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: 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.
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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

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.
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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 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: MARCH 1 IS HOMESTEAD EXEMPTION FILING DEADLINE!

MARCH 1st IS FLORIDA HOMESTEAD EXEMPTION DEADLINE

March 1 is the annual filing deadline for homestead property tax exemption in Florida.

Here are a few FAQs related to Florida's valuable homestead exemption from property taxation.

The Property Appraiser’s Office in each county administers property tax savings on residential properties that qualify for Florida’s $25,000 homestead exemption.

For example, if your home has an assessed value of $100,000, the homestead exemption reduces its taxable value to $75,000.

Further tax relief on homestead properties, such as up to $5,000 for qualified disabled veterans, or $500 for widows or widowers, may also apply to your residence.

An additional $25,000 exemption for qualified senior citizens is now in effect for county residents who meet an income-level eligibility.

A panoply of additional homestead-related exemptions are available to disabled veterans, those legally blind, quadriplegic, hemiplegic, paraplegic or totally and permanently disabled so as to require the use of a wheelchair for mobility. Some of these exemption wholly ELIMINATE property taxation on the residence, irrespective of its value.

Confer with your county Property Appraiser or local property tax consultant to determine whether you are eligible for any of these valuable benefits.


The deadline for all new applications for homestead and other exemptions is March 1 each year. This includes instituitional exemptions, such as charitable, religious, educational and scientific. agricultural classification applications must also be filed on or before March 1.

The Property Appraiser’s Office also administers Florida Constitution Amendment 10 — Florida’s 3% cap on qualified homestead properties.

Florida limits any increase in the assessed value of a qualified homestead property to 3 % or the Consumer Price Index, whichever is lower. The cap does not apply to commercial property. When a homestead property is sold, the value returns to market value as of the following January 1. New additions or improvements are assessed at market value on January 1 following the year of construction. Thereafter, they are included in the 3% cap.

This Save Our Homes (SOH) cap can become far more valuable over time. Some Florida homes which have been homestead-exempt since the 1995 SOH start date are now assessed at less than 50%--some significantly less tan 50%--of their market value. For owners of some luxury homes, actual tax savings may amount to $100,000 per year or more!

So don't make the mistake of thinking that the homestead exemption affords only relief against $25,000 in assessed valuation.

Any questions? Contact your County Property Appraiser. Click here for contact information.

http://dor.myflorida.com/dor/property/appraisers.html

To be sure you're doing the most you can to keep your property taxes as low as the law allows them to be, contact a Florida property tax professional, whether it's a lawyer, real estate broker, accountant or other experienced professional.
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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

FLORIDA PROPERTY TAX NEWS: STATEWIDE TOWN-HALL MEETINGS

Florida property taxes are very much in the news these days. Of paramount interest are the ever-increasing dollar amounts paid by Florida property owners due to the recent boom in real estate. Also attracting legislative, public and press attention are the consequent inequalities created under Florida's Save Our Homes homestead exemption laws.

In response to these and other property tax issues, Florida lawmakers are scheduling town-hall meetings across the state in coming weeks to hear recommendations from the public on how to reduce property taxes.

According to state Senator Mike Haridopolos (R., Melbourne), Chairman of the Senate Finance and Tax Committee, those heading up the effort insist that "everything is on the table" when it comes to reviewing Florida's property tax system.

"There may be some very creative ideas for how we can address this problem," said Senator Don Gaetz (R., Niceville--yes, there is a Niceville in Florida, believe it or not), who joined Haridopolos and Representative Frank Attkisson (R., Kissimmee), in announcing plans to hold eight public hearings before the inception of the regular legislative session in March.

The first hearing is slated for Panama City in January 2007. In keeping with the town-hall format, the public is of course invited to attend and participate.

