The Miami-Dade County Developers and Builders Alliance asked me to provide 10 questions to be asked at their round table luncheon on property taxes in Miami-Dade County for 2007. What follows is a list of the questions I provided. These were among the questions addressed to the Property Appraiser, Marcus Saiz.
1. WHAT IMPACT WILL 2007 LEGISLATION ACTUALLY HAVE ON TAX BILLS? WILL THEY BE LOWER OR HIGHER?
2. IF PROPERTY VALUES DID NOT INCREASE BETWEEN JANUARY 1, 2006 AND JANUARY 1, 2007, WHY DID THE CITY OF MIAMI REAL PROPERTY TAX ASSESSMENT ROLL INCREASE FROM $34 TO $38 BILLION, EXCLUSIVE OF NEW TAXABLE VALUE?
3. BASED ON SALES THROUGH JUNE 2007, WHAT DO YOU EXPECT TO SEE IN TERMS OF INCREASE, DECREASE, OR STASIS OF TOTAL NEW VALUE ON THE TAX ROLL FOR 2008?
4. WHAT IS THE PROPERTY APPRAISER’S POSITION ON THE INITIATIVE BEING STUDIED BY THE CHARTER REVISION COMMISSION TO CHANGE THE PROPERTY APPRAISER FROM AN APPOINTIVE TO AN ELECTIVE POSITION?
5. HOW MANY OF THE TAX APPEALS FILED ANNUALLY ON VALUE ARE GRANTED?
6. WHY HAS THE PROPERTY APPRAISER CHANGED HIS POLICIES AND PROCEDURES IN THE PAST TWO YEARS IN GRANTING AGRICULTURAL CLASSIFICATION TO PROPERTY OWNED BY DEVELOPERS WHEN THERE HAS BEEN NO CORRESPONDING CHANGE IN THE LAW?
7. WHAT IS THE PROPERTY APPRAISER’S POSITION ON THE HOMESTEAD EXEMPTION ISSUES TO BE VOTED UPON ON THE JANUARY 2008 BALLOT?
8. WHAT IS THE PROPERTY APPRISER DOING TO STAFF PUBLIC SERVICE DESKS FOR THE EXPECTED ONSLAUGHT OF TAXPAYER CALLS AND VISITS WHEN THEY FIND OUT ON AUGUST 25TH THAT ASSESSMENTS ARE UP AN AVERAGE OF 13% FOR 2007 IN MIAMI-DADE COUNTY?
9. WHY DOES THE PROPERTY APPRAISER DISCRIMINATE AGAINST FOREIGN-BORN PARENTS LIVING IN THE HOME IN DENYING HOMESTEAD EXEMPTION WHERE THERE ARE U.S.-BORN DEPENDENT CHILDREN IN THE HOME BUT GRANTS HOMESTEAD EXEMPTION WHERE THERE ARE U.S.-BORN CHILDREN IN THE HOME AND THE PARENTS LIVING IN ANOTHER STATE AND HOLDING LEGAL TITLE TO THE PROPERTY AREN’T EVEN FLORIDA RESIDENTS?
10. WHY DOES THE PROPERTY APPARSIER GRANT CHRITABLE EXEMPTION TO VACANT LAND OWNED BY HABITAT FOR HUMANITY AND OTHER ORGANIZATIONS BUT DENY EXEMPTION TO OTHER AFFORDABLE HOUSING NOT-FOR-PROFITS WHERE THEIR IMPROVED PROPERTY IS IN THE PROCESS OF BEING REHABILITATED WITH COUNTY, STATE AND FEDERAL FUNDS FOR USE AS CHARITABLE, LOW-INCOME AFFORDABLE HOUSING?
_________________________________________________________________________________
Mr. Weiss has represented taxpayers in thousands of administrative tax appeal hearings and has more than 70 published opinions to his credit, including 55 property tax opinions, is co-author of Chapter 64 of the Florida Tax Service 2d, "Agriculture and Other Classified Properties" with Matthew Bender, and a lecturer on property taxation for the National Business Institute.
Showing posts with label property tax exemption. Show all posts
Showing posts with label property tax exemption. Show all posts
Wednesday, August 01, 2007
Monday, May 28, 2007
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.
___________________________________________________________________
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
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.
