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Florida Property Tax News: Taxpayers Cautioned Against Putting Themselves in Harm's Way by Representing Themselves at Property Tax Appeal Hearings

Taxpayers Cautioned Against Putting Themselves in Harm's Way by Representing Themselves at Property Tax Appeal Hearings

Florida Property Tax News: Tangible Personal Property

Tangible Personal Property Taxes

The following blog article answers FAQs concerning the arcane area of tangible personal property tax assessment in Florida.

The following list of frequently asked questions is answered below.

What is tangible personal property (TPP)?

What is intangible personal property? Is it subject to taxation?

Is residential personal property subject to taxation?

What if my residential personal property in a non-homestead condominium unit I own is in a hotel/condominium rental pool and is sometimes used by me and sometimes
used by renters?

Who is required to file a tangible personal property return?

Why was I sent a tangible personal property return?

How can I obtain a tangible personal property return (Florida Department of Revenue Form DR-405)?

What if I was sent more than one tax return?

What if I have no tangible personal property to report?

Should I file if I'm no longer in business?

Must I report tangible personal property that belongs to someone else, or which I furnish to another business?

Is there a minimum value that I do not have to report?

What are the filing deadlines? What are the non-filing penalties?

What if I buy or sell an existing business during the year?

What if I do not file a return?

What if I don't agree with the assessed value that appears on my TRIM Notice of proposed property taxes?

Can I file an appeal of my tangible personal property taxes even if I filed no tangible personal property tax return?

Do we need to file a return if we are a church, school or non-profit group?

Is my return confidential or will my competitors be able to view and obtain copies of it under Florida's Public Records Act?

ANSWERS TO THE FAQS

WHAT IS TANGIBLE PERSONAL PROPERTY (TPP)?

According to section 192.001, Florida Statutes, "tangible personal property" means all goods, chattels, and other articles of value capable of manual possession and the chief value of which is intrinsic to the article itself.

"FF&E"--furniture, fixtures and equipment--is colloquially thought of as the equivalent of tangible personal property. This is a misnomer--or at least a temiological inexactitude--since some fixtures become part of the real estate to which they are attached and are assessable as real estate, and not as tangible personal property.

While the same tax rates apply to both real property and tangible presonal property in any given jusrisdiction in Florida, misclassiciation as between real property and tangible personal property can be a basis for striking the offending portion of the assessment from the tax roll for the year in question.

Inventory held for resale and household goods for the owner's personal use are exempt from taxation.

While real property is not subject to taxation as tangible personal property, many items used along with real property, such as cleaning and mowing equipment and machinery, computers, office supplies, furniture, signage, exterior lighting, alarm systems and leasehold improvements are taxed as personal property.

The comprehensive guidelines for the assessment of tangible personal property are determined by the Florida Legislature and are enforced by the Florida Department of Revenue (DOR). The DOR is the state agency responsible for the overall supervision of assessment and collection of taxes for all 67 counties in Florida, under section 195.027, Florida Statutes. Click here to view the DOR Tangible Personal Property Appraisal Guidelines.

WHAT IS INTANGIBLE PERSONAL PROPERTY? IS IT SUBJECT TO TAXATION?

According to section 192.001, Florida Statutes, "intangible personal property" means money, all evidences of debt owed to the taxpayer, all evidences of ownership in a corporation or other business organization having multiple owners, and all other forms of property where value is based upon that which the property represents rather than its own intrinsic value.

Effective January 1, 2007, intangible personal property tax in Florida is repealed.

Intangible personal property and tangible personal property are sometimes confused by lay people--even by people you think should know better.


WHAT IS RESIDENTIAL PERSONAL PROPERTY?

If you own residential rental property, what would normally be household goods if you were living there such as stoves, refrigerators and furniture becomes taxable tangible personal property which must be reported each year. All tangible personal property must be reported, even if it has been fully depreciated or has been "expensed" on the books of the taxpayer.

WHAT IF MY RESIDENTIAL PERSONAL PROPERTY IN A NON-HOMESTEAD CONDOMINIUM UNIT I OWN IS IN A HOTEL/CONDOMINIUM RENTAL POOL AND IS SOMETIMES USED BY ME AND SOMETIMES USED BY RENTERS OF THE UNIT?

At least one Legal Special Magistrate of the Miami-Dade County Value Adjustment Board has ruled that such tangible personal property is not subject to taxation. The Property Appraiser did not sue to overturn this ruling. If you have any questions about this or other property tax assessment issues, contact a Florida property tax consultant.

WHO MUST FILE A TANGIBLE PERSONAL PROPERTY RETURN?

Any person or entity that owns or possesses tangible personal property located in Florida as of the January 1 tax assessment date must file a DR-405 tangible property return with the Property Appraiser in the county where the property is (or was) physically located on the assessment date, January 1 annually.


WHY WAS I SENT A TANGIBLE PERSONAL PROPERTY RETURN?

You either filed a return last year or our office believes you have property that should be reported.

HOW CAN I OBTAIN A TANGIBLE PERSONAL PROPERTY RETURN?

If you did not receive a return in the mail, click here to download a copy of the DR-405 form. Be sure your Federal Employer Identification Number (FEIN) or Social Security Number, and the Property Appraiser's account or folio number appear on the return you file. Contact your County Property Appraiser if you do not know your account or folio number. If you operate under a DBA (Doing Business As) name, indicate the legal name of the entity and the DBA.


WHAT IF I WAS SENT MORE THAN ONE TAX RETURN?

You must file a return for each physical location in each county where you have tangible personal property. You will notice that the account numbers are different on each return. Even if you have sold the business or no longer have tangible personal property at a particular location, you must return the form with an explanation. This will assist the County Property Appraiser in ensuring that you are not assessed for property you have sold, surplused or removed from the county in the preceding year.

WHAT IF I HAVE NO TANGIBLE PERSONAL PROPERTY TO REPORT?

Almost every business owner has some personal property to report, even if it is only supplies, rented/leased equipment or fully depreciated/expensed property. Filing a return with all the particulars will help keep you from being assessed penalty charges or receiving an overestimate by the County Property Appraiser for property or valuations not assessable to you.


SHOULD I FILE IF I'M NO LONGER IN BUSINESS?

If you possessed tangible personal property on January 1 of the tax year, you must still file the return for that year. In Block 9A and the address correction box, explain the date you disposed of the assets and the name and address of the current owner of those assets. Sign and date the return and file it with the Property Appraiser's Office by April 1.

MUST I REPORT TANGIBLE PERSONAL PROPERTY THAT BELONGS TO SOMEONE ELSE, OR WHICH I FURNISH TO ANOTHER BUSINESS?

Yes. Page 2 of the return requires you to list property used in your business which is owned by others. Typical examples are postage meters, telephone systems, copiers, etc. If you own tangible personal property that you lease to others and is typically located in a specific county, you must report this property on Page 1, line 22 of your return.


IS THERE A MINIMUM VALUE THAT I DO NOT HAVE TO REPORT?

No. You must report all tangible personal property. If your resulting tax amount is less than $5, however, you will not receive a tax bill.

WHAT ARE THE TPP FILING DEADLINES? WHAT ARE THE NON-FILING PENALTIES?

Your return must be filed with the office of your local County Property Appraiser on or before April 1 annually (pursuant to section 193.062, Florida Statutes). If you are unable to file your return before April 1, you may file a request for a 30-day extension. Pursuant to section 193.063, Florida Statutes, this request must be filed in a reasonable amount of time BEFORE the April 1 deadline so that the County Property Appraiser may act upon it in a timely manner before the due date.

After April 1, if you did not make a timely request for extension, the County Property Appraiser is required by state law (section 193.072, Florida Statutes) to apply a penalty of 5% per month (up to a maximum of 25%) for late-filed TPP returns, a 15% penalty for unreported property, and a 25% penalty when no return is filed.


WHAT IF I BUY OR SELL AN EXISTING BUSINESS DURING THE YEAR?

Tangible personal property taxes constitute a lien against the property, and are not a personal obligation of the owner. If you buy tangible personal property during the year, you should obtain a copy of paid tax bills for prior years and the seller's return and make an agreeable proration of the current year's taxes. Most title companies do not search the public records for unpaid tangible personal property taxes. You must report the property at your cost rather than your seller's cost. Furnish the County Property Appraiser with any allocation of purchase price documents, including I.R.S. Form 8594 (Allocation of Purchase Price), if the personal property was acquired with other assets. This will make the Property Appraiser's work much easier and will help to produce an accurate and fair market value assessment of your property from year to year after purchase.

