar-a-Lago, other local Trump properties?