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

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

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

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

196.031 Exemption of homesteads.—

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

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

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

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

2. Factual indicia of continuing permanent residence;

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

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

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

6. Any changes in applicable law.

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

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

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

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

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

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

For a free consultation regarding your property, contact us.

For More Information Click here

Florida Property Tax News: Florida Property Tax Committee Proceedings

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

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

The Committee’s Charge

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

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

Topics Addressed

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

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

Further Proceedings

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

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

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


__________________________________________________
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: Legislature Provides Tax Relief on Homestead Property Damaged or Destroyed by Misfortune or Calamity, Including Hurricanes

It’s an ill wind that blows no good.
--English proverb

The ill winds of Hurricane Katrina and Hurricane Wilma at least motivated the Florida Legislature to provide property tax relief to homestead residents. In rebuilding homestead property, no additional assessment valuation will be added to homestead property if the square footage is increased by 10% or less or if the building is rebuilt to 1,500 square feet or less.

This statutory amendment provides relief only where all or a portion of homestead property is damaged or destroyed by misfortune or calamity. Voluntary demolition and rebuilding not precipitated by misfortune or calamity does not qualify.

If, however, the damage or destruction of the homestead property results from misfortune or calamity, either of two circumstances will qualify for the relief provided. Because misfortune and calamity are not defined by the statute, it may safely be assumed that these terms will be applied by the courts in accordance with dictionary definitions, unless and until such definitions are narrowed by State Department of Revenue regulations.

Thus, misfortune and calamity may reasonably be understood to include fire, tornado, hurricane, flood and what are frequently referred to in legal documents and literature by the apparently faith-based terminology of “acts of God.”

Given the threshold requirement of misfortune or calamity, tax relief is provided by the Legislature under either of two separate sets of circumstances.

First, if the square footage changed or improved because of the misfortune or calamity does not exceed 110 percent of the square footage before the damage, no additional valuation will be added to the tax assessment roll for the homestead property in question.

In the alternative, and irrespective of the 110% rule, the assessed value shall not increase if the total square footage of the property after it is changed or improved does not exceed 1,500 square feet. This means that even if the house was, say, 1,000 square feet before the misfortune or calamity, rebuilding it to 1,500 square feet will not increase the taxable value. This is noteworthy from a practical standpoint, since it means even an increase of a full 50% or more in size, providing the end result measures 1,500 square feet or less, does not increase the tax base for the homestead property.

These two new statutes are also interesting from a constitutional standpoint. The Florida Constitution provides that all property must be assessed at market value, unless expressly provided otherwise in the Constitution. Market value means the amount that a willing buyer will pay to a willing seller, both fully informed as to the circumstances, and neither under duress to make the transaction.

The question that naturally arises is the following one. Will a 1,000 square foot house have the same market value as a 1,500 square foot house, all other things being equal? Clearly, the answer is no. as with many constitutional questions, this one may never be raised. Remember, legal eagles, only a person with a legally cognizable injury, otherwise known as standing, is authorized to pursue a lawsuit. Intellectual curiosity does not confer standing.

In summary, this new law provides that changes, additions, or improvements that replace all or a portion of homestead property damaged or destroyed by misfortune or calamity shall not increase the assessed value of the homestead if the square footage changed or improved does not exceed 110 percent of the square footage before the damage. Also, the assessed value shall not increase if the total square footage of the property after it is changed or improved doesn’t exceed 1,500 square feet.

The change allows for rebuilding homestead property damaged or destroyed to a total size of 1,500 square feet without any assessment increase. For such buildings the homestead property's assessed value shall be increased by the just value of that portion of the changed or improved homestead property that exceeds 1,500 square feet. That would in effect eliminate the 110 percent rule for properties of less than 1,500 square feet.

___________________________________________________________________________________
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: TOWN HALL MEETINGS REACH SOUTH FLORIDA

Florida property taxpayers are invited to inform their state legislators of their complaints and concerns. On February 12 and 13, taxpayers have the opportunity to speak directly to state lawmakers.


On February 12, State Senate and House members will host a public hearing from 6 to 9 p.m. in Building 6 of Broward Community College's central campus at 3501 S.W. Davie Road, Davie. On February 13, also for 6 to 9 p.m., the same State Senate and House members will be at Miami-Dade College, 300 N.E. Second Ave., downtown Miami, in the Chapman Conference Center.

