A Surprising Twist on Property Taxes

Would you have thought property taxes in Collier County would be less than in Lee County? I didn’t think so until my research department investigated. When comparing the millage rate of 16.0133 in unincorporated Lee County (may vary by district) to the rate of 12.1698 in unincorporated Collier County, ad valorem property taxes in Collier are 32% less.

Conversely, Collier County’s impact fees are 12% more expensive than in Lee County if one were to build a 20,000 square foot general industrial building. That impact fee savings gets eroded by the higher taxes paid after the building gets finished.

Using a $60 per square foot value, a 20,000 square foot building would cost $1.2 million. Let’s suppose the County assessed the property at the same $1.2 million value. Using the millage rates stated above, multiplied per $1,000 of assessed property value equates to ad valorem property taxes of $4,612 more per year in Lee County than in Collier County.

Now let’s suppose that 20,000 square foot building was constructed for general industrial use. One initially pays $13,438 more for impact fees in Collier than in Lee (may vary by district). So in less than 3 years the additional money paid in impact fees in Collier is repaid by the lower ad valorem property taxes. Divide the $13,438 additional impact fees paid in Collier by the $4,612 additional taxes paid in Lee to determine that it takes 2.91 years for repayment.

If you’re looking at where to do business, these are only two of the factors you should consider, but important factors they are. Add this to the multitude of other factors to reach your best decision.

 

PROPERTY TAX COMPARISON  (unincorporated areas)

Millage Rate

Lee

Collier

Difference

%

Total

16.0133

12.1698

3.8435

32%

(ad valorem multiplied per $1,000 of assessed property value)

Example

Lee

Collier

Difference

%

$1,200,000

$19,215.96

$14,603.76

$4,612.20

32%

assessed value

 

 

 

 

IMPACT FEES COMPARISON  (unincorporated areas)

General
Industrial

Lee

Collier

Difference

%

Per Sq Ft
New Construction

$4.76

$5.44

-$0.67

-12%

Example

Lee

Collier

Difference

%

20,000

$95,263.20

$108,700.80

-$13,437.60

-12%

Sq Ft

 

Change-of-Use fees are temporarily waived