Lucy – unfortunately, I do not have the median savings for long-time Coral Gables residents. But your question raises an important point – who is paying for and who is benefiting from this estimated $2.6M property tax cut proposed by Mayor Lago. The $2.6M property tax cut is based on a 2% cut of the estimated 2024-2025 ad valorem taxes of $129.4M (p. 57 of the proposed budget representing 48.8% of Coral Gables annual general revenue). The aggregate estimated property tax value in Coral Gables is $24.5B (p. 5 of the proposed budget). Page 20 of the budget states that 43% of the property in Coral Gables is used for residential. Accordingly, 57% is not used for residential but rather is used for office, retail or warehouse space or represents land under development.
This $2.6M tax cut will be paid by all residents of Coral Gables because the City will have less funds to provide essential local services such as public school education, road maintenance and emergency services and safety to residents.
The people and companies that benefit from this $2.6M tax cut are not limited to residents – it benefits anybody who owns property in Coral Gables whether or not they reside in Coral Gables. And there are many developers that own property (but do not reside) in Coral Gables.
For example, the founder of the real estate developer of the Villages at Coral Gables (and many other Coral Gables real estate developments) does not have his homestead in Coral Gables as of January 1, 2024 per the Miami-Dade Property Appraiser. Page 20 of the budget lists principal taxpayers as a percentage of taxable value. The list includes (a) 251 S Dixie LLC at 1.15%, (b) Agave Plaza Trustee LLC at 1.02%, (c) Merrick Park LLC at 0.84%, and (d) 1350 S. Dixie LLC at 0.48%. 1350 S. Dixie is controlled by a person that gave $1,000 to each of Mayor Lago and Alex Bucelo for their election campaign on February 1, 2023. The 2023 tax bill for 1350 S. Dixie was $2.02M so a 2% tax cut is a $40,409 benefit in exchange for $2,000 in campaign contributions. The 2023 property tax bill for Agave Plaza was $3.2M, and it would get a tax cut of over $63,500. The $104,000 tax cut provided to these 2 land owners is 4% of the aggregate $2.6M property tax cut!
In addition, there are Coral Gables residents that do not pay property taxes. For example, the residents of The Palace at Coral Gables do not pay property taxes – they pay a flat rate regardless of increases or decreases in property taxes – see https://www.palacecoralgables.com/calc.html
Laguna Living, LLC and Century Crystal Group, LLC (2 companies controlled by former developer Sergio Pino) each gave $5,000 on March 20, 2024, to Mayor Lago’s PAC – Accountable Coral Gables, Inc. – to promote his agenda. Real estate developers give money to Mayor Lago, and this tax cut is a way for him to repay those gifts. It is contrary to Mayor Lago’s closing statement on his May 10th email – I remain committed to always placing our residents first. This tax cut places real estate developers first over residents.
I am hopeful that the Commission will reject this proposed 2% property tax cut that helps real estate developers but hurts Coral Gables residents who would suffer from a smaller budget causing reduced safety and services.
Commissioner Anderson stated 5 minutes into her Podcast that "the appreciation of homes [has caused] exponential increases in property values which has tremendously increased the amount of money coming into the City's coffers." Florida law caps increases in the assessed value of homestead property at the lower of 3% or the CPI (F.S. Sec. 193.155(1)(a)). The increasing home value of existing Coral Gables residents HAS NOT EXPONENTIALLY INCREASED CITY REVENUE.
Mayor Lago's proposed 2% ad valorem tax cut provides 10 times more benefit to a resident with a home that has an assessed value of $10 million (likely a new Coral Gables resident) than a resident with a home that has an assessed value of $1 million (likely a long-time resident). This proposed 2% tax cut provides a significantly larger economic benefit to new residents of Coral Gables purchasing luxurious mansions (or developers owning property in Coral Gables) than existing residents with modest houses. Maybe that helps him raise political contributions - but it is not good for the majority of Coral Gables residents.
I propose that the Commission focus on increasing pay for new police officers and fire fighters to attract City employees and address resident safety rather than a 2% ad valorem tax cut that significantly benefits new wealthy residents more than long-time Coral Gables residents. The Commission's primary tasks should be (A) resident safety and (B) providing services to residents.
I am hopeful that Commissioner Anderson will review her position on this proposal.