WHAT IF I DO NOT FILE A RETURN?

Even if a tax return is not timely filed by April 1, the County Propertyy Appraiser is still required to assess all tangible personal property. He or she will prepare a a best estimate based on similar equipment and assets owned by other similar businesses. The assessment will also include a 25% penalty for non-filing. Thus, it is in the taxpayer's best interest to file a timely return every year, unless you prefer to gamble on the Appraiser's ability to assess property he may never have seen or had reported or returned.


WHAT IF I DON'T AGREE WITH THE ASSESSED VALUE THAT APPEARS ON MY TRIM NOTICE OF PROPOSED PROPERTY TAXES?

Each year, the County Property Appraiser mails during the third or fourth week of August a TRIM Notice of proposed property taxes listing your assessment for that year. If you have any questions about the value, contact your County Property Appraiser to discuss your assessment. If you have information that the appraised value is higher than the market value of your property, the Appraiser will welcome the opportunity to speak with you and review all of the pertinent facts. If, after speaking with the Appraiser, you are still not satisfied, you have 25 days from the August mailing date of the TRIM Notice to file a petition with the County Value Adjustment Board (VAB). This deadline is in September of each year.

Click here for Tips and Information to Florida Property Owners About Impending Upcoming Property Tax Appeal Filing Deadlines for September 2007.

DO WE NEED TO FILE A RETURN IF WE ARE A CHURCH, SCHOOL OR NON-PROFIT GROUP?

If the taxpayer is a church, synagogue, mosque, ashram, temple, school, or other non-profit entity which may be eligible for a total exemption from TPP and/or real property taxes, contact your local Property Appraiser or Florida property tax consultant to learn more about these special exemptions.

To learn more about how to select a property tax attorney, read my article by the same title on wikihow.

IS MY RETURN CONFIDENTIAL OR WILL MY COMPETITORS AND THE GENERAL PUBLIC BE ABLE TO VIEW AND COPY IT?

Pursuant to section 193.074, Florida Statutes, your return is strictly confidential when filed with our office. Interested persons may not obtain a copy of it through Florida's Public Records Act, as it is exempt from public disclosure.

WHAT IF I READ EVERYTHING ABOVE AND STILL HAVE TPP QUESTIONS?

Contact your County Property Appraiser or Florida property tax consultant.

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Mr. Weiss has represented taxpayers in thousands of administrative tangible personal property and real estate tax appeal hearings and has more than 70 published opinions to his credit, including 55 property tax opinions, is co-author of Chapter 64 of the Florida Tax Service 2d, "Agriculture and Other Classified Properties" with Matthew Bender, and a lecturer on property taxation for the National Business Institute. To view Mr. Weiss's most recent Youtube video on property tax appeals in Florida, click here.

Tips and Information on Filing Property Tax Appeals Before September 2007 Deadline

Florida property taxpayers face annual property tax appeal filing deadlines. After a tumultuous legislative special session Florida property taxpayers are turning their attention to appealing their annual property tax evaluations. Confusion reigns because while tax bills may be lower, valuations have risen an average of 15 percent. Tax appeal filing deadlines vary from county to county, but all appeals must be filed within 25 days of mailing of notices of proposed taxes.

PRWeb.com published on Auguest 31, 2007, dateline Miami, Florida, the following press release.


Miami, Florida (PRWEB) August 31, 2007 -- Florida property tax attorney Daniel Weiss offers the following tips and information to residents and business owners about the upcoming deadline for filing property tax appeals in Florida.

25 day filing period -- Weiss cautions taxpayers that all 2007 property tax appeals must be filed with 25 days of the mailing of notices of proposed taxes.

Since this is one of the shortest statutes of limitations imaginable, Florida property taxpayers are advised to exercise their right of appeal swiftly. The 25 days starts to run on the date of mailing of the notice of proposed taxes. No extensions are authorized by statute.

Each of Florida's 67 counties decides when in August to mail taxpayers their notices of proposed property taxes (TRIM -- "Truth In Millage" -- notices). By state law, however, the deadline for filing valuation appeals expires 25 days from the mailing of the TRIM notice.



Filing deadlines may be as early as the first week of September or as late as the last week of September. By state law, each taxpayer's notice of proposed taxes shows the filing deadline at the bottom.

Only valuations -- and not tax bills -- are subject to appeal. Typically, taxpayers look at the "bottom line" and react based on the projected dollar amount of taxes. After a legislative rollback of local government revenues adopted in 2007, many property tax bills in Florida will be lower than 2006. Valuations, however, are an average of 15 percent higher.

This means that even lower-than-usual taxes may be based on higher-than-ever valuations. So remember to determine whether to appeal based on the valuation -- not the dollar amount of taxes to be paid. Be like the commercial taxpayers who are savvy enough to understand that even if their tax bills are lower for 2007, there is still an opportunity to seek to have them reduced even more.

January 1 is the date of assessment in Florida, as it is in many other states. This means that it is the county's responsibility to ascertain the valuation of all properties as of the first of the year. So if you still had Wilma or Katrina hurricane damage unrepaired as of January 1, 2007, and the Property Appraiser (formerly called the tax assessor) did not take it into account, this failure can be the basis of a successful appeal.

Annual appeal as business strategy -- Many commercial property owners make it part of their annual business plan to appeal all property taxes. It's an easy decision, because most property tax consultants offer their services on a contingency basis. Then, if there's no tax reduction, no fee is due.

Many property tax professionals will review assessments at an initial consultation without charge. Take advantage of this opportunity. Interview more than one before you sign a retainer.

Some property owners prefer to retain a property tax consultant who is also an attorney to represent their interests in property tax appeals. This preference assumes that attorneys are better at spotting legal issues and formulating legal arguments. These include the impact of zoning and comprehensive planning regulations on property tax assessments, as well as superior understanding of procedures and exemption and special classification statutes which confer benefits for agricultural use or historic properties.

Other property owners prefer to work with real estate brokers or agents familiar with comparable sales and income and expense ratios in local markets.

If you're not sure whom to retain, do some research online.

The Florida Department of Revenue provides a list of all 67 county Property Appraisers: http://dor.myflorida.com/dor/property/appraisers.html Contact the local County Property Appraiser to ascertain the date of mailing of the notice of proposed taxes or to request a duplicate of any notice not received.

But don't delay. The tax appeal time clock is ticking.

Daniel A. Weiss has over 26 years experience as a Florida property tax attorney. Weiss was named by the 2007 South Florida Legal Guide as one of the top lawyers in the practice areas of both Real Estate - Land Use, Zoning & Environmental and Real Estate - Commercial.
Property Tax Appeals

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Mr. Weiss has represented taxpayers in thousands of administrative tax appeal hearings and has more than 70 published opinions to his credit, including 55 property tax opinions, is co-author of Chapter 64 of the Florida Tax Service 2d, "Agriculture and Other Classified Properties" with Matthew Bender, and a lecturer on property taxation for the National Business Institute.

Florida Property Tax News: Gearing Up for 2007 Property Tax Appeals

What time of year is it? It’s time to get ready to appeal your property tax assessments.

Most owners of commercial property include as part of their business plan the annual appeal of property taxes on both real estate and tangible personal property. It’s an easy decision because most property tax agents offer their services on a contingency basis. If there’s no tax reduction, no professional fee is due. Many professionals will review property tax assessments at an initial consultation without charge. How much more painless could it be?

A word to the wise: the filing deadline for property tax appeals is 25 days after the date of mailing of the notice of proposed taxes (TRIM notice). In Miami-Dade County, all 825,000 notices for real estate assessments will be mailed August 24, 2007. This means that the filing deadline is September 20 this year.

Many professional appraisers after reviewing sales data have concluded that real estate values increased little if at all between January 1, 2006 and January 1, 2007. Yet the Miami-Dade preliminary assessment rolls reflect a 15% increase in value for 2006—exclusive of new construction. The rollback in public revenues enacted by the 2007 Florida Legislature does not affect these valuations.

