Palm Beach Shores Property Tax Analysis PRESENTER Tim Wilmath, - - PowerPoint PPT Presentation

Palm Beach Shores Property Tax Analysis

PRESENTER

Tim Wilmath, MAI

Chief Appraiser Palm Beach County Property Appraiser’s Office

Palm Beach Shores Values

Just Change in Year Value V.alue Value Taxable 2010 $571.r 707, 7&0 $545,835,387 $519,152,014 2011 $554.r 94 7, 786 $533,1781248 . $5n7,4S31154

• 2.3%

2012 $537, 7851 825 $515, 613,855 . $4891 9 551586

• 3.4%

2013 $563, 619,948

$538, 595,007 $513

,4261

715 4.8% 2014 $581, 193.r138

$549, 3

25

.r 920

$523

.r 9 82.r 3

64 2.1% 2015 $501,141.r073 $558114313 74 $5321 013,127 1.5% 2016 $626.r 650, 502 $577.r 759.r 728 $550.r 945.r 74

7 3.6% 2017 $569.r8091 4SQ $005, 2951358

$5 74, 622, 29

6

4.3%

2018 $700.r 79 O

.r827

$6391

815.r153 $608.r83

7.r 534 5.0%

Palm Beach Shores Values

Approximately 345 properties in Palm Beach Shores have a homestead exemption and are protected by the 3% CAP Everyone else is protected by the 10% cap.

Homestead and Palm Beach Shores

63% of single family, and 24% of condos in Palm Beach Shores have homestead and those properties will increase by 3% or the change in CPI, whichever is less.

The Department of Revenue publishes the change in CPI every year and notifies Florida Property Appraisers

• f the new limitation.
• You can find the annual

change on the DOR’s website at: https://floridarevenue.com/ property/Pages/DataPortal.a spx

Homestead and Palm Beach Shores

Palm Beach Shores Values

86% of Palm Beach Shores taxable value comes from residential, condo and timeshare properties.

Palm Beach Shores Values

Palm Beach Shores Single Family Residential

These are 2019 sales, which will be used for the 2020 tax roll.

*Note: this does not include all late-year sales

When valuing property, we target an “assessment to sales ratio” of 85%. So if a property sells for $1,000,000 we want the assessment to be about $850,000 or 85% of sale price. By law, we cannot adjust sales only. We must raise the population of properties at the same rate we raise sales.

Palm Beach Shores Single Family Residential

The Department of Revenue evaluates our tax roll each year to ensure our assessment to sale ratios and other statistics are acceptable.

Palm Beach Shores Single Family Residential

Palm Beach Shores Condominiums and Townhomes

Condos - This table shows 2018 sales used for the 2019 assessments.

These are 2019 sales in the Mayan Towers Condo

Palm Beach Shores Condominiums and Townhomes

Although the four sales indicated a ratio of 77% - a closer look shows one sale at 60% ratio while two others exceed 85%. Something is going on with that 60% ratio property that requires research and analysis. Renovation? Floor #? View? Once all sales are researched a decision about values is made.

Palm Beach Shores Condominiums and Townhomes

Palm Beach Shores Timeshares

Prior Parcel ID Name Value Market Value Difference 54434226120030000

PB Shores Resort

$63,849,060 $87,314,800 -$23,465,740

'

54434226130050000 Marriott Ocean Pointe ; $32,439,780 $31, 733, 710 $706,070

'

• 54434226130020000

Marriott Ocean Pointe $30,301,012 $30,100,917 $200,095

'

54434226130040000 Marriott Ocean Pointe $30,301,012' $30,100,917

'

54434226130010000 Marriott Ocean Pointe , $29,499,760 $29,305,051

'

54434226130030000 Marriott Ocean Pointe $29,499,760 $29,305,051 $194,709

'

54434226080000000 Sand Dunes Resort $1,282,220 $1,203,180 $79,040

'

54434226130030010 Marriott Ocean Pointe $250,000 $250,000 $0

'

• 54434226130010010

Commercial Condo $191,100 $191,100 $0

We are required by Statute to assess timeshares based

• n sales of

timeshare periods

Palm Beach Shores Timeshares

F.S. 193.033 also directs the Property Appraiser how to assess timeshares

Palm Beach Shores Timeshares

Palm Beach Shores Resort 260 units x 52 weeks = 13,520 total weeks The price for one week varies depending on the unit type, bedroom/baths and time of year. Our office must assign a value to each of the 13,520 weeks.

Palm Beach Shores Timeshares

Palm Beach Shores Resort In 2019, the sale prices of unit/weeks in Palm Beach Shores dropped approximately 25-30%. As a result, the taxable value dropped from $87,314,800 to $63,849,060, a 26.8% drop. This reduction offset the typical increase in Palm Beach Shores that would have occurred if not for this decrease.

Palm Beach Shores Timeshares

Step 1 – Our office obtains deeds on timeshare properties from the clerk of the court. A deed is recorded for each unit/week sold.

