With property tax bills arriving in the mail, some homeowners are wondering why their tax bill went up, even though their property value did not. The explanation is simple in one sense, according to Indian River County Property Appraiser Wesley Davis. The Save Our Homes constitutional amendment passed in 1992 limits the annual increase in property taxes on homesteaded properties to 3 percent or the inflation figure set by the Consumer Price Index, whichever is lower. During the pandemic property boom, the market value of many houses and condominiums on the island and elsewhere in the county increased by 10 percent, 20 percent or even more each year for several years. But the assessed value that property taxes are based on only went up 3 percent annually during those boom years, in accordance with the Save Our Homes amendment, which was put in place to protect homeowners, especially those on fixed incomes, from sudden dramatic increases. That process left a large amount of real estate value unassessed. Even though prices have now leveled off or even fallen slightly in some cases, especially with condominiums, assessed values and property taxes are still catching up with real values. For example, a house that was worth $500,000 in 2019 might be worth $1 million today. But the property taxes have not doubled. They only increased 3 percent each year for a total of 18 percent going into the current tax year. So, even if the house did not gain value in 2025, it still possesses hundreds of thousands of dollars in untaxed value. This requires the property appraiser to raise the assessed value upon which property taxes are based by another 3 percent for the coming year. Property values in Indian River County have been remarkably stable since the peak of the pandemic boom, with most houses only declining slightly in value in the years since then. Condominiums have not fared as well. Increased carrying costs in the form of higher insurance rates and maintenance expenses after the collapse of the Champlain Towers South condominium in 2021 that killed more than 100 people have weighed on condo values. With much higher HOA fees, due to new requirements for engineering inspections, building repairs and reserve funds, along with sky-rocketing insurance rates, some condominiums on the barrier Island lost significant value in recent years and won’t be subject to ongoing property tax increases based on accumulated but unassessed value. Other factors, including a change in the millage rate, also can affect the property tax bill for a house or condo that has not increased in value in the past year. Indian River Shores, for instance, lowered its property tax or millage rate for the 2026-2027 tax year. So even property owners hit with a 3 percent catch-up increase in assessed value may not pay a great deal more because the tax rate applied to the increased value has gone down. At the same time, property tax bills are slightly higher for many county residents for the second year in a row, because the cost of trash removal has been added to the bill. When Truth in Millage or TRIM notices went out in August, Davis’ office received calls and complaints from homeowners wanting to know why their tax bill was going up while the value of their home had not increased. But Davis said most homeowners were satisfied when office staffers explained the math to them. Homeowners who still disagreed with the assessed value of their homes had the opportunity to file an appeal with the county’s Value Adjustment Board, but any such appeal had to be received at the latest by the day after the Labor Day holiday. If no appeal was filed, the assessed value of the home was final and no longer subject to dispute. Non-payment of property taxes is a serious issue. Tax liens put on a property for delinquent taxes can result in a sheriff department’s auction sale.