So remember: check your mail on August 27. If you believe a property tax assessment exceeds market value or is otherwise inaccurate, improper or unlawful, get the ball rolling! As we say at Tannebaum Weiss, “A word from the Weiss is sufficient.”

For more information, consider consulting the following resources authored by this blogger: “Why Should I Hire a Property Tax Attorney for My Property Tax Appeal?”, May 11, 2007 blog entry below and “How to Select a Property Tax Attorney." __________________________________________________________________________________
Daniel A. Weiss has over 26 years experience as a Florida property tax attorney. Weiss was named by the 2007 South Florida Legal Guide as one of the top lawyers in the practice areas of both Real Estate - Land Use, Zoning & Environmental and Real Estate - Commercial. For a free consultation regarding your property, contact Weiss at 866-374-7850.

Florida Property Tax News: Top 10 Questions for the Miami-Dade Property Appraiser

The Miami-Dade County Developers and Builders Alliance asked me to provide 10 questions to be asked at their round table luncheon on property taxes in Miami-Dade County for 2007. What follows is a list of the questions I provided. These were among the questions addressed to the Property Appraiser, Marcus Saiz.

1. WHAT IMPACT WILL 2007 LEGISLATION ACTUALLY HAVE ON TAX BILLS? WILL THEY BE LOWER OR HIGHER?

2. IF PROPERTY VALUES DID NOT INCREASE BETWEEN JANUARY 1, 2006 AND JANUARY 1, 2007, WHY DID THE CITY OF MIAMI REAL PROPERTY TAX ASSESSMENT ROLL INCREASE FROM $34 TO $38 BILLION, EXCLUSIVE OF NEW TAXABLE VALUE?

3. BASED ON SALES THROUGH JUNE 2007, WHAT DO YOU EXPECT TO SEE IN TERMS OF INCREASE, DECREASE, OR STASIS OF TOTAL NEW VALUE ON THE TAX ROLL FOR 2008?

4. WHAT IS THE PROPERTY APPRAISER’S POSITION ON THE INITIATIVE BEING STUDIED BY THE CHARTER REVISION COMMISSION TO CHANGE THE PROPERTY APPRAISER FROM AN APPOINTIVE TO AN ELECTIVE POSITION?

5. HOW MANY OF THE TAX APPEALS FILED ANNUALLY ON VALUE ARE GRANTED?

6. WHY HAS THE PROPERTY APPRAISER CHANGED HIS POLICIES AND PROCEDURES IN THE PAST TWO YEARS IN GRANTING AGRICULTURAL CLASSIFICATION TO PROPERTY OWNED BY DEVELOPERS WHEN THERE HAS BEEN NO CORRESPONDING CHANGE IN THE LAW?

7. WHAT IS THE PROPERTY APPRAISER’S POSITION ON THE HOMESTEAD EXEMPTION ISSUES TO BE VOTED UPON ON THE JANUARY 2008 BALLOT?

8. WHAT IS THE PROPERTY APPRISER DOING TO STAFF PUBLIC SERVICE DESKS FOR THE EXPECTED ONSLAUGHT OF TAXPAYER CALLS AND VISITS WHEN THEY FIND OUT ON AUGUST 25TH THAT ASSESSMENTS ARE UP AN AVERAGE OF 13% FOR 2007 IN MIAMI-DADE COUNTY?

9. WHY DOES THE PROPERTY APPRAISER DISCRIMINATE AGAINST FOREIGN-BORN PARENTS LIVING IN THE HOME IN DENYING HOMESTEAD EXEMPTION WHERE THERE ARE U.S.-BORN DEPENDENT CHILDREN IN THE HOME BUT GRANTS HOMESTEAD EXEMPTION WHERE THERE ARE U.S.-BORN CHILDREN IN THE HOME AND THE PARENTS LIVING IN ANOTHER STATE AND HOLDING LEGAL TITLE TO THE PROPERTY AREN’T EVEN FLORIDA RESIDENTS?

10. WHY DOES THE PROPERTY APPARSIER GRANT CHRITABLE EXEMPTION TO VACANT LAND OWNED BY HABITAT FOR HUMANITY AND OTHER ORGANIZATIONS BUT DENY EXEMPTION TO OTHER AFFORDABLE HOUSING NOT-FOR-PROFITS WHERE THEIR IMPROVED PROPERTY IS IN THE PROCESS OF BEING REHABILITATED WITH COUNTY, STATE AND FEDERAL FUNDS FOR USE AS CHARITABLE, LOW-INCOME AFFORDABLE HOUSING?
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Mr. Weiss has represented taxpayers in thousands of administrative tax appeal hearings and has more than 70 published opinions to his credit, including 55 property tax opinions, is co-author of Chapter 64 of the Florida Tax Service 2d, "Agriculture and Other Classified Properties" with Matthew Bender, and a lecturer on property taxation for the National Business Institute.

How to Avoid Tangible Personal Property Taxes on Furniture, Fixtures and Equipment Acquired With Real Estate

HOW CAN I AVOID PAYING DELINQUENT TAXES ASSESSED ON EQUIPMENT WHILE IT WAS OWNED BY MY SELLER?

Short answer: offer the taxed tangible personal property to the tax collector. In Florida—as in many other jurisdictions--this will put an end to your liability as a subsequent purchaser for value. So if the taxes, interest and penalty owed are greater than the value of the equipment—and the tax collector won’t negotiate with you—consider telling the tax collector to go ahead and seize the property. If the tax collector doesn’t negotiate with you after you make this offer, arrange for him to come and pick up the property, provided he has appropriate court orders and warrants authorizing him to do this.

Discussion and analysis: Assume a laundromat is purchased in 2006. In 2007, the owner is given notice by the tax collector to pay tangible personal property taxes from the year 2000 on the washing machines he purchased along with the laundromat. Is the new owner liable for these taxes even though he didn’t buy the equipment until years after the January 1, 2000 tax assessment date?

The subsequent owner is responsible for paying the taxes, which constitute a lien on the taxed equipment. As an alternative to paying the taxes, the new owner can surrender to the tax collector the taxed property, based on the following briefly-stated analysis.Initially, a tangible personal property tax is "in rem", i.e., against "the thing", or taxed tangible personalty, itself.

By statute, the tax collector first goes to the property itself, in whomsoever's hands it may be found. This is virtually the universal approach to collection of delinquent tangible personal property taxes in the U.S.

For example, in Florida, section 197.413, Florida Statutes, provides the procedure to be followed by the county tax collector in collecting delinquent tangible personal property taxes.In pertinent part, that statute provides that after filing suit and obtaining from the court issuance of a court order for levy and seizure of personal property, and warrants to be served on individual taxpayers, the tax collector may seize property on which taxes are due, even when such "goods" or "chattels" are in the hands of another person.

"Goods and chattels" is a phrase which generally denominates personal property, as distinguished from real property.Subsection (8) of section 197.413 provides as follows:8) A tax warrant issued by the tax collector for the collection of tangible personal property taxes shall, after the court has issued its order as set forth in subsection (6), have the same force as a writ of garnishment upon any person who has any goods, moneys, chattels, or effects of the delinquent taxpayer in his or her hands, possession, or control or who is indebted to such delinquent taxpayer.

The legislature in Florida, as elsewhere, generally provides a strong arsenal of weapons to favor the taxing authorities in the assessment and collection of taxes.The best you can do is to go and reason with the tax collector, and show him that you were not the taxpayer at the time the taxes were levied and that you purchased the property in good faith with no actual notice of the delinquent taxes.

The response of the tax collector may well be that you should have inquired and made sure the taxes were paid at the time you purchased the equipment--just as you would have inquired concerning the tax status of any real property.The only good news here--i.e., if the tax collector does not negotiate some settlement with you at your request--is that once you deliver the property of the delinquent taxpayer to the tax collector levying the warrant, the receipt of the tax collector shall be complete discharge of any obligation you have to the tax collector for those delinquent taxes on the seized property.