___________________________________________________________________
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
Friday, May 11, 2007
Florida Property Tax News: Special Legislative Session Addresses Property Tax Dilemma
Property tax consultants are in their glory these days. Instead of causing conversation to grind to a halt, property taxes are suddenly a hot topic at every luncheon, networking meeting and cocktail party. So, in the spirit of gathering our rosebuds while we may, what follows is the latest scuttlebutt on what may be offered in terms of property tax reform at the about-to-be-convened special session of the Florida legislature.
Those in the know are already aware that the special session of June 12-23 has been scheduled for the purpose of resolving the impasse between the State House and Senate about what to do to cure inequities in Florida’s property tax system.
At the start of the regular legislative session, Florida House Speaker Marco Rubio (R-West Miami) unveiled a plan intended to eliminate all property taxes on homestead residences. This was to be accomplished by raising sales tax by as much as 2.5 cents to 8.5 cents on the dollar.
The Florida Senate and Governor Charlie Crist opposed the sales-tax increase. Since no alternative plan was approved by both House and Senate, the 11-day special session will be the legislature’s last chance this year to resolve the property tax conundrum.
In the event no consensus comes out of the special session, Florida’s regular 20-year constitutional revision commission is expected to be called upon to address the property tax puzzle. Indeed, since many of the property tax bills filed during the regular legislative session have constitutional implications, the revision commission will have a multiplicity of property tax issues to discuss in any event.
Watch for the Senate’s first female president--and one of our favorite role models--Senator Gwen Margolis (D-N. Dade) to play a leadership role in the constitutional revision commission’s discussion of property tax reform. Sen. Margolis is a former chair of the Miami-Dade County Commission and the Miami-Dade County Value Adjustment Board, and is a property tax maven of the first order.
To get back to the legislature’s special session, it is apparent that Speaker Rubio will be prepared to abandon the trade-off of sales taxes for complete exemption for homesteads. Rubio is floating a new plan to cut property taxes by dramatically increasing the state's homestead exemption and giving a break to all other property owners.
Under Rubio’s revised plan, Florida homeowners would no longer have to pay property taxes on as much as 80% of the first $300,000 in value of their primary—or homestead—residence. The concept of linking property-tax cuts to a percentage of property values appears to be one which will garner philosophical and economic support in both the House and Senate. This cross-chamber, cross-party popularity distinguishes the increase in homestead benefit from the sales tax increase idea, which is traditionally regarded as regressive, having a disproportionate impact on wage earners, since a larger percentage of their disposable income would be consumed by a 40% increase in the level of sales taxes.
Watch this space for discussion of more Florida property tax news as it develops.
_______________________________________________________
Daniel A. Weiss has over 26 years experience as a Florida property tax attorney. Daniel Weiss was named in the 2007 Annual Edition of the South Florida Legal Guide as one of the top lawyers in the practice area of Real Estate - Land Use, Zoning & Environmental.
For a free consultation regarding your property, contact Click here
Those in the know are already aware that the special session of June 12-23 has been scheduled for the purpose of resolving the impasse between the State House and Senate about what to do to cure inequities in Florida’s property tax system.
At the start of the regular legislative session, Florida House Speaker Marco Rubio (R-West Miami) unveiled a plan intended to eliminate all property taxes on homestead residences. This was to be accomplished by raising sales tax by as much as 2.5 cents to 8.5 cents on the dollar.
The Florida Senate and Governor Charlie Crist opposed the sales-tax increase. Since no alternative plan was approved by both House and Senate, the 11-day special session will be the legislature’s last chance this year to resolve the property tax conundrum.
In the event no consensus comes out of the special session, Florida’s regular 20-year constitutional revision commission is expected to be called upon to address the property tax puzzle. Indeed, since many of the property tax bills filed during the regular legislative session have constitutional implications, the revision commission will have a multiplicity of property tax issues to discuss in any event.
Watch for the Senate’s first female president--and one of our favorite role models--Senator Gwen Margolis (D-N. Dade) to play a leadership role in the constitutional revision commission’s discussion of property tax reform. Sen. Margolis is a former chair of the Miami-Dade County Commission and the Miami-Dade County Value Adjustment Board, and is a property tax maven of the first order.
To get back to the legislature’s special session, it is apparent that Speaker Rubio will be prepared to abandon the trade-off of sales taxes for complete exemption for homesteads. Rubio is floating a new plan to cut property taxes by dramatically increasing the state's homestead exemption and giving a break to all other property owners.
