Thursday, April 19, 2007

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.
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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

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.
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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

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.
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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

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