TAX NEWS - JUNE 2010

Florida Tax: Miami Dade County property tax values drop record 13%

by Yudislaidy Fernandez -- With property prices plunging and little new construction, property tax values that are the basis for tax billings have fallen in Miami-Dade even more steeply than last year, setting a record.

Values dropped the most in 41 years, plunging 13.4% even after last year's 9.5% dive, according to tax roll estimates released Tuesday.

Property Appraiser Pedro Garcia said Tuesday the stall in construction along with foreclosures and short sales are the main contributors to the drop in taxable values. Assessments reflect values as of Jan. 1. The fall is from Jan. 1, 2009.

The county estimates $2.6 billion in taxable value from new construction, off $5.7 billion from last year's $8.3 billion.

But Mr. Garcia says taxable value estimates now are more in line with market conditions.

"I am very sure we are getting very close to the real market values of properties in Miami-Dade," he said.

For three consecutive years, the county's residential and commercial property values have fallenme, this year to the tune of $29 billion. The appraiser's office cited a $21 billion reduction in residential property values — $11 billion for condos and $10 billion for single-family. Commercial — which includes multi-family housing, industrial properties, shopping centers and office buildings — dropped $8 billion.

Mr. Garcia sees values close to leveling off in the residential market but said the commercial market still has a long way to go. Overall, he said, values are finally starting to reflect reality.

"I was telling everybody I was looking for the right values and that is what I keep doing," he said, "and I will not stop until we have the right numbers."