Lucy – unfortunately, I do not have the median savings for long-time Coral Gables residents. But your question raises an important point – who is paying for and who is benefiting from this estimated $2.6M property tax cut proposed by Mayor Lago. The $2.6M property tax cut is based on a 2% cut of the estimated 2024-2025 ad valorem taxes of $129.4M (p. 57 of the proposed budget representing 48.8% of Coral Gables annual general revenue). The aggregate estimated property tax value in Coral Gables is $24.5B (p. 5 of the proposed budget). Page 20 of the budget states that 43% of the property in Coral Gables is used for residential. Accordingly, 57% is not used for residential but rather is used for office, retail or warehouse space or represents land under development.
This $2.6M tax cut will be paid by all residents of Coral Gables because the City will have less funds to provide essential local services such as public school education, road maintenance and emergency services and safety to residents.
The people and companies that benefit from this $2.6M tax cut are not limited to residents – it benefits anybody who owns property in Coral Gables whether or not they reside in Coral Gables. And there are many developers that own property (but do not reside) in Coral Gables.
For example, the founder of the real estate developer of the Villages at Coral Gables (and many other Coral Gables real estate developments) does not have his homestead in Coral Gables as of January 1, 2024 per the Miami-Dade Property Appraiser. Page 20 of the budget lists principal taxpayers as a percentage of taxable value. The list includes (a) 251 S Dixie LLC at 1.15%, (b) Agave Plaza Trustee LLC at 1.02%, (c) Merrick Park LLC at 0.84%, and (d) 1350 S. Dixie LLC at 0.48%. 1350 S. Dixie is controlled by a person that gave $1,000 to each of Mayor Lago and Alex Bucelo for their election campaign on February 1, 2023. The 2023 tax bill for 1350 S. Dixie was $2.02M so a 2% tax cut is a $40,409 benefit in exchange for $2,000 in campaign contributions. The 2023 property tax bill for Agave Plaza was $3.2M, and it would get a tax cut of over $63,500. The $104,000 tax cut provided to these 2 land owners is 4% of the aggregate $2.6M property tax cut!
In addition, there are Coral Gables residents that do not pay property taxes. For example, the residents of The Palace at Coral Gables do not pay property taxes – they pay a flat rate regardless of increases or decreases in property taxes – see https://www.palacecoralgables.com/calc.html
Laguna Living, LLC and Century Crystal Group, LLC (2 companies controlled by former developer Sergio Pino) each gave $5,000 on March 20, 2024, to Mayor Lago’s PAC – Accountable Coral Gables, Inc. – to promote his agenda. Real estate developers give money to Mayor Lago, and this tax cut is a way for him to repay those gifts. It is contrary to Mayor Lago’s closing statement on his May 10th email – I remain committed to always placing our residents first. This tax cut places real estate developers first over residents.
I am hopeful that the Commission will reject this proposed 2% property tax cut that helps real estate developers but hurts Coral Gables residents who would suffer from a smaller budget causing reduced safety and services.
What is the median savings for the typical long time resident with a lower millage rate. Has that been calculated?
Commissioner Anderson stated 5 minutes into her Podcast that "the appreciation of homes [has caused] exponential increases in property values which has tremendously increased the amount of money coming into the City's coffers." Florida law caps increases in the assessed value of homestead property at the lower of 3% or the CPI (F.S. Sec. 193.155(1)(a)). The increasing home value of existing Coral Gables residents HAS NOT EXPONENTIALLY INCREASED CITY REVENUE.
Mayor Lago's proposed 2% ad valorem tax cut provides 10 times more benefit to a resident with a home that has an assessed value of $10 million (likely a new Coral Gables resident) than a resident with a home that has an assessed value of $1 million (likely a long-time resident). This proposed 2% tax cut provides a significantly larger economic benefit to new residents of Coral Gables purchasing luxurious mansions (or developers owning property in Coral Gables) than existing residents with modest houses. Maybe that helps him raise political contributions - but it is not good for the majority of Coral Gables residents.
I propose that the Commission focus on increasing pay for new police officers and fire fighters to attract City employees and address resident safety rather than a 2% ad valorem tax cut that significantly benefits new wealthy residents more than long-time Coral Gables residents. The Commission's primary tasks should be (A) resident safety and (B) providing services to residents.
I am hopeful that Commissioner Anderson will review her position on this proposal.