The tax collector is authorized to pursue the former owners—but not the present owners--of the taxed property for the difference in unpaid delinquent taxes, penalties and interest.Seizure and sale of personal property are virtually universal enforcement mechanisms for the collection of unpaid and delinquent tangible personal property taxes. This is not unique to Florida. Review the regulations governing your state to ascertain any variations.
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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 areas of both Real Estate - Land Use, Zoning & Environmental and Real Estate - Commercial. For a free consultation regarding your property, contact Daniel Weiss at 866-374-7850 or go to our website:: http://www.tannebaumweiss.com/property_tax.php

Florida Property Tax News: Save 100% on Intangible Taxes

HOW TO SAVE 100% ON YOUR FLORIDA INTANGIBLE PROPERTY TAXES STARTING IN 2007—GUARANTEED!

Yeah, I know you’ve heard guarantees before that turned out not to be worth the paper they’re printed on—or the bandwidth they take up. But this one is a slam dunk. And you don’t have to purchase anything to qualify for it!

The reason is that the savings are conferred by a new statute revoking Florida’s tax on intangibles.

What is intangible personal property?

In case you didn’t know, intangible personal property is property which does not have intrinsic value, but which represents value in another object. Intangibles, which are taxable until the January 1, 2007 effective date of the repealer, include the following:

Stocks
Shares or units of a mutual fund, including money market funds
Ownership interest in a limited liability company
Interest in limited partnerships registered with the Securities and Exchange Commission
Bonds
Loans
Notes
Accounts receivable not arising from your normal course of trade or business.

How can I save 100% on my Florida intangible taxes?

Effective January 1, 2007, there will no longer be any tax on intangibles owned by Florida residents. By enacting House Bill 209, the 2006 Florida Legislature has repealed this tax. The repeal is effective for all taxpayers, including individuals, joint filers, corporations, partnerships and estates.




How much will I save?

For 2006, the tax rate was reduced to $.50 per $1,000 worth of intangibles, also known as 1/2 mill. Before 2006, the tax rate was $1 per $1,000 worth of intangibles, also known as 1 mill. The first $250,000 of total taxable assets are exempt for an individual filer. Thus, for example, on $1,000,000, the tax for 2006 would have been $.50 X 750, or $375.00.


Guarantee

So there’s the guarantee; no need to file any intangible tax returns with the State of Florida, starting in 2007. Now you’ve saved 100% on your Florida intangible property taxes, starting in 2007. Guaranteed. You heard it here first.
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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 areas of both Real Estate - Land Use, Zoning & Environmental and Real Estate - Commercial. For a free consultation regarding your property, contact Daniel Weiss at 866-374-7850 or go to our website:: http://www.tannebaumweiss.com/property_tax.php

Florida Property Tax News: City of Miami Beach Repeats Illegal Dividend to Homestead Property Owners

A few weeks ago, 160,000 City of Miami Beach homestead-exempt property owners received a $300 "dividend" check in the mail.

This repeats, compounds, and mulitplies the illegal rebate of taxes to the same property owners in 2006.

This measure may curry favor with the voters in an election year, but it is flagrantly unlawful, in the humble opinion of this blogger. Interested in whay it is illegal? Read on.

The so-called "dividend" is essentially a tax refund or after-the-fact diminution in the tax rate, made available to only a portion of the population of City of Miami Beach taxpayers. In the alternative, this is a 50% increase in the homestead exmption exclusively for City of Miami Beach homestead taxpayers to the exclusion of residents of each of the other 34 municipalities in the County. Any way you look at it--rebate, exception to the uniform millage rate in the juruisdiction or increased homestead exemption--it violates the state Constitution and is illegal.


To their credit, the City is completely upfront about the differential tax rate. Or at least it was when Mayor David Dermer first introduced this feel-good provision during the budget hearings in September 2005. That was the time of the year when every city and county and school board and water managaement district and every other taxing authtority looked at its budget and set its millage, i.e., tax rate for the year. The budget resolution actually specifies the amount of the slight reduction in millage for this select group of taxpayers eligible for the tax refund.

The only trouble with this measure is that the Florida Constitution mandates a uniform tax rate for each and every taxpayer in the jusrisdiction. Under that standard, it's constitutionally impermissible to levy 23.3218 mills against all the property on the City of Miami Beach EXCEPT homestead property, and then effectively apply to those voters--whoops, I mean taxpayers, of course--a smidgen lower millage rate, ginned up in the form of a "dividend."

Well, this raises the specter of the old philosophical exercise: "what if a tree falls in the forest and there is no one there to hear it? Is there still a sound?" This time, the question morphs into: "what if the City issues an unlawful dividend of $300 to each of 160,000 taxpayers and no one complains about it? Is it still a violation?"

What about homeowners who don't have homestead exemption? And what about the commercial property owners? Did they get anything back? No. But government decisionmaking is all about figuring out where to draw the lines, who gets included and who gets excluded, after all, isn't it?Is it being too cynical to point out that the homestead exemption statute expressly cross-refernces the voters' registration statute? Cynical? Who, me?

Frankly, this is why it's helpful not just to know the law, but know when certain nominal violations may be ignored by local government. This doesnt apply just to property tax. It applies in code enforcement, zoning, traffic enforcement, you name it. That's probably why a local judge once said, "An ounce of experience is worth a pound of law."Well, that's about enough philosophizing for one blog entry. That's all for now.
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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 areas of both Real Estate - Land Use, Zoning & Environmental and Real Estate - Commercial. For a free consultation regarding your property, contact Click here: http://www.tannebaumweiss.com/property_tax.php

Florida Property Tax News: Weiss's Familiar Quotations

Bartlett had them, why shouldn't I? What follows are not Bartlett's--but Weiss's--Familiar Quotations. Mine, of course, are not of general interest, but confimned to property taxation.

After 26 years of property tax practice, here are my favorite quoations on that subject matter.


The avoidance of taxes is the only intellectual pursuit that carries any reward.--John Maynard Keynes

The Eiffel Tower is the Empire State Building after taxes.--Anonymous

Governments last as long as the undertaxed can defend themselves from the overtaxed.--Bernard Berenson

To tax and to please, no more than to love and to be wise, is not given to men.--Edmund Burke

Read my lips. No new taxes!--George H.W. Bush (Bush I)

Taxes are the sinews of the state.--Cicero

For every benefit you receive a tax is levied.--Ralph Waldo Emerson

I'm proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money.--Arthur Godfrey

Death and taxes are inevitable.--Thomas C. Haliburton

Taxes are the price we pay for a civilized society.--Oliver Wendell Holmes

The promises of yesterday are the taxes of today.--William Lyon MacKenzie King

The power to tax involves the power to destroy.--John Marshall

Next to being shot at and missed, nothing is quite as satisfying as an income tax refund.--F. J. Raymond

The income tax has made more liars out of the American people than golf has. Even when you make a tax form out on the level, you don't know when its through, if you are a crook or a martyr.--Will Rogers

What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin.--Mark Twain

Never before have so many been taken for so much and left with so little.--Van Panopoulos

The tax collector must love poor people--he's creating so many of them.--Bill Vaughan

The thing generally raised on city land is taxes.--Charles Dudley Warner
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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 areas of both Real Estate - Land Use, Zoning & Environmental and Real Estate - Commercial. For a free consultation regarding your property, contact Click here: http://www.tannebaumweiss.com/property_tax.php

Florida Property Tax News: Gas Tax Not Subject of Special Legislative Session

Today's May 23 issue of the Miami Herald reported Miami-Dade County's attempt to suspend some gasoline taxes during the summer driving season.

The County Commission formally asked the Legislature and Congress to halve gas taxes for three months, hoping to provide some relief from record prices. Since all taxes in this State are required by the constitution to be imposed pursuant to statute, the County's request that this matter be addressed by the State Legislature at it special session of June 12 - June 22 would appear on its face to be timely and proper.

The problem with this request is that the proclamation issued by the Legislature convening the special session explicitly ststest that "the Legislature is convened for the sole and exclusive purpose of considering legislation to reduce and/or restructure ad valorem taxes."

Gas taxes are not ad valorem taxes. The County's request is therefore out of order.
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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 areas of both Real Estate - Land Use, Zoning & Environmental and Real Estate - Commercial. For a free consultation regarding your property, contact Click here

Why Should I Hire a Property Tax Attorney for My Property Tax Appeal?

Question: If I as the property owner know more about my property than anyone else does, why should I hire an attorney to represent me in my property tax appeal?

Short answer: low cost, possible greater tax reduction, identification of legal issues, reduced stress, making property tax reduction planning part of your annual business plan.