Under Rubio’s revised plan, Florida homeowners would no longer have to pay property taxes on as much as 80% of the first $300,000 in value of their primary—or homestead—residence. The concept of linking property-tax cuts to a percentage of property values appears to be one which will garner philosophical and economic support in both the House and Senate. This cross-chamber, cross-party popularity distinguishes the increase in homestead benefit from the sales tax increase idea, which is traditionally regarded as regressive, having a disproportionate impact on wage earners, since a larger percentage of their disposable income would be consumed by a 40% increase in the level of sales taxes.
Watch this space for discussion of more Florida property tax news as it develops.
_______________________________________________________
Daniel A. Weiss has over 26 years experience as a Florida property tax attorney. Daniel Weiss was named in the 2007 Annual Edition of the South Florida Legal Guide as one of the top lawyers in the practice area of Real Estate - Land Use, Zoning & Environmental.
For a free consultation regarding your property, contact Click here
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.
_______________________________________________________
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
While this is not invariably the case, the taxpayer should always pay attention to what he is being asked by the local official, lest it be used as a fishing expedition to defend the assessment, rather than as an opportunity to consider reducing it.
During 26 years of property tax practice, I have developed the following guidelines to help taxpayers decide whether to handle their own property tax appeals.
Taxpayers should represent themselves if:
1. There exists a provable factual error upon which the property tax assessment is based, such as incorrect legal description, erroneous measurement of land or improvements; or
2. The stakes are so low that no professional tax representative is willing to take on the job.
The taxpayer may feel comfortable making an appointment to see the local government official responsible for the property tax assessment and review with her or him the following possible property tax assessment errors:
1. Inaccurate property description or dimensions.
2. Clerical errors.
3. Mathematical errors.
Other issues that the taxpayer may want initially to personally address to the property appraiser, but may want to hire a professional for before proceeding to hearing, include:
1. Failure to consider needed repairs, including hurricane repairs.
2. Failure to consider value-reducers like difficult ingress and egress, easements, drainage problems, heavy traffic areas, nearby railroad tracks, expressways, industry or noxious uses.
3. Lower assessments on similar properties in the neighborhood. Although market value is generally the controlling standard, by law, taxation must be fair and equitable.
4. Failure to depreciate for negative factors (deferred maintenance, age and quality of materials, poor workmanship, spalling, cracks or deterioration, defective or outmoded materials or construction, physical, functional or economic obsolescence of land or improvements).
In general, it is well to consider hiring a professional to prepare and advance the following property tax appeal claims:
1. Income producing property overassessed.
2. Failure to recognize decreased value due to downward trend in the real estate market.
3. Unlawful assessments, such as double assessment of common areas both to individual owners and to homeowners or condominium association.
4. Exemptions or exceptions to full value taxation (including agricultural classification) not applied or not properly applied to the property.
General rules governing the decision whether to employ a professional for your property tax appeals:
A. Commercial properties, including vacant as well as developed property, should be reviewed annually with a professional as soon as the notice of proposed taxes is issued (in Florida, for example, this occurs in August). Most property tax professionals work on a contingency basis. This gives you an assurance that you are not investing in a tax appeal that is frivolous, since your agent gets no fee unless a reduction is obtained.
B. Taxpayers with unusual professional training or background, such as real estate investors, brokers, agents, accountants or attorneys, may obtain equal or better results than a hired gun, especially considering their enhanced familiarity with the negatives of the property, increased personal investment in the property, and net gain from not paying a professional fee from the tax savings obtained.
In conclusion, as is true of many government processes, property tax appeals may best be handled by professionals. This is particularly true since most property tax agents work on a contingency fee basis. This means that no fee is earned unless an assessment reduction is achieved. Certain claims may be handled just as well by taxpayers themselves, particularly claims based on provable factual errors made by the county property appraiser, such as errors in measurement of the size of land or building which can be demonstrated through sealed survey or sketch or architectural renderings.
If in doubt, review your property tax assessment with a professional. As in other contingency-fee industries, initial consultation is frequently free of charge.
_______________________________________________________
Daniel A. Weiss has over 26 years experience as a Florida property tax attorney. Daniel Weiss was named in the 2007 Annual Edition of the South Florida Legal Guide as one of the top lawyers in the practice area of Real Estate - Land Use, Zoning & Environmental.
For a free consultation regarding your property, contact Click here
How Does the County Property Appraiser Value My Property?
How does the County Property Appraiser arrive at the value for my property annually?