Sen. Haridopolos and Rep. Attkisson have their own point of view on the save Our Homes controversy. Both said that they're not in favor of revising the Save Our Homes tax cap, which has shifted more of the tax burden from homeowners to business and investment property owners over the years. The cap has also created great disparity in property taxes paid by newer homeowners compared to longtime homeowners.

An alternative point of view is that of House Speaker Marco Rubio. The Speaker is very interested in getting a property tax amendment on the ballot this year, Attkisson said. That means getting three-fourths of the Legislature to agree to put the amendment on the ballot for consideration by the voters of the state of Florida.

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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

Why Is Janus the God of Property Taxes?

Oh, you didn’t know that the ancient Roman deity Janus was the god of property taxation? Don’t feel uninformed; I myself just made this up to make a point!

Janus is known for three things:
1. as god of gates and doors, he symbolizes
all beginnings;
2. he is the god for whom the month of January is named; and
3. he is represented by two opposite faces.

So, why, you may ask, did I decide to anoint Janus the god of property taxation? Well, for the selfsame three reasons alluded to above.

First, the beginning of the year, January, is the essential time to do your property tax planning for the year. Yes, Virginia, there is such a thing as property tax planning. It may not be as elaborate or involved as federal income tax planning, but the pay-offs for small investments of time can be exponentially greater.

Next, the two-faced god is a viable symbol for your advocacy in pursuing property tax reduction appeals. More about this below.

January is property tax planning month

For nearly all states, the official tax assessment date is either January 1 or December 31. This means two things. First, the value—and therefore the condition—of all property for tax assessment purposes hinges on its status as of the assessment date. The same is true for both valuation and exemption issues. Three examples will help to illustrate this point.

Condition on the assessment date governs for the entire year

First, let’s say a factory burns to the ground December 30. As of a January 1 assessment date, no value whatsoever may be placed on the building by the tax assessor. If the same catastrophe occurs January 2, full value may be assessed against the building for the entire year, even though the owner had use of the property for only the first two days of the year! Property tax statutes are complicated and difficult enough to apply even under ideal conditions, and as a result the courts have enforced bright line rules such as these in order to assist tax assessors in administering the tax assessment statutes.

Now, before I proceed, let me make it perfectly clear that the example above is NOT intended as property tax planning advice to Joey the Torch! Instead, it means that if you have repairs and enhancements to make to your residence or commercial property, if these are not completed—or at least not substantially completed—by the assessment date, it is likely that the tax assessor will not be able to tax them until the following tax year, thereby providing you a free year’s use without taxation. This is what is meant by tax avoidance—planning measures intended to minimize tax burdens. It is distinguished from tax evasion—the use of unlawful measures--which we neither approve of nor advocate.

Avoiding first year of taxation on new or rehabbed improvements

Second, and as a corollary to the fiery example discussed above, if new construction or rehabilitation is about to be completed toward the end of the calendar year, you may want to delay obtaining a certificate of occupancy or connecting electricity or plumbing until after the assessment date—again with the purpose of avoiding taxation till the following year. Be sure to check with your property tax adviser in advance on this issue, since regulations differ from state to state—to say nothing of enforcement varying from jurisdiction to jurisdiction.

Qualifying for exemptions—residential and institutional

Third, exemption and special classification issues are decided based on facts in place as of the assessment date. So, if your state requires qualifying ownership and use as of January 1 to be eligible for exemption, make sure title is transfered—to your new home, or to your charitable organization’s new facility—no later than December 31, and that the actual use required for exemption is established and capable of being demonstrated (through photographs or otherwise) on or before the assessment date. The same holds true for special classifications, such as greenbelt or agricultural classifications. Again, consult with a property tax professional regarding requirements in your jurisdiction.

Filing deadlines—don’t forfeit a valuable tax benefit!