Low Cost

Property tax attorneys, like other property tax reduction agents, typically work on a contingency fee basis. After a nominal initial filing and preparation fee, the attorney will be compensated by a percentage of the actual property tax reduction. This means that if no reduction is obtained, you have invested nothing but the initial preparation and filing fee.
Possible Greater Tax Reduction

All other things, being equal, who is likely to be more successful at a property tax reduction hearing, the person who handles a few hearings every year, or the person who handles a few hundred hearings every year? If you believe experience counts, on balance, you will do better with professional representation than representing yourself.

Identification of Legal Issues

Why would someone need a property tax attorney, and not just a real estate broker, appraiser or accountant to appeal property taxes? The answer is that attorneys are schooled in identifying and analyzing legal issues. Without exception, every property tax assessment and exemption decision is governed by specific legal regulations. Who better to evaluate and formulate a possible challenge to the validity of an assessment than an experienced property tax attorney?

Benjamin Franklin said, “Nothing is inevitable except death and taxes.” With cryonics, even death may not be inevitable; with a good property tax attorney or tax agent, payment of property taxes may be inevitable, but the amount of taxes due may not be inevitable. Let me qualify that. In the right hands—and in extremely rare cases—the liability for any taxes at all on some parcels may not be inevitable. I recently completely eliminated a $510,000 assessment on homeowners’ association commonly-owned land. I was able to accomplish this simply by knowing the applicable law.

In some taxing jurisdictions, once a legal error is pointed out to the tax assessor or property appraiser, the correction can result in a benefit to the taxpayer for future years, as well. I recently had occasion to point out that a parcel of property was landlocked due to the taking of a portion of the property by eminent domain. The county reduced the assessment by nearly 90%, resulting in thousands of dollars saved annually by the property owner.

Moreover, tax assessment reduction appeals are typically governed by an elaborate set of procedural statutes and rules. No professional is more accustomed to understanding and evaluating statutes than a licensed and experienced attorney.

Reduced Stress

You’ve probably heard the expression, “A lawyer who represents himself has a fool for a client.” One of the essential facets of this pithy saying is that it is unwise to have someone as an advocate who is overly emotionally involved in the case. Translated to the property tax reduction appeal sphere, this means you should think twice about representing yourself on property that you own. A little detachment can go along way. Sometimes being too close to the forest obliterates the trees.

Aside from the strictly rational aspect of detachment, the emotional feature of stress reduction should not be overlooked. If you find it nerve-wracking to receive and review the taxing authorities’ requests for documentation, and hearing notices, or if you feel you know facts that compromise your ability to be fair to yourself, turning the assignment over to an advocate who makes his or her living from dispassionately presenting property tax reduction appeals on behalf of property owners may be your best bet.

Making Property Tax Reduction Appeals Part of Your Annual Business Plan

Having a property tax attorney or other property tax professional on retainer effectively puts the ball in their court. As a matter of course, your property tax reduction representative can be expected to contact you annually to confirm that you want continued representation. This can take the worry out of meeting annual deadlines. It also ensures that you take advantage of the annual or periodic opportunity to appeal your tax assessment, as provided by law in the state where your property is located.

If review of your tax assessment—every time it is issued, not just whenever you happen to pay attention to it—sounds like a good idea, how much better is it to perform this review under the guidance of a property tax lawyer, rather than basing it on your own perspective and experience.

Remember, if you wait till you see your tax bill to decide whether to appeal your property tax assessment, you have probably already missed the deadline.

Most states issue a proposed assessment several months before the tax bill itself is issued. Typically, the tax bill represents the final version of the assessment, and signals, among other things, that the time has already passed for an administrative property tax appeal (although it may not foreclose a more formal judicial appeal).

As with all questions regarding details of the property tax administration process in your state, consult with your local property tax professional. Frequently, the tax agent may be happy to hear from a prospective or existing client and may not even consider charging a fee for a brief telephone or in-person consultation.
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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.
For a free consultation regarding your property, contact Click here

Florida Property Tax News: Special Legislative Session Addresses Property Tax Dilemma

Property tax consultants are in their glory these days. Instead of causing conversation to grind to a halt, property taxes are suddenly a hot topic at every luncheon, networking meeting and cocktail party. So, in the spirit of gathering our rosebuds while we may, what follows is the latest scuttlebutt on what may be offered in terms of property tax reform at the about-to-be-convened special session of the Florida legislature.

Those in the know are already aware that the special session of June 12-23 has been scheduled for the purpose of resolving the impasse between the State House and Senate about what to do to cure inequities in Florida’s property tax system.

At the start of the regular legislative session, Florida House Speaker Marco Rubio (R-West Miami) unveiled a plan intended to eliminate all property taxes on homestead residences. This was to be accomplished by raising sales tax by as much as 2.5 cents to 8.5 cents on the dollar.
The Florida Senate and Governor Charlie Crist opposed the sales-tax increase. Since no alternative plan was approved by both House and Senate, the 11-day special session will be the legislature’s last chance this year to resolve the property tax conundrum.

In the event no consensus comes out of the special session, Florida’s regular 20-year constitutional revision commission is expected to be called upon to address the property tax puzzle. Indeed, since many of the property tax bills filed during the regular legislative session have constitutional implications, the revision commission will have a multiplicity of property tax issues to discuss in any event.

Watch for the Senate’s first female president--and one of our favorite role models--Senator Gwen Margolis (D-N. Dade) to play a leadership role in the constitutional revision commission’s discussion of property tax reform. Sen. Margolis is a former chair of the Miami-Dade County Commission and the Miami-Dade County Value Adjustment Board, and is a property tax maven of the first order.

To get back to the legislature’s special session, it is apparent that Speaker Rubio will be prepared to abandon the trade-off of sales taxes for complete exemption for homesteads. Rubio is floating a new plan to cut property taxes by dramatically increasing the state's homestead exemption and giving a break to all other property owners.

Under Rubio’s revised plan, Florida homeowners would no longer have to pay property taxes on as much as 80% of the first $300,000 in value of their primary—or homestead—residence. The concept of linking property-tax cuts to a percentage of property values appears to be one which will garner philosophical and economic support in both the House and Senate. This cross-chamber, cross-party popularity distinguishes the increase in homestead benefit from the sales tax increase idea, which is traditionally regarded as regressive, having a disproportionate impact on wage earners, since a larger percentage of their disposable income would be consumed by a 40% increase in the level of sales taxes.

Watch this space for discussion of more Florida property tax news as it develops.
_______________________________________________________
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.
For a free consultation regarding your property, contact Click here

Taxpayers Cautioned Against Putting Themselves in Harm's Way by Representing Themselves

I have observed that some taxing officials appear to have no interest in providing relief to the taxpayer. Instead, they may use a taxpayer interview or appeal hearing as an opportunity to gather information to use against the taxpayer, rather than in his favor.

While this is not invariably the case, the taxpayer should always pay attention to what he is being asked by the local official, lest it be used as a fishing expedition to defend the assessment, rather than as an opportunity to consider reducing it.

During 26 years of property tax practice, I have developed the following guidelines to help taxpayers decide whether to handle their own property tax appeals.

Taxpayers should represent themselves if:

1. There exists a provable factual error upon which the property tax assessment is based, such as incorrect legal description, erroneous measurement of land or improvements; or

2. The stakes are so low that no professional tax representative is willing to take on the job.

The taxpayer may feel comfortable making an appointment to see the local government official responsible for the property tax assessment and review with her or him the following possible property tax assessment errors:

1. Inaccurate property description or dimensions.

2. Clerical errors.

3. Mathematical errors.

Other issues that the taxpayer may want initially to personally address to the property appraiser, but may want to hire a professional for before proceeding to hearing, include:

1. Failure to consider needed repairs, including hurricane repairs.

2. Failure to consider value-reducers like difficult ingress and egress, easements, drainage problems, heavy traffic areas, nearby railroad tracks, expressways, industry or noxious uses.

3. Lower assessments on similar properties in the neighborhood. Although market value is generally the controlling standard, by law, taxation must be fair and equitable.

4. Failure to depreciate for negative factors (deferred maintenance, age and quality of materials, poor workmanship, spalling, cracks or deterioration, defective or outmoded materials or construction, physical, functional or economic obsolescence of land or improvements).