To find the value of a property, the Appraiser must first know the use and condition of the property, what properties similar to it are selling for, what it would cost today to replace it, how much it takes to maintain, what income it may produce, and other factors affecting its value.
The market value statute contains a list of 8 factors which the Appraiser must at least consider regarding each property.
Considering these factors, the Property Appraiser assesses the property’s value. The three approaches to value are:
#1. Comparable Sales (Market) Approach - One way to assess the property’s value is to find properties like yours, located in your neighborhood, which have been sold recently. According to the State Department of Revenue, the Appraiser should NOT use sales which occur after January 1 of the tax year in question.
Selling prices of comparable properties, however, must be carefully analyzed in order to get an accurate indication of the applicability vis-a-vis your particular property.
#2. Cost Approach - A second way is based on how much money it would take, at current material and labor costs, to replace your property with one just like it. If your property is not new, the Appraiser must also determine how much it has depreciated.
#3. Income (Economic) Approach - A third approach is used if you own property that provides rental income. These include apartment buildings, retail uses, offices, and warehouses. Here the Property Appraiser must consider actual and market operating expenses, insurance, maintenance, and the return most people would expect to get on the particular type of property.
What causes your home’s assessed value to change? Property tax is based upon the value of your property. When the market value of your property changes, so does your appraised value.
A property’s value can change for many reasons. The most frequent cause of a change in value is a change in the market.
As older neighborhoods are discovered and gentrified by new buyers, prices increase as the neighborhood becomes more popular. In a recession, larger homes may stay on the market for a longer time, more affordable homes phase into demand, and their prices rise accordingly. In a stable neighborhood, with no extraordinary pressure from the market, inflation may increase property values.
If you were to increase the total market value of your property by adding a swimming pool, additional bedroom, extra feature or square footage or other the appraised value would increase proportionately. Similarly, should your property’s value be decreased by hurricane, fire or other calamity, the appraised value would decrease to reflect the downward impact of such damage on the market value of the property.
State law requires the Miami-Dade County to appraise property at 100% market value. This usually translates to 85 - 90% of gross purchase price, after statutory adjustments, including household goods and costs of sale.
The Florida Department of Revenue by law is responsible for the overall supervision of assessment and collection of taxes statewide. The Department conducts an in-depth audit of the tax roll every other year to ensure compliance. If the levels of assessment do not comply with law, the tax assessment roll will not be approved.
What steps should the taxpayer take if he or she feels his property tax assessment exceeds market value or is discriminatory as compared to similar properties in a homogeneous area or neighborhood?
A Notice of Proposed Taxes (TRIM--Truth in Millage--notice) is mailed to all property owners throughout Florida between the second and fourth weeks of August annually.
The notice states the assessed value of the property, the exempt value, and expected tax bill, depending on whether the proposed budgets are approved by the various taxing authorities, i.e., millage-setting entities. These include the county, the municipality (if any), water management distrtict and any special taxing districts.
Note well that any Value Adjustment Board petition--a/k/a tax appeal--must be FILED within 25 days of the MAILING of the Notice of Proposed Taxes.
Dyring this period of 25 calendar days after the mailing of the notice, the Appraiser’s office will provide property owners with an explanation of their assessed value. This is called the conference or open roll period.
If your opinion of the value of your property differs from the Property Appraiser's, you may visit the Appraiser's office and discuss the matter. If you have information to show that the appraised value is above the market value of your property, a review will be conducted .
The review can address the following:
• verification of your property record information ;
• review of assessmeny methodolgy used to value your property;
• determination whether the property qualifies for any exemptions;
• appeal process;
• comparison with values of similar properties in your neighborhood.
After talking with theProperty Appraisal representative, if you still find a significant difference between the assessed value and what you belive your property’s market value is, you may file a petition to be heard by the Value Adjustment Board, typically represented by an experienced independent appraiser--not a department employee--serving as special magistrate.
When you receive your assessment notice in mid- or late-August, read it for instructions about deadlines and filing procedures. If you need clarification, call the Property Appraiser’s office. Be sure you understand and follow instructions. A missed deadline or incorrect filing can cause an appeal to be dismissed.
Deadlines are also crtical regarding the submission of documentary evidence in advance of hearing after you timely file your appeal.
An assessment appeal is an attempt to prove that the estimated market value of your property is either inaccurate or unfair. You are required to present evidence supporting your estimate of market value to the Value Adjustment Board.
