Miami Taxes Stay Flat, But Bills May Rise
The proposed overall millage rate in the City of Miami, used to calculate property tax bills, will remain unchanged for the fiscal year that begins Oct. 1.
The city commission on July 28 set the proposed overall millage rate for fiscal year 2022-2023 at 7.99 mills.
It includes general operating millage of 7.6665, and debt service of 0.3235, reflecting no adjustments from the current fiscal year.
The city’s proposed budget for the new year was released in July by Mayor Francis Suarez and City Manager Art Noriega.
Mayor Suarez referred to the millage rate holding steady in his cover letter with the proposed city budget for 2022-23, and the influence of Covid-19.
“For our residents, we are cutting your millage rate to the lowest rate in the history of Miami, and unlike the past, we are doing it while maintaining fiscal restraint, investing in our reserves, and preparing for the future,” he said.
“First, let me thank you – the residents of Miami – for creating the current conditions to present this Proposed Operating Budget and Multi-Year Capital Plan for the fiscal year 2022-23. All of you worked tirelessly throughout the pandemic, adapted your businesses and your lives to rapid change, and showed determination, creativity and an entrepreneurial spirit that has transformed Miami into a model for the world.
“This budget cuts taxes, meets our challenges, leverages our progress, and builds for our future. It is a budget that we can all support, adopt, and use to build a better Miami for everyone,” Mayor Suarez wrote.
Final approval of the millage rate for 2022-23 is expected in late September and will mark the fourth consecutive year with no increase in the rate.
For comparison, the city’s overall millage rate in fiscal year 2011 was 8.6441 mills, and was 8.03 in fiscal 2017-18 and 2018-19.
The General Fund includes revenues from a variety of sources, including fees, fines, and state and local taxes. Property tax revenue is expected to comprise 50.8% of total General Fund revenues in the coming year, and represents the largest source of funding for general operations.
In the proposed 2022-23 General Fund Budget of $965,281,000, property tax revenue amounts to about $490.6 million.
Florida law governs the setting of millage rates by municipalities, adoption of budgets, and the timeframes required of each.
It requires that the City of Miami advise the property appraiser of its proposed millage within 35 days of the July 1 certification of value so that the information can be included in the notice of proposed property taxes mailed to property owners in August.
Even with the city’s overall millage rate remaining unchanged, many property owners can expect to pay a bit more in overall property taxes due to an increase in assessed value at the county level.
According to the Miami-Dade County property appraiser, this year the city had an overall property value increase of 8.1%, before new construction.
Last year the increase in value was 1.9%.
The same state statute governs the timeframes for the first and second budget hearings.
The city commission’s vote in late July set the first budget hearing for 10 a.m. Sept. 10 and the second budget hearing for 5:05 p.m. Sept. 22. The meetings will be held in the City Commission Chambers at City Hall, 3500 Pan American Drive.
Effectively, the tentative millage adopted represents the upper limit for the millage rates to be considered in September.
The commission may lower the general operating millage rate at either of the two budget hearings, but effectively cannot raise it above what is adopted in July. State law allows for this possibility, but it cannot be practically achieved within the timeframes provided in state law.
Source: Miami Today