Taxable values in Lee County increase by nearly 13% statewide

July 5, 2024

In Fort Myers Beach, a community devastated by Hurricane Ian, real estate prices have increased by nearly 50%.

The final tax roll for Lee County shows an even larger increase than the preliminary roll, at 47.99%, up from an estimated 36.37% a month ago.

The final report was filed with the Florida Department of Revenue on July 1, one month after the preliminary list was published, as required by state law.

Even though the numbers have changed somewhat, the stark contrast between Fort Myers Beach and Sanibel Island is still most noticeable.

On Sanibel, the decline in property values has narrowed from -10.44% to -8.95% with more data being analyzed in recent weeks. But it’s still a decline.

This is a reflection of the rebuilding efforts after Hurricane Ian, with Fort Myers Beach much further along in its recovery. More properties have changed hands and there has been more new construction in town, driving up market and tax values. The town’s fair – or market – values rose to over $5.34 billion in 2024, up from about $3.6 billion last year.

Much of the increase is due to new construction, now valued at more than $660 million, and includes countless damaged properties that have been repaired and put back on the tax rolls, from houses and condos to hotels and restaurants, Matt Caldwell, Lee County property appraiser, said in an interview last month.

“That’s a huge part of it,” he stressed.

While values are up sharply from last year, they are still nearly $1 billion below where they were before Ian arrived in September 2022. Before the devastating storm left the island in ruins with a storm surge up to 4.5 meters high, they were over $6.26 billion.

“These numbers show that Fort Myers Beach is on the road to recovery, but there is still much work to be done. With property values increasing, our staff is working diligently to ensure we do not have to raise taxes for our residents. I am confident we can do that,” said Dan Allers, the city’s mayor.

Caldwell predicts that next year, Fort Myers Beach could be back to where it was before Ian from a “tax base” perspective, with total taxable value increasing more than 54% from 2023 to 2024, topping $3.97 billion.

The estimated value of a property takes into account all tax limits or ceilings. From this, the taxable value is determined by deducting all allowances, which serves as the basis for the property tax calculation.

Although the result was positive, Sanibel’s tax value increased by only 1% to approximately $4.66 billion.

Many of the resorts, condos and other rental properties there remain closed because repairs are still needed.

“They have a long way to go to restore their resort and rental profile there on Sanibel. Hopefully next year there will be a more positive story to tell,” Caldwell said.

Earlier: Real estate prices on Fort Myers Beach are soaring as the city rebuilds after Hurricane Ian

How did others fare?

Overall, property values in Lee County increased 5.86% from 2023 to 2024, including the unincorporated area and its cities, towns, and villages.

Taxable values increased by 12.8% nationwide.

The market value and the tax value increased more than assumed in the preliminary estimate.

Matthew Simmons, managing partner of Maxwell, Hendry & Simmons, a Fort Myers-based firm specializing in commercial and residential real estate appraisals and consulting, said the price increase was due to the “sale of numerous structurally damaged properties and the removal of the property appraisal cap.”

“For properties that have been owned for a long time, the 3% cap on home ownership and 10% on other properties add up over time and result in a taxable value that is well below fair value,” he continued. “Now that many of these properties are changing hands for the first time in years, the assessment is reset and that capped benefit disappears.”

Given the general increase in tax values, district and local governments can collect more money without increasing the tax burden or can reduce or increase their tax rates. The relevant decisions will be made by the respective local governments in the coming months.

This year, the fair value of all real estate across the county rose to over $215.96 billion, up from about $204 billion in 2023. This includes new construction, which is valued at nearly $6 billion.

Here’s how market values have changed throughout the year in other parts of the county:

In Fort Myers, they rose 3.77% to over $20.6 billion.
In Cape Coral they rose by 1.16% to around 46.52 billion dollars.
In Bonita Springs they rose by 7.38% to over $26.42 billion.
In Estero, they rose 5.08% to about $14.48 billion.

New construction increased market value by over $337.9 million in Fort Myers, $1.7 billion in Cape Coral, $301.5 million in Bonita and nearly $102.3 million in Estero.

Although the recovery on Sanibel was slow, construction still resulted in an increase in value of over $189.58 million.

All fire districts, even Sanibel, saw their values increase. They operate independently and collect their own share of property taxes based on assessed values within their boundaries.

What’s next

Now the assessor’s office is waiting for decisions from tax authorities, including counties and cities as well as fire districts, on whether they expect to reduce, maintain or increase their tax rates.

In August, Truth in Millage (TRIM) notices are sent out containing the tax proposals for the next year.

The notice lists the dates for public hearings and the contact information of each taxing authority in case property owners wish to provide input on the proposed tax rates before the final vote.

It also gives property owners time to challenge their assessments if they feel they are unfair.

The Florida Department of Revenue must approve the list before it is certified. Annual property tax notices are sent out by November 1 each year.

How did others fare?

What’s next

Related Posts

About The Author

reggie