The Value Adjustment Board has no jurisdiction or control over taxes or tax rates. Its only function is to hear evidence as to whether petitioned properties are assessesd in excess of market value.
If such is the case, the Board has the authority to reduce the appraised value. They cannot change your appraised value based on hardship or any other such other reason. The Board also hears appeals of of exemption denials, both homestead and charitable. Agricultural classification applications which are denied in whole or in part are also appealable to the Value Adjustment Board.
_______________________________________________________
Daniel A. Weiss has over 26 years experience as a Florida property tax attorney. Daniel Weiss was named in the 2007 Annual Edition of the South Florida Legal Guide as one of the top lawyers in the practice area of Real Estate - Land Use, Zoning & Environmental.
For a free consultation regarding your property, contact Click here
To find the value of a property, the Appraiser must first know the use and condition of the property, what properties similar to it are selling for, what it would cost today to replace it, how much it takes to maintain, what income it may produce, and other factors affecting its value.
The market value statute contains a list of 8 factors which the Appraiser must at least consider regarding each property.
Considering these factors, the Property Appraiser assesses the property’s value. The three approaches to value are:
#1. Comparable Sales (Market) Approach - One way to assess the property’s value is to find properties like yours, located in your neighborhood, which have been sold recently. According to the State Department of Revenue, the Appraiser should NOT use sales which occur after January 1 of the tax year in question.
Selling prices of comparable properties, however, must be carefully analyzed in order to get an accurate indication of the applicability vis-a-vis your particular property.
#2. Cost Approach - A second way is based on how much money it would take, at current material and labor costs, to replace your property with one just like it. If your property is not new, the Appraiser must also determine how much it has depreciated.
#3. Income (Economic) Approach - A third approach is used if you own property that provides rental income. These include apartment buildings, retail uses, offices, and warehouses. Here the Property Appraiser must consider actual and market operating expenses, insurance, maintenance, and the return most people would expect to get on the particular type of property.
What causes your home’s assessed value to change? Property tax is based upon the value of your property. When the market value of your property changes, so does your appraised value.
A property’s value can change for many reasons. The most frequent cause of a change in value is a change in the market.
As older neighborhoods are discovered and gentrified by new buyers, prices increase as the neighborhood becomes more popular. In a recession, larger homes may stay on the market for a longer time, more affordable homes phase into demand, and their prices rise accordingly. In a stable neighborhood, with no extraordinary pressure from the market, inflation may increase property values.
If you were to increase the total market value of your property by adding a swimming pool, additional bedroom, extra feature or square footage or other the appraised value would increase proportionately. Similarly, should your property’s value be decreased by hurricane, fire or other calamity, the appraised value would decrease to reflect the downward impact of such damage on the market value of the property.
State law requires the Miami-Dade County to appraise property at 100% market value. This usually translates to 85 - 90% of gross purchase price, after statutory adjustments, including household goods and costs of sale.
The Florida Department of Revenue by law is responsible for the overall supervision of assessment and collection of taxes statewide. The Department conducts an in-depth audit of the tax roll every other year to ensure compliance. If the levels of assessment do not comply with law, the tax assessment roll will not be approved.
What steps should the taxpayer take if he or she feels his property tax assessment exceeds market value or is discriminatory as compared to similar properties in a homogeneous area or neighborhood?
A Notice of Proposed Taxes (TRIM--Truth in Millage--notice) is mailed to all property owners throughout Florida between the second and fourth weeks of August annually.
The notice states the assessed value of the property, the exempt value, and expected tax bill, depending on whether the proposed budgets are approved by the various taxing authorities, i.e., millage-setting entities. These include the county, the municipality (if any), water management distrtict and any special taxing districts.
Note well that any Value Adjustment Board petition--a/k/a tax appeal--must be FILED within 25 days of the MAILING of the Notice of Proposed Taxes.
Dyring this period of 25 calendar days after the mailing of the notice, the Appraiser’s office will provide property owners with an explanation of their assessed value. This is called the conference or open roll period.
If your opinion of the value of your property differs from the Property Appraiser's, you may visit the Appraiser's office and discuss the matter. If you have information to show that the appraised value is above the market value of your property, a review will be conducted .
The review can address the following:
• verification of your property record information ;
• review of assessmeny methodolgy used to value your property;
• determination whether the property qualifies for any exemptions;
• appeal process;
• comparison with values of similar properties in your neighborhood.