In general, it is well to consider hiring a professional to prepare and advance the following property tax appeal claims:

1. Income producing property overassessed.

2. Failure to recognize decreased value due to downward trend in the real estate market.

3. Unlawful assessments, such as double assessment of common areas both to individual owners and to homeowners or condominium association.

4. Exemptions or exceptions to full value taxation (including agricultural classification) not applied or not properly applied to the property.

General rules governing the decision whether to employ a professional for your property tax appeals:

A. Commercial properties, including vacant as well as developed property, should be reviewed annually with a professional as soon as the notice of proposed taxes is issued (in Florida, for example, this occurs in August). Most property tax professionals work on a contingency basis. This gives you an assurance that you are not investing in a tax appeal that is frivolous, since your agent gets no fee unless a reduction is obtained.

B. Taxpayers with unusual professional training or background, such as real estate investors, brokers, agents, accountants or attorneys, may obtain equal or better results than a hired gun, especially considering their enhanced familiarity with the negatives of the property, increased personal investment in the property, and net gain from not paying a professional fee from the tax savings obtained.

In conclusion, as is true of many government processes, property tax appeals may best be handled by professionals. This is particularly true since most property tax agents work on a contingency fee basis. This means that no fee is earned unless an assessment reduction is achieved. Certain claims may be handled just as well by taxpayers themselves, particularly claims based on provable factual errors made by the county property appraiser, such as errors in measurement of the size of land or building which can be demonstrated through sealed survey or sketch or architectural renderings.

If in doubt, review your property tax assessment with a professional. As in other contingency-fee industries, initial consultation is frequently free of charge.
_______________________________________________________
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.
For a free consultation regarding your property, contact Click here

CELEBRITY PROPERTY TAX ASSESSMENT: ALONZO MOURNING

Wondering about Miami Heat veteran center Alonzo Mourning's property tax assessment? Well, here it is, along with some photos and the recently-reduced asking price--just in case you like high ceilings!


Folio No.:
01-4128-036-0080
Property:
3525 ANCHORAGE WY
Mailing Address:
ALONZO H MOURNING JR
Property Information:
Primary Zone:
0100 SINGLE FAMILY RESIDENCE
CLUC:
0001 RESIDENTIAL- SINGLE FAMILY
Beds/Baths:
5/5
Floors:
3
Living Units:
1
Adj Sq Footage:
10,121
Lot Size:
18,583 SQ FT
Year Built:
1996
Legal Description:
ANCHORAGE PB 122-64 LOT 8 BLK 1 LOT SIZE 18583 SQ FT & INT IN COMM AREAS DES AS PVT RD OR 17362-2861 0996 1
Sale Information:
Sale O/R:
17362-2861
Sale Date:
9/1996
Sale Amount:
$3,200,000
Assessment Information:
Year:
2006
Land Value:
$2,861,782
Building Value:
$2,207,305
Market Value:
$5,069,087
Assessed Value:
$4,347,189
Homestead Exemption:
$25,000
Taxable Value:
$4,322,189


Basketball star Alonzo Mourning wants $9.5M for Miami mansion
Miami Heat center Alonzo Mourning has reduced the asking price of his 10,121-square-foot bayfront mansion in Miami, Fla. from $10 million to $9.5 million.

Mourning, 37, paid $3.2 million in 1996 to buy the five-bedroom mansion new, according to public records. Located in the gated Anchorage subdivision in Miami’s Coconut Grove area, the house, at 3525 Anchorage Way, has five full baths, one half bath, a rooftop deck, a four-car garage, a carport that can house six more vehicles, and a private boat harbor with three boat slips, according to listing information. Other features include a pool with a Jacuzzi, impact windows and doors, built-ins, exotic wood cabinetry, expansive teraces, and balconies, according to listing information.

Check out listing information–complete with many photos–at the personalized website for the house, which contains the house’s address: www.3525anchorage.com.

Mourning is selling his Miami house because he and wife Tracy have new, bigger digs. They paid $12.75 million in late 2005, according to public records, to purchase a 13,086-square-foot bayfront mansion at 33 Arvida Parkway in Coral Gables, Fla. Built in 2004, Mourning’s new house has eight bedrooms and a pool and sits on close to an acre. It also carries a whopping $223,203 tax bill, according to public records.

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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.
For a free consultation regarding your property, contact Click here

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.
_______________________________________________________
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.
For a free consultation regarding your property, contact Click here

47 Year Condo Absorption Period Means Reduced Tax Assessments?

From the most recent City of Miami Large Scale Development Report, it appears that the approximate absorption of residential condos in the City of Miami over the past 12 years or so has been 15,525 units. At that rate, it would take 17.2 years to absorb the number of units currently under construction (22,254 units) and another 46.6 years to absorb the proposed and future units (60,232 units).

It appears that the near future will be a very interesting time; it may be loaded with buying opportunities.

If, indeed, the evident glut of condo units soon to hit the market results in an oversupply, sales prices may be exepected to fall, foreclosures proliferate--and fair market value andtproperty taxes assesments reduced accordingly.
_______________________________________________________
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.
For a free consultation regarding your property, contact Click here

When Can I Conduct My Own Property Tax Appeal and When Should I Hire a Professional?

The following article does not constitute legal advice, but is for informational purposes only. Every property tax appeal must be evaluated on its own facts and legal principles. Such evaluation is best undertaken by consulting a professional. Some of the most frustrating experiences I have had as a property tax professional are the times when I have:

Wanted to "jump in" at a property tax appeal hearing and help a taxpayer presenting his own case.


Squirmed in sympathy when a taxpayer answered a question asked at hearing by the taxing authorities intended to elicit an answer to prejudice a taxpayer's claim.


Overheard a property appraisal employee at the public service counter ask a taxpayer for a document ostensibly to help the taxpayer establish entitlement to exemption claim, when the true purpose was to substantiate denial of the claim.


Seen a taxpayer appear at hearing without reading the fine print on the 3-page notice of hearing and inadvertently failing to comply with Florida's recently-adopted 15-day advance evidence filing requirement.
But I've managed to restrain myself (except on one notable occasion, when I insinuated myself into a hearing to act as an "amicus curiae," a friend of the court, to inform the legal Special Magistrate of the status of the law regarding eligibility of certain ICE or immigration statuses eligible for permanent residency under Florida homestead exemption law).

Bottom line is, what was initially intended as an informal opportunity for an aggrieved taxpayer to appear before 3 members of the county commission and 2 members of the county school board has turned into a highly-technical, rule-intensive and fact-intensive evidentiary hearing before an appointed professional appraiser Special Magistrate or attorney Special Magistrate.

The property tax assessment appeal hearing is governed by a slew of procedural rules and statutory and regulatory principles governing both the process and the substantive aspects of property tax assessment and appraisal, as well as exemption and classification issues.

The conclusion I have come to after 25 years of property tax practice on both sides of the fence--representing first the taxing authorities and later private, institutional and even public (e.g., municipal) taxpayers, is that there are two categories of property tax appeals. Some property tax appeal claims can be handled by taxpayers and some should be handed over to professionals, as briefly explained below.

Taxpayers should represent themselves only if:

1. there exists a provable factual error upon which the property tax assessment is based, such as incorrect legal description, erroneous measurement of land or improvements; or

2. the stakes are so low that no professional tax representative is willing to take on the job.

The taxpayer himself or herself may feel comfortable making an appointment to see the local government official responsible for your property tax assessment and review with her or him the following possible property tax assessment errors: 1. Inaccurate property description or dimensions. 2. Clerical errors. 3. Mathematical errors.

Other issues that the taxpayer may want to personally address to the property appraiser but may want to hire a professional for before proceeding to hearing, include:

4. Failure to consider needed repairs.

5. Failure to consider value-reducers like difficult ingress and egress, easements, drainage problems, heavy traffic areas, nearby railroad tracks, expressways, industry or noxious uses.

6. Lower assessments on similar properties in the neighborhood. Although market value is generally the controlling standard, by law, taxation must be fair and equitable.

7. Failure to depreciate for negative factors (deferred maintenance, age and quality of materials, poor workmanship, spalling, cracks or deterioration, defective or outmoded materials or construction, physical, functional or economic obsolescence of land or improvements).