All tax benefits have annual deadlines. Check with your tax assessor and find out what they are. If you miss the filing deadline, the consequence may very well be that you forfeit the benefit for a year—or more! And remember, “filing” means “received” by the appropriate official. Merely placing the document in the mail is not the legal equivalent of receipt; the papers actually have to arrive at their ultimate destination. Do not underestimate the value of hand delivery and obtaining a date-stamped copy for your records. These pointers apply to institutional and agricultural exemption filings, tangible personal property (furniture, fixtures and equipment) tax returns, tax reduction appeal petitions, and any other communication or filing with the taxing authorities.


Put your best “face” forward in your property tax reduction appeal

While you must always be truthful with the tax assessor and other taxing authorities, there is no shame in marshaling just those facts which favor your side of the appeal; at the hearing, the tax assessor may certainly not disclose all the facts which pertain to your property, but only those which support his or her assessment. You would do well to emulate this example. Hence, the notion of turning forward the face which helps your claim to reduced valuation.

Conclusion

Well, there you have it. Now you know why I chose the god Janus as the god of property taxation. So, as you make your new year’s resolutions each year, remember to add to the list those property tax reduction planning measures which will put money in your pocket and enable you to take advantage of all the property tax benefits the government has to offer.

Finally, it cannot be repeated too often that each state has its own regulations. Contact a property tax consultant in your area to discuss the regulations which apply and how best to take advantage of the benefits afforded by your state constitution and statutes.
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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

Who Are the Various Taxing Authorities and Why Am I Never Able to Find the Right Person?

“What's in a name? That which we call a rose by any other name would smell as sweet.”
--Romeo & Juliet, Act II, Scene II

Well, a rose by any other name may smell just as sweet to Shakespeare, but don’t try to call the tax collector to ask a property appraisal question. Not knowing which office to call may simply get you an exasperated employee who is unable to assist you.

If you are not sure exactly which department to call about your property tax question, try finding out if your local government has a “311” type of service. This is the concept of 411—telephone directory information—writ small to address only phone numbers in your municipal or county government. If the number to use is not actually 311, there may be another number which is a general information number staffed by persons whose job it is to steer you in the right direction. Find that number and you will be off to a flying start.

To give you a head-start on the nomenclature and division-of-labor issue, use the following as a primer.


Who does what

Several entities determine the outcome of your annual property tax bill. While the names of these entities vary from state to state—and from time to time—the names used in Florida generally exemplify the roles of the various entities in determining your property tax bill.

The property appraiser

Just as the name implies, your county property appraiser assesses the value of property. He or she also makes exemption and classification decisions. In many jurisdictions, this position is called tax assessor. In fact, the position was called tax assessor in Florida until 1980. At that time it was changed to property appraiser to try to provide a more descriptive name of the functions of the office, and to demarcate it more clearly from that of the tax collector.

But woe be unto those who don’t keep their lingo up-to-date. A recent straw ballot on whether the property appraiser should be elected in Miami-Dade County, Florida, rather than appointed by the County Manager, as is presently done, was (properly) stricken from the ballot by a circuit judge on the ground that it was not clear whether the ballot question referred to the property appraiser or tax collector. So much for a rose by any other name smelling just as sweet!

The tax collector

The tax collector—again, as the name implies--acts as collection agency and accountant, adding up the various taxes, billing property owners and collecting property taxes and other charges billed on the tax bill. The tax collector sells tax certificates to enforce unpaid and delinquent taxes on real estate and enforces tangible personal property taxes through warrants and seizure, as provided by state statute.

The taxing authorities

Taxing authorities—cities, counties, community development districts, water management districts, etc.—determine local millage rates and special assessments. And while we’re talking about millage (don’t let spell-check “correct” this to “mileage”!), a mill is simply a tenth of a per cent, and is a measure that makes it easier to discuss tax rates. Millage is synonymous with tax rate, expressed in terms of tenths of a per cent.

Value adjustment board

The Value Adjustment Board hears and rules on property owners complaints about assessed valuation of real estate and tangible personal property, exemption denials and disapprovals of special classification, such as greenbelt or agricultural.