After talking with theProperty Appraisal representative, if you still find a significant difference between the assessed value and what you belive your property’s market value is, you may file a petition to be heard by the Value Adjustment Board, typically represented by an experienced independent appraiser--not a department employee--serving as special magistrate.
When you receive your assessment notice in mid- or late-August, read it for instructions about deadlines and filing procedures. If you need clarification, call the Property Appraiser’s office. Be sure you understand and follow instructions. A missed deadline or incorrect filing can cause an appeal to be dismissed.
Deadlines are also crtical regarding the submission of documentary evidence in advance of hearing after you timely file your appeal.
An assessment appeal is an attempt to prove that the estimated market value of your property is either inaccurate or unfair. You are required to present evidence supporting your estimate of market value to the Value Adjustment Board.
The Value Adjustment Board has no jurisdiction or control over taxes or tax rates. Its only function is to hear evidence as to whether petitioned properties are assessesd in excess of market value.
If such is the case, the Board has the authority to reduce the appraised value. They cannot change your appraised value based on hardship or any other such other reason. The Board also hears appeals of of exemption denials, both homestead and charitable. Agricultural classification applications which are denied in whole or in part are also appealable to the Value Adjustment Board.
_______________________________________________________
Daniel A. Weiss has over 26 years experience as a Florida property tax attorney. Daniel Weiss was named in the 2007 Annual Edition of the South Florida Legal Guide as one of the top lawyers in the practice area of Real Estate - Land Use, Zoning & Environmental.
For a free consultation regarding your property, contact Click here
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
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
Thursday, January 11, 2007
MARCH 1st IS FLORIDA’S FILING DEADLINE FOR AGRICULTURAL CLASSIFICATION & CHARITABLE, RELIGIOUS AND EDUCATIONAL EXEMPTIONS!
March 1 is the annual filing deadline for property tax exemption in Florida. This includes not only the homestead exemption, but also charitable, religious, educational scientific and literary exemptions, as well as agricultural classification.
Here are a few FAQs related to Florida's valuable exemptions and exceptions from full-value property taxation.
The Property Appraiser’s Office in each county administers property tax savings on properties that qualify for Florida’s exemptions. Eligible properties are those which are owned by a nonprofit entity and used exclusively or predominantly for qualifying non-profit purposes. If used exclusively for qualifying purposes, applicants otherwise eligible for exemption may find the taxes on the property wholly ELIMINATED, irrespective of its value. Note that nonprofit is not synonymous with 501 ©(3) classification under the federal Internal Revenue Code.
The two exceptions to this rule are educational and agricultural properties, which are discussed separately below.
Educational properties must be accredited educational institutions. If owned by a for-profit entity, tax savings must be passed through to the qualifying operator of the educational institution in order to be eligible for exemption. The property must be used exclusively—not just predominantly—for educational purposes in order to qualify. That said, the structure to be used for educational purposes need not yet be constructed, provided “affirmative steps have been taken to prepare the property for educational use” by January 1st of the tax year. Consult the county Property Appraiser or a property tax consultant to ascertain whether a particular property qualifies.
Agricultural classification is not an exemption but an exception to full value taxation. The benefits conferred may reduce the taxes on the property so dramatically that “ag” classification is frequently referred to as an exemption. In order to qualify, land must be used for good faith commercial agricultural purposes as of the January 1st assessment date. Because commercial use is required, nonprofit ownership is not a requirement. Again, consult the county Property Appraiser or a property tax consultant to ascertain whether a particular property qualifies.
For a more complete discussion of agricultural classification, go to your local law
library and consult Chapter 64 of Matthew Bender’s Florida Tax Service 2d, titled
“Agricultural and Other Classified Properties,” co-authored by your faithful
blogger.
To review a list of agricultural classification judicial decisions and opinions in
cases litigated by undersigned counsel,
click here.
Other special classes of property under Florida law are pollution control devices;
high-water recharge lands; conservation easements, environmentally endangered
lands, lands used for recreational or park purposes when land development
rights have been conveyed or conservation restrictions have been covenanted;
building renovations for accessibility to the physically handicapped; historic
property used for commercial or certain nonprofit purposes; historically
significant properties when development rights have been conveyed or historic
preservation restrictions have been covenanted; and mineral, oil, gas and other
subsurface rights (which are separately assessed from the other interests in
land).
The deadline for filing all applications for exemption and for agricultural
classification is March 1st each year. Bear in mind that FILING means actual
receipt by the Property Appraiser—NOT just mailing. The safest way to prove
date of filing is to hand-deliver and retain a date-stamped copy or mail with
return receipt requested.