In general, it is well to consider hiring a professional to prepare and advance the following property tax appeal claims:

8. Income producing property overassessed.

9. Failure to recognize decreased value due to downward trend in the real estate market.

10. Unlawful assessments, such as double assessment of common areas both to individual owners and to homeowners association.

11. Exemptions or exceptions to full value taxation (including agricultural classification) not applied or not properly applied to the property.

General rules governing the decision whether to employ a professional for your property tax appeals:

A. Commercial properties, including vacant as well as developed property, should be reviewed annually with a professional as soon as the notice of proposed taxes is issued in August. Most property tax professionals work on a contingency basis. This gives you some assurance that you are not investing in a tax appeal that is frivolous, since your agent gets no fee unless a reduction is obtained.

B. Taxpayers with unusual professional training or background, such as real estate investors, brokers, agents, accountants or attorneys, may obtain equal or better results than a "hired gun," especially considering their enhanced familiarity with the negatives of the property, increased "investment" in the property, and net gain from not paying a professional fee.

Summary: as is true of many government processes, property tax appeals in Florida may best be handled by professionals. This is particularly true since most property tax agents work on a contingency fee basis. This means that no fee is earned unless an assessment reduction is achieved. Certain claims may be handled just as well by taxpayers themselves, particularly claims based on provable factual errors made by the county property appraiser, such as errors in measurement of the size of land or building which can be demonstrated through sealed survey or sketch or architectural renderings. If in doubt, review your property tax assessment with a professional. As in other contingency-fee industries, initial consultation is frequently free of charge.
_______________________________________________________
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.
For a free consultation regarding your property, contact Click here

How to Select a Property Tax Attorney

What follows is an entry I wrote for wikihow titled How to Select a Property Tax Attorney.
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Ever wonder how to go about selecting the right property tax attorney? Here're a few tips.


1. Ask friends or business associates if they know a property tax attorney. As in other areas, a referral from someone who has had direct experience with a professional and whose judgment you trust can be a reliable guide.

2. Schedule an appointment to speak with the attorney by phone. Ask the attorney how he would approach your case. Property tax appeals are typically handled on a contingency fee basis. This means that most or all of the fee depends on the outcome of the tax appeal. One consequence of this industry standard is that many property tax attorneys will briefly discuss your property tax with you without initial fee.

3. Ask for the url of their website and blog. Then spend a few minutes reading the blog for items of interest and looking at the materials posted on the website.

4. Find out what legal and appraisal or assessment organizations the lawyer belongs to. At the very least, he should belong to the International Association of Assessing Officers (IAAO). This is the national professional organization for government officials responsible for assessment of local property taxes.

5. Find out if he or she has earned a Martindale-Hubbell rating. "AV" is the highest ability/highest ethics rating based on the opinion of lawyers and judges who know him or her. Only 10% of American lawyers have achieved this rating. Only 50% of all lawyers have earned a rating, so A-B-C rated lawyers are in the top 50%. Moreover, you cannot have an ability rating unless you have earned the highest ethics rating (the "V" rating).

6. Don't be fooled by advertising slogans, such as "former local government attorney" or "aggressive property tax advocate." Meet the lawyer and decide if you have confidence in his or her skills and feel comfortable with their analysis of your property.

7. Inquire if the attorney you are interviewing has ever taught at a law school (or CLE program) or published a legal or tax assessment article. Teaching and publishing require research and dedication, as well as commitment to good practice policies. This is also is a good way to determine your lawyer's standing in the legal community.

8. Ask who will work on your case if you hire this attorney, and what their experience level is. What portion of work will these other people be doing, and what will be your attorney's participation in your property tax appeal? Does the attorney attend all the hearings? If not, does he sometimes assign this task to nonlawyers, as he is authorized to do in most jurisdictions?

9. Discuss the facts of your case. The attorney should be able to discuss in general terms how he or she will proceed and how your tax appeal will be handled.

10. Inquire about law office communications with clients and what the attorney's policy is regarding apprising you of the progress of your tax appeal.

http://www.wikihow.com/Select-a-Property-Tax-Attorney
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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.
For a free consultation regarding your property, contact Click here

Florida Property Tax News: Call Your State Senator!

What follows is a press release prepared by fellow members of the Florida Association of Property Tax Professionals (FAPTP). Because we endorse the call to action set forth in the press release--and not just because the FAPTP has previously retained our services as legal counsel to address the members of the Palm Beach County Value Adjustment Board--we publish the press release in this blogspace.
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Legislative staff have determined that at least $456.8 million of overassessment and excessive taxation presently exists in the Florida ad valorem tax system. This reverse tax gap is caused by abuses in assessment practices and tax contest proceedings that are heavily weighted in favor of the taxing authorities and against overassessed taxpayers. HB 261, which was passed by the House of Representatives yesterday by a vote of 117 to 1, is designed to correct those abuses. The Legislative staff estimate of as much as $500 million in tax savings will result if this bill is adopted by the Senate.

Some county property appraisers acknowledge that abuses are occurring in the system but wish to delay any corrective action. They are urging the Senate to set up a “study commission” in order to postpone any corrective action. The Auditor General has already studied the ad valorem tax contest system and confirms that abuses are present. No further study is necessary. Real ad valorem tax reform requires an immediate correction of the well recognized flaws in the system. Another year to study this problem, another $500 million of excessive taxation, is not the answer. We urge you to contact you Senator, immediately, bring to his or her attention this appalling situation and urge the Senate’s adoption of the outstanding reforms contained in HB 261. _______________________________________________________
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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Palm Beach County Property Appraiser and Value Adjustment Board Throw Brickbats at Each Other

An annual occurrence after tax bills issue in November is the finger-pointing fest between the Property Appraiser and the taxing authorities, i.e., the county, municipalities, school boards and other entities authorized to set millage rates--tax rates--in order to meet their annual budget.

The traditional event is for all concerned to say, "Don't look at me; it's not my fault your property taxes are so high."

The county property appraiser says, "I just follow the real estate market and reflect the values established by sales of property."

The taxing authorities say, "We just make an arithmetic calculation to determine how much the millage has to be when applied to the tax assessment valuation roll in order to meet expenses set forth in the budget."

This can lead to some lively debate--and more--as it recently did in Palm Beach County.

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Daniel A. Weiss is a former Attorney Special Master for the Miami-Dade County Value Adjustment Board with over 26 years experience as a Florida property tax attorney. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 and has since represented taxpayers in property tax matters. Mr. Weiss was named one of the top lawyers in real estate, zoning and land use by South Florida Legal Guide 2007. In Florida Super Lawyers 2006, Weiss was named one of the top 6 local government lawyers in South Florida.

In Florida Trend magazine™'s Legal Elite's issue, July 2004, Mr. Weiss was selected by his peers as one of the top 30 government lawyers in the State of Florida.

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Florida Property Tax Lawyers and Taxpayers Appear Before Governor's Committee

Wondering where Florida legislators are getting their ideas for tax reform? Well, they needed to do little more than listen to their constituents. Vocal taxpayers and Florida property tax attorneys alike attended eight sessions sceduled across the state to voice their opinions.

To find out what was said, visit the website of the Florida Property Tax Reform Committee.

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Daniel A. Weiss is a former Attorney Special Master for the Miami-Dade County Value Adjustment Board with over 26 years property tax experience. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 and has since represented taxpayers in property tax matters. Mr. Weiss was named one of the top lawyers in real estate, zoning and land use by South Florida Legal Guide 2007. In Florida Super Lawyers 2006, Weiss was named one of the top 6 local government lawyers in South Florida.

In Florida Trend magazine™'s Legal Elite's issue, July 2004, Mr. Weiss was selected by his peers as one of the top 30 government lawyers in the State of Florida.

For a free consultation regarding your property, contact us.

For More Information Click here

Florida Property Tax News: Homestead Exemptions Continued After Building Damaged or Destroyed By Misfortune or Calamity— Or Intentional Demolition?

The 2006 Florida Legislature adopted a statute intended to preserve homestead exemption status of property damaged or destroyed by misfortune or calamity. Section 196.031(7), Florida Statutes, is effective January 1, 2006. Thus, it applies retroactively to the 2006 tax assessment roll, as well as to all future years’ rolls.