Outside Florida, this function may be served by an entity known as the property appraisal adjustment board, tax equalization board, tax adjustment board, or some similar name.

As with any other question regarding property tax rights and obligations in your jurisdiction, confer with a local property tax consultant. He or she will be familiar with the regulations which govern in your area.

There, now, don’t you feel better informed already?
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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

WHAT DO I NEED TO KNOW TO HANDLE MY OWN PROPERTY TAX REDUCTION APPEALS?

I had a call from a property taxpayer the other day. He said he had carefully considered two articles of mine that he had read online regarding property tax reduction appeals. One article discussed why property owners should consider hiring property tax attorneys to handle tax reduction appeals. The other article discussed the circumstances under which property owners should consider handling their own appeals.

The caller said he had decided to handle his own property tax reduction appeal. What he wanted was property tax reduction advice. So I doffed my proverbial thinking cap and came up with the following


10 Commandments for Handling Your Own Property Tax Reduction Appeal


1. Know your audience. Who is going to hear and decide your appeal? Is it a professional appraiser who will be interested only in quantitative evidence in the form of comparable sales information and net income from the subject property? Or is it a panel of elected officials who may be swayed by a constituent’s legitimate hardship due the condition of the property having a negative impact on value? Find this out as soon as you file your property tax reduction appeal. Then guide yourself accordingly.

2. Meet with the tax assessor. When you file the property tax reduction appeal, make an appointment to come back and meet with the tax assessor. Don’t try to have the meeting on the same day you file your appeal if you’ve waited till the last day to file, as so many of us do. Find out who the specialist is who deals with your particular issue. Or if you are not sure what your issue is, talk with the public information officer, get some background information, and think about what your issues are.

If you think your property has fewer square feet than the assessor’s records reflect, as to speak to an evaluator. Ask what would be adequate proof that the property is mismeasured. A zoning ordinance showing the property is treated as larger than the maximum allowable size under the code? A survey? A survey with a raised seal signed by a licensed architect?

If you have an exemption issue, ask to speak to the exemption specialist. If you have a greenbelt or agricultural issue, ask to speak to the agricultural classification specialist. If you are not satisfied, ask to speak with a supervisor.

Ask open-ended questions to maximize the information you get. Here are a few examples. What other departments of the city or county keep records concerning my property? What are other reasons which may support a reduction in value? Who else should I talk to about these issues? What else do I need to know in order to be able to proceed with my appeal? Where do I go to look at evidence filed in appeals on similar properties? What records are kept by the tax assessor from which my property’s assessment is derived? Who can explain these records to me?


Don’t be shy about returning for a second, third or fourth visit. Remember whose property taxes are paying the employees’ salaries. And benefits. And 14 paid vacation days. And 12 paid sick leave days. And pension.

3. Use the Public Records and Open Meeting Laws to Your Advantage. One of the great beauties of dealing with the government is the mandates of public records act and open meeting laws. Like the federal government Freedom of Information Act, all states have them. Find out from the tax assessor what records you are entitled to see, both with regard to your property and similar properties. Ask about online access. Ask about costs of copies.
Find out where the property tax reduction hearings are held. Then make it your business to observe other taxpayers’ hearings before the day your hearing is scheduled. You may be surprised at how much you can learn from observing both professional tax agents and other property owners. See if you can determine from successful results what the winning strategies are for the issues you intend to present.

4. Review the Controlling Statutes. Ever try to play and win a game the rules of which you were unfamiliar with? Then don’t start now. Ask if there is a pamphlet of governing rules. If there is none, ask which statutes govern preparation of the tax assessment and the tax appeal reduction proceedings. Get copies. Read through them. Then come back to the tax assessor’s office and ask the public information officer any questions you may have.

5. Honor the Precedents, the “Question Authority.” Remember that all legal proceedings are governed by precedent, i.e., prior decisions. On the other hand, don’t be afraid to ask why some rule has to be the way the tax assessor says it is, instead of some more reasonable application of the rules to your property. Remember the message of the 1970s bumper sticker, “Question Authority.” To figure out where the balance is between these two counterpoints, observe as many tax appeal reduction hearings as you have time before the day your own appeal is scheduled.