Palm Beach Shores Timeshares

Step 2 – We import all the deed data electronically so that our staff can identify the Unit, # of weeks sold, and time of year the sale occurred. We received almost 1,000 deeds from the Palm Beach Resort in 2018.

Palm Beach Shores Timeshares

Step 3 – We sort the sales by unit type (bedrooms/baths) and by sale date to identify price by season.

Palm Beach Shores Timeshares

Step 4 – We aggregate the sales by season, type of sale (annual or biennial), and unit type, and prices. (Note: Biennial are sales of weeks every other year instead of every year)

Palm Beach Shores Timeshares

Step 5 – We assign an assessment to each unit/week. That’s a total of 13,520 unit/weeks. Or put another way, every unit has a separate value for each of it’s 52 weeks.

Palm Beach Shores Timeshares

Step 6 – The assessments for each unit/week are combined to arrive at a total assessment for each unit type and ultimately the entire parcel.

Palm Beach Shores Timeshares

Timeshare customers can purchase “points” instead of units/weeks and use those points at Marriott resorts, including Marriott’s Ocean Pointe. If you want to stay for a week in September in an oceanfront 3 bedroom unit, it will cost you 2,900 points. But how does that relate to the value of a unit in Ocean Pointe?

Palm Beach Shores Timeshare Points

Palm Beach Shores Timeshare Points

Just like the sale of unit/weeks, the sale of Marriott points are recorded on deeds (but in Orange County). The points are not assigned to any particular unit/week or even a specific resort.

Palm Beach Shores Timeshare Points

We review the sales and determine the “price per point” based on thousands

• f transactions.

As this chart shows, the average price per point is about $12.00.

In order to make a unit available for points, Marriott must transfer the unit/week into a trust. We track those deeds so we know which unit/weeks are “points” designated versus price designated.

Palm Beach Shores Timeshare Points

Over the past 10 years, Ocean Pointe has re-purchased 2,826 Unit/weeks for Point sales. That represents 15.9% of the property. Sales of points tend to be higher than sales of unit/weeks.

Palm Beach Shores Timeshare Points

Palm Beach Shores – Vacant, Commercial & Multifamily

In addition to Residential, Timeshares, and Condos, there are 5 other types of properties on Palm Beach Shores

Small Multifamily properties

Small multifamily are properties with 9 units or less. They are valued the same way as single family residential. There are 43 of these property types in Palm Beach Shores.

111 Cascade Lane – Parcel # 54-43-42-27-04-000-2520

Apartments

Apartments are properties with 10 units or more. They are valued using sales and an income approach. There are 15

• f these property types in Palm Beach Shores.

201 Inlet Way 1 – Parcel # 54-43-42-27-04-000-0090

Vacant Land

Vacant land is valued based on sales of vacant sites. When no sales are available, a technique known as the Allocation Method is used.

Sandal Lane– Parcel # 54-43-42-27-04-000-3730

“Other” properties

There are 19 properties in Palm Beach Shores that are either HOA related, government owned or institutional. They are tax exempt, but we still estimate a market value.

Cascade Lane – Parcel # 54-43-42-27-04-000-6510

Commercial properties

For 2019, there were 8 properties classified commercial in Palm Beach Shores: 1. Seaspray Inn 2. Sailfish Marina (main parcel) 3. Sailfish Marina (Randy’s Landing parcel) 4. Sailfish Marina (parking parcel) 5. CannonSport Marina 6. Islander Grill and Tiki Bar (PB Shores Resort) 7. Buccaneer Steakhouse 8. Palm Beach Shores Resort Lobby

Palm Beach Shores Marina Values

Note: Sailfish Marina has been re-platted and five parcels were joined together. We will review and work for 2020.

Palm Beach Shores Marina Values

Florida Constitution –Section 4 – Article VII (1) The assessment of the following working waterfront properties shall be based upon the current use of the property: a. Land used predominantly for commercial fishing purposes. b. Land that is accessible to the public and used for vessel launches into waters that are navigable. c. Marinas and drystacks that are open to the public. d. Water-dependent marine manufacturing facilities, commercial fishing facilities, and marine vessel construction and repair facilities and their support activities.

Palm Beach Shores Marina Values

To estimate the value of “working waterfront” land, we review sales of sites that were purchased specifically for marina use.

Palm Beach Shores Marina Values

To estimate the value of marina slips, we first review rental rates throughout the county for slip use.

Palm Beach Shores Marina Values

After estimating slip rental rates, we apply an income approach to determine the value of the slips.

Palm Beach Shores Marina Values

We value marina improvements using the same rates we apply to other similar properties in the county.

Summary

• History of Assessed Values PBS
• Lost value due to Caps and Exemptions
• Homestead Cap calculations
• PBS Values by Property Type
• Residential – Sale ratio analysis
• Condo and townhomes
• Timeshares
• Small Multifamily
• Apartments
• Vacant Land
• HOA, Govt., Institutional
• Marinas – Working Waterfronts

Palm Beach Shores Summary

Thank You!

Tim Wilmath, MAI Chief Appraiser twilmath@pbcgov.org