In summary, this new law provides that homestead exemption can be granted when a homestead property is damaged or destroyed by misfortune or calamity and is uninhabitable on January 1 after the damage if the property otherwise qualifies and the property owner notifies the property appraiser that he or she intends to repair or rebuild the property and live in it as the primary residence after it is repaired or rebuilt and the owner does not claim a homestead exemption on any other property. Failure by the owner to commence the repair or rebuilding within 3 years constitutes abandonment.

The law specifically revised section 196.031, Florida Statutes, as follows:

196.031 Exemption of homesteads.—

(7) When homestead property is damaged or destroyed by misfortune or calamity and the property is uninhabitable on January 1 after the damage or destruction occurs, the homestead exemption may be granted if the property is otherwise qualified and if the property owner notifies the property appraiser that he or she intends to repair or rebuild the property and live in the property as his or her primary residence after the property is repaired or rebuilt and does not claim a homestead exemption on any other property or otherwise violate this section. Failure by the property owner to commence the repair or rebuilding of the homestead property within 3 years after January 1 following the property’s damage or destruction constitutes abandonment of the property as a homestead.

Notably, the new relief ostensibly created by this statute has been advocated successfully by the author of this article as though it were already authorized. We have successfully taken the position on behalf of a number of different taxpayers that homestead exemption and the Save Our Homes Cap, once established, so long as it is not abandoned, can survive destruction of the improvements. Moreover, we have successfully taken this position even where the destruction was due to intentional demolition for planned redevelopment, and not solely due to misfortune or calamity. This position we believe to be well-founded, since permanent residence is not necessarily synonymous with physical occupancy—County Property Appraisers’ sometime position to the contrary notwithstanding.

Generally, we find our position on preservation of homestead exemption during and after demolition for rebuilding a private residence acceptable to the County Property Appraiser provided the following general guidelines are considered:

1. Reasonableness of length of absence from the homestead property, depending on the size and scope of the remodeling, renovation or reconstruction;

2. Factual indicia of continuing permanent residence;

3. Other place(s) of residency during absence from homestead;

4. Intention to return to homestead property upon completion of renovation, remodeling or reconstruction;

5. Applications for or status of homestead exemption or residency benefit elsewhere than on the property claimed as continuing homestead;

6. Any changes in applicable law.

Our policy—just as is the policy enshrined in the above-quoted newly-adopted statute—is to put the Property Appraiser on notice so as to attempt to prevent revocation of homestead during the period of reconstruction. In regard to estimating the time period involved, we ask the Property Appraiser to consider each case on its own facts in relation to the foregoing criteria. For example, if there were particular problems with a contract or a construction project, such facts should appropriately be reviewed when considering how long the taxpayer is physically absent from the homestead property. We believe this procedure sets a good example for other Florida property tax lawyers who desire to improve the quality of service provided to taxpayer clients

We take pains to make clear to the taxpayer—and to acknowledge to the Property Appraiser our understanding--that the work on the property and value added thereby will be assessed on the next succeeding tax roll in addition to value of the improvements in a prior year—or in lieu of the improvements if there is a complete demolition. Obviously, this added valuation should be done in a manner consistent with the constitution, the governing statutes and prevailing policies.

In the case of complete demolition, then, the only portion of the property which would be capped under the “Save Our Homes Amendment” would be the land. In many locations in Florida, particularly for waterfront properties homesteaded since the inception of the Save Our Homes Cap in 1996, tax savings can run into the tens of thousands of dollars annually.

If you have any questions or concerns about how this new statute relates to your property, or how to protect and preserve your homestead exemption from property taxation during periods of demolition and rebuilding, see your property tax consultant.

Also, remember to review the assessment of the new improvement the first time it appears on your Notice of Proposed Taxes in August. Be sure to consider appealing the assessment if you believe the Property Appraiser has assessed the improvements in excess of market value. You may have to contact the Property Appraiser’s office, or view your assessment online, to ascertain the value assigned separately to the improvements. The split between land value and building value do not appear on the state-approved form for the notice of proposed property taxes, although proposed revision are in the legislative hopper for 2007. And in making the decision whether to appeal, remember that (1) the cost approach to valuation of real estate is particularly applicable to new construction; and (2) the improvement valuation will be included in the assessment (together with the capped value on the land) to comprise your new homestead exemption base year assessment for all future years under the Save Our Homes cap. So don’t neglect timely undertaking this important decision-making process.
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Daniel A. Weiss is a former Attorney Special Master for the Miami-Dade County Value Adjustment Board with over 26 years property tax experience. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 and has since represented taxpayers in property tax matters. Mr. Weiss was named one of the top lawyers in real estate, zoning and land use by South Florida Legal Guide 2007. In Florida Super Lawyers 2006, Weiss was named one of the top 6 local government lawyers in South Florida.

In Florida Trend magazine™'s Legal Elite's issue, July 2004, Mr. Weiss was selected by his peers as one of the top 30 government lawyers in the State of Florida.

For a free consultation regarding your property, contact us.

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Florida Property Tax News: Florida Property Tax Committee Proceedings

Very much in the news these days are the public meetings of the Florida Property Tax Reform Committee. The Committee was appointed by Governor Jeb Bush. The Committee is holding hearings around the state, seeking public input.

Eight meetings are scheduled in various locations across the state. On February 13, 2007, the Legislative Hearings on Property Tax Reform were held in Miami. The author of this blog attended, both to hear what others had to say and to put in his own two cents worth.

The Committee’s Charge

The Committee was charged with responsibility to consider, at a minimum, the following:

· Consequences of property tax exemptions and assessment differentials;
· Appropriateness, affordability and economic consequences of property taxation levels in Florida;
· Alternative methods of assessment, including, but not limited to, split-rate and land value taxation;
· Replacement alternatives to property taxation as sources of public funding, including increased sales taxes; and
· Limitations on local government revenue and expenditures.

Topics Addressed

Topics addressed at preliminary sessions of the Property Tax Reform Committee and at Legislative Hearings on Property Tax Reform convened at Panama City, Jacksonville, West Palm Beach, Fort Lauderdale and Miami, include the following ideas:

· Assess business property based on current use only, instead of “highest and best use” value.
· Cap tax revenue growth for individual local governments.
· Cap tax increases on individual properties or classes of property.
· Full or partial replacement of the property tax with other forms of taxation.
· Assess properties using a moving average value of several years’ assessments instead of using just the current year’s value.
· Simplify the “Truth in Millage” annual notice of proposed property taxes to be more easily understood by taxpayers.
· Increase the amount of homestead exemption and/or index it by percentage of value.
· Institute “portability” or transferability within Florida of the Save Our Homes cap, in whole or in part.
· Phase-out the Save Our Homes tax preference.
· Partial-year assessments of improvements to real property.
· Improve or limit agricultural use classification regulations.
· Protect homestead-related property tax benefits when property is taken for public use by eminent domain.
· Protect homestead-related property tax benefits upon relocation required by military service.

Further Proceedings

A preliminary report was issued by the Committee in December 2006. A mid-term report is due on or before March 1, 2007, and a final report no later than December 1, 2007. Ultimately, the Committee is charged with responsibility to issue recommendations to improve property taxation in Florida through a comprehensive approach, with an emphasis on simplifying the system for all taxpayers.

The responsibility with which the Committee is tasked is fraught with difficulty, since any adjustment to the current system has repercussions throughout the remainder of the property tax administration system of the State. Think of it as a water balloon; if you squeeze one side, the volume of water displaced expands the rest of the balloon. The metaphor is not exactly Archimedean, but it does give you a visual image of the problems involved.

Notably, most of the changes being considered may require a constitutional amendment before implementation. This means that the most the Legislature can do is propose constitutional amendments. After that, it will be up to the voters of the State of Florida whether the proposals will be adopted.


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Daniel A. Weiss is a former Attorney Special Master for the Miami-Dade County Value Adjustment Board with over 25 years property tax experience. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 and has since represented taxpayers in property tax matters. Mr. Weiss was named one of the top lawyers in real estate, zoning and land use by South Florida Legal Guide 2007. In Florida Super Lawyers 2006, Weiss was named one of the top 6 local government lawyers in South Florida.

In Florida Trend magazine™'s Legal Elite's issue, July 2004, Mr. Weiss was selected by his peers as one of the top 30 government lawyers in the State of Florida.

For a free consultation regarding your property, contact us.

For More Information Click here