Question & Answer
Why our millage rates higher than Boca Raton residents?
One of the main reasons, our millage rates are higher then some of our surrounding neighborhoods is due to the fact that Deerfield Beach's property values are lower than those other cities. For example, the screen shot below is from Zillow.com and it shows the estimate of the values of the homes pictured. These are the homes that surround Deerfield Beach Island. The homes on the bottom left are in Deerfield Beach whereas the homes in the upper right are in Boca Raton. The 11 Deerfield Beach homes, which are some of the most expensive in our neighborhood, average 1 million dollars, while the 15 Boca Raton homes average 7.31 million dollars in value. If the millage rates were equal the city of Boca Raton would receive more the 7 times the tax revenue for essentially the same amount of land. This puts Deerfield at a severe revenue disadvantage. The disadvantage is even greater when you compare other properties along Hillsboro river with their Boca Raton neighbors.
How do we correct?
One of the ways to reduce our millage rate is to increase the property values in our city. To do this we have to increase demand, by attracting business to our city that individuals want to live near. Whether it be their employer, shopping establishments, restaurants and/or entertainment venues. Increased property values spread the tax burden on the residents more evenly. Remember we pay taxes on the purchase price for not what your home is worth today. So, if you purchased your home in 2000 and paid $150,000 for it your taxes are based on that sale price, not the $350,000 the home is worth today.
(If you are homesteaded your property taxes can go up, the lesser of the annual increase in the consumer price index (1.1% last year), or 3%). So, while you are paying taxes on your home's assessed value of $150,000 (minus 50,000 homestead exemption), your neighbor who purchased his home last year for $320,000 is paying double. Therefore, the city is receiving twice as much revenue from your neighbor then it is from you.
So, as you can see, the more individuals who purchase homes in Deerfield the more revenue the city gets from these new home owners and the easier the ability to reduce the millage rate for all Deerfield Beach citizens, therefore reducing all of our taxes.