By Mary Hladky
Keeping with longstanding practice, Boca Raton’s property tax rate likely will remain nearly unchanged for the fiscal year that begins Oct. 1.
The proposed FY 2026 tax rate is $3.66 per $1,000 of taxable property value, or 1 cent less than the current $3.67 per $1,000 rate.
That amount allows city officials to say they are decreasing the rate, although the decline is a negligible 0.2%. City officials have long prided themselves on keeping the tax rate low.
Residents owning a home with a taxable value of $450,000 would pay $1,649 in city taxes.
The fire assessment fee for residential properties, which is also included on property tax bills, will remain unchanged at $155. The fire assessments for commercial and industrial properties, which are based on the size of the buildings, also will stay the same.
Although the tax rate remains stable, most property owners will see higher tax bills because taxable values in the city increased 7.5% this year.
To avoid a hike for the average property, the city would have to lower its millage rate to $3.49 per $1,000 of taxable property value, an amount known as the rollback rate.
And even though going to the rollback rate would provide the city an extra $2.5 million from new construction that has been added to the tax rolls this year, city officials say that isn’t enough for a growing city — its population is now 101,000 — that needs to hire more employees, buy more equipment, upgrade facilities and pay the increased cost of materials and supplies that have risen due to inflation. The city also is under pressure from residents to provide high-quality services.
Most homeowners are shielded from the full effect of the increased values because state law caps the taxable value increase for homesteaded properties at 3% a year. Non-homesteaded properties are capped at 10%.
In outlining the tax rate and budget to City Council members on July 14, Deputy City Manager and Chief Financial Officer Jim Zervis noted that the city’s taxable values rose to $40.2 billion this year and new construction added to the tax roll totaled $729 million. Both are higher than in any other Palm Beach County city or town.
Next year’s proposed general fund budget is $254.9 million, up from this year’s $247.4 million. About half of the higher amount is due to salary, pension and cost-of-living increases.
A public hearing on the tax rate and budget is tentatively set for Sept. 8 at 6 p.m. at the city building at 6500 Congress Avenue.
The tax rate and budget will be finalized at the end of September.
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