6. How Is Your Property Different from All Other Properties? Distinguish your property and your presentation from the myriad other property tax reduction appeals the same decision maker will hear on the same day as yours. Give him a reason to treat your property differently than the majority of appeals he is certain—as a statistical verity--to deny.

7. Consult with a Pro: Real Estate Broker, Appraiser, Attorney. Is your sister-in-law an appraiser? Your neighbor a real estate broker? Now’s the time to ask for a favor. Or buttonhole one of the professional tax reps after a hearing you observe. Likely, he or she’ll be flattered.

8. Keep Your Eye on the Ball – “Accuracy and Equity.” As with any presentation, focus is essential. What is the standard your must meet to obtain relief? Do you have to prove that your assessment exceeds market value? Or that the tax assessor committed legal error in preparing the assessment? Both? What are the equitable or fairness principles that govern? Is it enough to show that your property is assessed disproportionately to other comparable properties in a homogeneous area of neighborhood? Find out what the controlling standard is. Then make sure you have adequate evidence to meet the standard.


9. Be Creative. Outside the box thinking counts. Just this week I started a property tax reduction appeal hearing by saying, “This is a defense you will rarely hear outside a criminal trial and never in a property tax appeal hearing. This is a case of mistaken identity.” Then I proceeded to explain why $80 per square foot may have been appropriate on the other side of the nearby dividing line, but not on my client’s side of the thoroughfare.

10. Prepare, Prepare, Prepare. These are the three most important things to remember in making sure your hearing is successful.
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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. 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: AFFORDABLE HOUSING TAX BREAK

Last week we wrote about property tax breaks available for certain owners of large apartment complexes financed with State funds.

We characterized this as an about-face by Miami-Dade County taxing authorities, but ended the blog entry by noting that something was missing from the picture. Now we have the missing piece of the puzzle.

After 25 years of observing the careful work done by the Miami-Dade County Property Appraiser, we knew full well no tax relief would be offered except as authorized by state law. So where did we go to figure out the source of the largesse? The Florida statutes.

Cross-referencing the fair market value statute, we quickly found a state program that allows certain affordable housing developments to be assessed based on their actual income--rather than on market income, which is the general standard in Florida. For rent-restricted affordable housing rentals, the difference between value based on actual income derived under government-controlled rents and market rent can be significant. In some instances it can spell the difference between a viable financial operation and failure.

Other than Low Income Housing Tax Credit (LIHTC) developments specially categorized under the Internal Revenue Code, only properties enrolled in the State Housing Tax Credit Program are eligible for this special benefit. Details can be found under section 420.5093, Florida Statutes.

Statutory guidelines include eligibility requirements, treatment of low income housing agreements recorded in the public records as land use restrictions, and recognition by the property appraiser of the actual rental income from rent-restricted units, rather than market rental rates.

Miami-Dade Property Appraiser Frank Jacobs guesstimated 30 to 40 eligible properties. The State lists 172 such developments in the County.

And so, the mystery is solved. As we suspected, Miami-Dade County is operating consistently with a State-created and -authorized program and is not off on a frolic of its own. It knows full well that under Florida's constitution, there is one uniform set of regulations governing all 67 counties, and no county is free to create its own rules governing taxation. All taxes must be authorized by state statute in order to comply with the Florida constitution.

If you are an owner or operator of large multifamily apartment complexes and wish to learn more about the special property tax treatment accorded under the State Housing Tax Credit Program, contact the author of this blog.

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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. 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: COUNTY DOES A 180 AND OFFERS TAX BREAK ON AFFORDABLE RENTALS

Miami-Dade County government reversed its earlier firmly-held position and signaled its intention to establish property tax relief for apartment owners who dedicate certain of their units to affordable housing under a specified set of circumstances.