I cannot tell you how many exemptions have been forfeited because an applicant could not prove filing of a timely application. A word to the wise is sufficient.
Finally, missing the March 1st filing deadline is no longer necessarily fatal to your claim. State regulations now provide for filing as late as August or September upon a showing of extenuating circumstances, provided that you also file a value adjustment board petition to trigger a hearing on your claim of extenuating circumstances. Consult a property tax consultant if such circumstances exist. Do not simply rely on the county Property Appraiser in such circumstances, since many are inclined simply to state that if you have not filed by March 1st, you have missed the statutory deadline. This statement, while accurate, is far from complete.
___________________________________________________________________________________
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.
Here are a few FAQs related to Florida's valuable exemptions and exceptions from full-value property taxation.
The Property Appraiser’s Office in each county administers property tax savings on properties that qualify for Florida’s exemptions. Eligible properties are those which are owned by a nonprofit entity and used exclusively or predominantly for qualifying non-profit purposes. If used exclusively for qualifying purposes, applicants otherwise eligible for exemption may find the taxes on the property wholly ELIMINATED, irrespective of its value. Note that nonprofit is not synonymous with 501 ©(3) classification under the federal Internal Revenue Code.
The two exceptions to this rule are educational and agricultural properties, which are discussed separately below.
Educational properties must be accredited educational institutions. If owned by a for-profit entity, tax savings must be passed through to the qualifying operator of the educational institution in order to be eligible for exemption. The property must be used exclusively—not just predominantly—for educational purposes in order to qualify. That said, the structure to be used for educational purposes need not yet be constructed, provided “affirmative steps have been taken to prepare the property for educational use” by January 1st of the tax year. Consult the county Property Appraiser or a property tax consultant to ascertain whether a particular property qualifies.
Agricultural classification is not an exemption but an exception to full value taxation. The benefits conferred may reduce the taxes on the property so dramatically that “ag” classification is frequently referred to as an exemption. In order to qualify, land must be used for good faith commercial agricultural purposes as of the January 1st assessment date. Because commercial use is required, nonprofit ownership is not a requirement. Again, consult the county Property Appraiser or a property tax consultant to ascertain whether a particular property qualifies.
For a more complete discussion of agricultural classification, go to your local law
library and consult Chapter 64 of Matthew Bender’s Florida Tax Service 2d, titled
“Agricultural and Other Classified Properties,” co-authored by your faithful
blogger.
To review a list of agricultural classification judicial decisions and opinions in
cases litigated by undersigned counsel,
click here.
Other special classes of property under Florida law are pollution control devices;
high-water recharge lands; conservation easements, environmentally endangered
lands, lands used for recreational or park purposes when land development
rights have been conveyed or conservation restrictions have been covenanted;
building renovations for accessibility to the physically handicapped; historic
property used for commercial or certain nonprofit purposes; historically
significant properties when development rights have been conveyed or historic
preservation restrictions have been covenanted; and mineral, oil, gas and other
subsurface rights (which are separately assessed from the other interests in
land).
The deadline for filing all applications for exemption and for agricultural
classification is March 1st each year. Bear in mind that FILING means actual
receipt by the Property Appraiser—NOT just mailing. The safest way to prove
date of filing is to hand-deliver and retain a date-stamped copy or mail with
return receipt requested.
I cannot tell you how many exemptions have been forfeited because an applicant could not prove filing of a timely application. A word to the wise is sufficient.
Finally, missing the March 1st filing deadline is no longer necessarily fatal to your claim. State regulations now provide for filing as late as August or September upon a showing of extenuating circumstances, provided that you also file a value adjustment board petition to trigger a hearing on your claim of extenuating circumstances. Consult a property tax consultant if such circumstances exist. Do not simply rely on the county Property Appraiser in such circumstances, since many are inclined simply to state that if you have not filed by March 1st, you have missed the statutory deadline. This statement, while accurate, is far from complete.
___________________________________________________________________________________
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.
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.
__________________________________________________________________________________
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 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.
__________________________________________________________________________________
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.
Saturday, January 06, 2007
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.
_____________________________________________________
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.
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.
_____________________________________________________
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.
Saturday, December 23, 2006
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?
______________________________________________________
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.
--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?
______________________________________________________
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.
Subscribe to:
Posts (Atom)
Posts
