How Does the County Property Appraiser Value My Property?

How does the County Property Appraiser arrive at the value for my property annually?

To find the value of a property, the Appraiser must first know the use and condition of the property, what properties similar to it are selling for, what it would cost today to replace it, how much it takes to maintain, what income it may produce, and other factors affecting its value.

The market value statute contains a list of 8 factors which the Appraiser must at least consider regarding each property.

Considering these factors, the Property Appraiser assesses the property’s value. The three approaches to value are:

#1. Comparable Sales (Market) Approach - One way to assess the property’s value is to find properties like yours, located in your neighborhood, which have been sold recently. According to the State Department of Revenue, the Appraiser should NOT use sales which occur after January 1 of the tax year in question.

Selling prices of comparable properties, however, must be carefully analyzed in order to get an accurate indication of the applicability vis-a-vis your particular property.

#2. Cost Approach - A second way is based on how much money it would take, at current material and labor costs, to replace your property with one just like it. If your property is not new, the Appraiser must also determine how much it has depreciated.

#3. Income (Economic) Approach - A third approach is used if you own property that provides rental income. These include apartment buildings, retail uses, offices, and warehouses. Here the Property Appraiser must consider actual and market operating expenses, insurance, maintenance, and the return most people would expect to get on the particular type of property.
What causes your home’s assessed value to change? Property tax is based upon the value of your property. When the market value of your property changes, so does your appraised value.
A property’s value can change for many reasons. The most frequent cause of a change in value is a change in the market.

As older neighborhoods are discovered and gentrified by new buyers, prices increase as the neighborhood becomes more popular. In a recession, larger homes may stay on the market for a longer time, more affordable homes phase into demand, and their prices rise accordingly. In a stable neighborhood, with no extraordinary pressure from the market, inflation may increase property values.

If you were to increase the total market value of your property by adding a swimming pool, additional bedroom, extra feature or square footage or other the appraised value would increase proportionately. Similarly, should your property’s value be decreased by hurricane, fire or other calamity, the appraised value would decrease to reflect the downward impact of such damage on the market value of the property.

State law requires the Miami-Dade County to appraise property at 100% market value. This usually translates to 85 - 90% of gross purchase price, after statutory adjustments, including household goods and costs of sale.

The Florida Department of Revenue by law is responsible for the overall supervision of assessment and collection of taxes statewide. The Department conducts an in-depth audit of the tax roll every other year to ensure compliance. If the levels of assessment do not comply with law, the tax assessment roll will not be approved.

What steps should the taxpayer take if he or she feels his property tax assessment exceeds market value or is discriminatory as compared to similar properties in a homogeneous area or neighborhood?

A Notice of Proposed Taxes (TRIM--Truth in Millage--notice) is mailed to all property owners throughout Florida between the second and fourth weeks of August annually.

The notice states the assessed value of the property, the exempt value, and expected tax bill, depending on whether the proposed budgets are approved by the various taxing authorities, i.e., millage-setting entities. These include the county, the municipality (if any), water management distrtict and any special taxing districts.

Note well that any Value Adjustment Board petition--a/k/a tax appeal--must be FILED within 25 days of the MAILING of the Notice of Proposed Taxes.

Dyring this period of 25 calendar days after the mailing of the notice, the Appraiser’s office will provide property owners with an explanation of their assessed value. This is called the conference or open roll period.

If your opinion of the value of your property differs from the Property Appraiser's, you may visit the Appraiser's office and discuss the matter. If you have information to show that the appraised value is above the market value of your property, a review will be conducted .

The review can address the following:

• verification of your property record information ;

• review of assessmeny methodolgy used to value your property;

• determination whether the property qualifies for any exemptions;

• appeal process;

• comparison with values of similar properties in your neighborhood.

After talking with theProperty Appraisal representative, if you still find a significant difference between the assessed value and what you belive your property’s market value is, you may file a petition to be heard by the Value Adjustment Board, typically represented by an experienced independent appraiser--not a department employee--serving as special magistrate.

When you receive your assessment notice in mid- or late-August, read it for instructions about deadlines and filing procedures. If you need clarification, call the Property Appraiser’s office. Be sure you understand and follow instructions. A missed deadline or incorrect filing can cause an appeal to be dismissed.

Deadlines are also crtical regarding the submission of documentary evidence in advance of hearing after you timely file your appeal.

An assessment appeal is an attempt to prove that the estimated market value of your property is either inaccurate or unfair. You are required to present evidence supporting your estimate of market value to the Value Adjustment Board.

The Value Adjustment Board has no jurisdiction or control over taxes or tax rates. Its only function is to hear evidence as to whether petitioned properties are assessesd in excess of market value.

If such is the case, the Board has the authority to reduce the appraised value. They cannot change your appraised value based on hardship or any other such other reason. The Board also hears appeals of of exemption denials, both homestead and charitable. Agricultural classification applications which are denied in whole or in part are also appealable to the Value Adjustment Board.
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Daniel A. Weiss has over 26 years experience as a Florida property tax attorney. Daniel Weiss was named in the 2007 Annual Edition of the South Florida Legal Guide as one of the top lawyers in the practice area of Real Estate - Land Use, Zoning & Environmental.
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