Proposed county budget would raise taxes

Property values rose 10 percent countywide, meaning most property owners will pay more, even if the tax rate remains unchanged.

Palm Beach County commissioners ushered in the budget season July 2 by setting the county’s maximum tax rate at the same level as last year, $4.50 per $1,000 of taxable value.

Why that’s important: It means most property owners would pay more in taxes. Commissioners can still lower the rate but have little power to raise it.

At $4.50, the county would raise $1.4 billion in property taxes, $125 million more than last year, a 9.5 percent hike. 

If the county rolled back its tax rate to be revenue neutral, as defined in state law, the rate would be $4.16 and bring in $106.8 million less. 

Zoom in: The owner of a homesteaded $201,500 home, the countywide median assessed value, would pay $27 more in county property taxes next year if the rate remains unchanged, the county said.Subscribe

The tax rate would support adding 33 employees to bring the county workforce to 3,642, including 11 new positions in facilities, six in parks and four in public safety. It also covers the sheriff’s $952 million budget, which adds 16 positions to total 4,505.

Details of the county’s $8.99 billion proposed budget can be found here. 

Booming values: Property values rose 10 percent countywide, meaning most property owners will pay more, even if the tax rate remains unchanged. County Administrator Verdenia Baker warns that cutting the rate too much now could endanger the county when the housing boom subsides. 

Of note: Commissioners approved a revenue-neutral reduction in the tax rate for the Jupiter Fire-Rescue taxing district. The town cited rising taxes last year when it decided to pull out of the district in three years and start its own fire department. 

Other agencies, such as the school district and city governments, contribute to the total tax bill. They’ll be setting maximum rates this month as well.

What they’re saying: Vice Mayor Maria Marino, who championed a 5 percent rate cut last year, noted that the commission can still reduce the rate before September budget hearings.