The Lee County property appraiser told Cape Coral City Council Wednesday that although market, or \u201cjust,\u201d values are showing a small decline, taxable valuation is basically flat.<\/p>\n
Lee County Property Appraiser Matt Caldwell discussed the tax roll that the city uses to determine its budget, as does Lee County and the School District of Lee County.<\/p>\n
\u201cIt is developed by our office and based on Jan. 1 of each year,\u201d Caldwell said of the statutory date of property value.<\/p>\n
The Appraiser\u2019s Office looks at who owns the property, the condition of the property and character of use of the property to determine the value. If a property undergoing development is not completed by Jan. 1, the extra value is not included in the current year\u2019s tax roll, but the following year.<\/p>\n
\u201cBy the time they get their tax bill, it\u2019s 11 months in the mirror,\u201d Caldwell said.<\/p>\n
Early estimates are provided by June 1 of every year which gives the city the top line number \u2014 the number developed for taxing authorities to begin their budget planning, he said.<\/p>\n
The official estimate is released on July 1, where a more refined number is presented.<\/p>\n
\u201cSome years it changes substantially. Some years it does not,\u201d Caldwell said. \u201cWe are halfway through our process of analyzing the market from last year. We spend these six months digging through, combing through sales and lease transactions that happen the previous year in Lee County. That is relatively easier where you have a wide number of properties that are highly similar.\u201d<\/p>\n
He told council that the city has a lot of single-family homes, 250,000 parcels, which are located on similar lots with similar characteristics.<\/p>\n
\u201cLikely, what I will share with you in terms of early estimate \u2014 it probably won\u2019t change between today and June 1 because at this point we are able to run our automative models and push through,\u201d Caldwell said.<\/p>\n
The just value is the market value, the top line number for the taxing entities to use.<\/p>\n
\u201cThe difference between market value and what just value means \u2013 you are not allowed to be taxed on nonreal estate consideration, most transactions include a broker for example. We have to deduct the non real estate transactions that is what the just value represents,\u201d Caldwell said.<\/p>\n
Just value is showing a slight decline, between 2 and 3%, year over year he said.<\/p>\n
\u201cTaxable value is at the end of that process,\u201d Caldwell said. \u201cAll the properties that are not homesteaded, so your commercial properties and rental properties they are subject to a 10% cap in terms of year-over-year assessment.\u201d<\/p>\n
With a 3% decline, only those properties coming on the tax roll this year, then the balance of commercial properties that may have a cap between their just value and what they have built up over the years.<\/p>\n
\u201cYour assessed value can never be higher than the just value,\u201d Caldwell said. \u201cThe vast majority of your parcels are homesteaded.\u201d<\/p>\n
On a countywide scale, Lee County has 550,000 real estate parcels of which 225,000 are homesteaded.<\/p>\n
\u201cThe city of Cape Coral is probably higher as a percentage in terms of homestead properties,\u201d Caldwell said.<\/p>\n
Homesteaded properties \u2014 those that are owner occupied \u2014 have 3% Save Our Home cap and $50,000 deduction. <\/p>\n
\u201cWhile our just value is showing a small 2-3% decline, our taxable value is basically flat.\u201d<\/p>\n
What that means is there are a number of properties that have a significant cap and they will continue to move up at either 3 to 10%, he explained.<\/p>\n
\u201cAs long as their assessment cap is lower than their just value they are going to grow. So that blended new construction, first-year homeowners that were probably at just value last year will probably come down with the just value. When you have 30-year homestead folks that have a significant cap they are going to move up to 3%. If you own a commercial property for more than 10 years they are going to go up to 10%.\u201d<\/p>\n
When those are blended together, the overall valuation is essentially flat year over year.<\/p>\n
For Cape Coral, new construction was at $1.6 billion just value to come onto the tax roll, compared to about $1 billion this year.<\/p>\n
\u201cMight be a little bit more in that category because folks have to go through and clear the permits hanging over, but I don\u2019t expect an enormous change at that number, at least at the level it would significantly shift the amount,\u201d Caldwell said.<\/p>\n