County government honchos are poised to introduce a program that will offer tax relief to a small segment of apartment building owners who offer affordable rentals.

The program is only a first step in addressing a growing and somewhat controversial increase in the tax burden shouldered by multifamily rental unit owners as a result of the real estate boom of the past five years, but it's the only remedy county leaders believe is allowed under current state law.

Many more property owners could be helped if the state Legislature changed tax laws, said County Manager George Burgess. Some have lobbied the Legislature to create special tax abatements to benefit apartment owners--and in turn renters--in the same way the homestead exemption and the Save Our Homes 3% tax cap benefit properties owned and occupied by permanent residents of Florida. Rental properties don't qualify for homestead exemption benefits.

Although no change in legislation authorizes different treatment of rental unit owners than before the last session of the Legislature, the County Manager and his appointed Property Appraiser nonetheless fashioned guidelines to provide relief in the very area in which the Legislature was petitioned in 2006--unsuccessfully. "Let's do whatever we can do locally to try to provide an opportunity for some of these owners of affordable workforce housing to get them a break," Burgess said.

The new program will be available to apartment buildings or complexes that were built with restrictive financing that gave them lower interest rates or some other benefit in exchange for keeping rents in a range defined as affordable by the federal government.

Typically these are larger apartment complexes. In order to get the favorable loan, the owner had to set aside some or all of the rental units in the building or complex for people earning low to medium wages.

If the borrowers violate these affordable-rent covenants, they run the risk of the loan being in default or payment being accelerated. In most cases, the owners signed rental agreements with lenders that run 20 or 30 years, said Frank Jacobs, Miami-Dade County Property Appraiser. They are not currently receiving county property tax breaks.

Under the current state law, Jacobs said, he can take those financing agreements and draft a land-use restriction for the owners to sign that mirrors the agreement. A county property tax break can be given once the land-use restriction is in place.

The county will publish applications for the tax relief program in newspapers and magazines that target business owners.

Jacobs said he doesn't know how many apartment owners will benefit from the new program, which is expected to begin in the next few weeks. The County's best estimate at the moment is that between 30 and 40 properties may qualify.

Buildings already subsidized with Section 8 vouchers or financed with Low Incoming Housing Tax Credits (LIHTC) are not eligible for the program.

Burgess said Miami-Dade will continue to lobby the Legislature for lower property taxes for other multifamily apartment building owners. Many landlords have complained that double-digit tax increases and out-of-control insurance costs have forced them to hike rents or convert their units to condos.

About-face for the County?

This appears to be a fascinating about-face for County property tax officials, who have consistently taken the position in recent interviews with the press that this very form of tax relief is not AUTHORIZED by state law, but PROHIBITED by it.

For example, in The Miami Herald issue of September 13, 2005, some city leaders had gone so far as to complain that the Miami-Dade Property Appraiser was undermining efforts to improve the availability of reasonably priced housing. City leaders complained the county was raising taxes so high on rental housing owners they must either jack up rents or sell.

At that time, Jacobs said he lacked authority to assess affordable (although not necessarily government rent-restricted) apartment buildings any differently than any other property in the county, saying he is just following the law and cannot bend the rules for public officials who want him to go easy on middle-income earners. He said the law allows him to give a break to some low-income housing projects--for instance, the low-income tax credit housing backed by the federal government--but does not give him the discretion to pick and choose others. Jacobs said that until the Florida Legislature addressed the issue, his hands were tied.

But although state legislators balked last session at passing a measure aimed at providing tax relief for rental owners, some 6 weeks after The Miami Herald article quoting Jacobs as saying his hands were tied, somehow the County is now able to offer the very relief Jacobs had said on September 13 he was unable to offer.

Obviously, there is something missing from this picture. Give us a little while to look into this. We'll get back to you about this--hopefully in our next edition of Florida Property Tax News.

_______________________________________________________
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. 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