For details, call 850-487-5920 (not toll-free) or visit www.flsenate.gov. Click on the ''Property tax reform'' icon on the right.
____________________________________________________
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

HOMESTEAD EXEMPTION PROPERTY TAX "TRAP"

During the 2005 session of the Florida Legislature, the homestead property exemption "trap" was identified for the first time. The "trap" consists of the disincentive to relocation due to the consequences of loss of the Save Our Homes "cap" on property already owned combined with the prospect of purchasing another property, giving rise to reassessment and loss of the cap. Many residential property owners feel "trapped" in their present location since costs of the new property--even if a much smaller or much less-valuable property--exceed those of the existing property as a result of the property tax consequences.

The homestead property tax "trap" is the phenomenon which gave rise to no less than three proposals in the 2005 legislative session for "portability" in whole or in part of accumulated Save Ours Homes "cap" benefits accrued on property.

The consequences of the Amendment 10 "cap" are so extreme as a result of 12 years of application since inception that some properties, especially in South Florida, have an assessed or taxable value of less than 1/3 of the fair market value. This means that two identical homes adjacent to each other can--and sometimes do--have tax bills with a 200% variation even though their values and tax (i.e. millage) rates are identical!

Cases in point include the following.

Eileen Rennick, a widow, moved to Century Village in Deerfield Beach in 1999. She became accustomed to paying $104 a year in taxes on a one-bedroom condominium unit. But two years ago, when she moved across the street into a two-bedroom condo unit, her taxes increased by 900%, to $1,040 a year. "It's outrageous," Rennick said, adding that she would not have moved if she had been aware of the dramatic impact of the change in property taxes.

Randy Aube of Boca Raton would like to move to Broward County, but he's afraid he can't afford the taxes. He pays $4,300 a year in property tax on the house he has lived in for six years. If he moves and buys a place of similar value, his property taxes will triple to $14,000.

Aube wrote in a recent letter to State Representative Adam Hasner (R., Delray Beach), "My next-door neighbor, who bought his house a few years after I did, is paying about twice as much [in property taxes]. That just doesn't make any sense. I know this is a huge complicated problem, but if it doesn't get fixed, it's only going to get worse."

Upset about the homestead exemption property tax "trap," South Florida homeowners can address their concerns directly to state legislators of both parties at town hall-type meetings across the state in the ensuing months. Eight town hall-style hearings are scheduled. See this blog for dates and times of hearings in Fort Lauderdale and Miami during the second week of February.

The hearings will provided grist for the legislative mill in the upcoming session, which will start in March.

Newly-elected Governor Charlie Crist and many legislators want to reduce taxes people pay on their homes. They are discussing a constitutional amendment that legislators would propose and voters approve or disapprove in statewide elections to be held as early as this summer. The proposal, among other things, would double the current $25,000 homestead exemption, which lowers the assessed and taxable value of a home. Under the existing exemption, the owner of a $200,000 house pays property tax on $175,000 of that value. If such a proposal passes, the taxable value would be reduced to $150,000.

The Republican governor also wants to let homeowners take some or all of their so-called "Save Our Homes" tax savings if they move. A 13-year-old constitutional provision caps tax increases at 3 percent a year (or the cost-of-living increase, whichever is less) no matter how much the value of a home increases. But those savings are lost when a homeowner moves, and the cap doesn't apply to businesses, rental properties or vacation homes.

This month, Crist and legislators concurred on changes to cut property insurance rates. Property tax issues promise to be hinkier and more controversial.

Local government officials say tax cuts of any significance will reduce public funds avalable for local parks, salaries of police officers and firefighters and other essential public services.

Lauderdale Lakes Finance Director Larry Tibbs is among those who are worried. He says if homestead exemptions are doubled, his city alone would lose more than $1 million annually. Mr. Tibbs said, "To make up that difference, Lauderdale Lakes would have to raise the millage rate."

Consequences would be even worse for Miami-Dade County municipalities which have a stable and predominant tax base of homes owned by permanent residents. North Miami and South Miami quickly come to mind.

Governor Crist cogently suggests that local governments, which have expanded their budgets during the past several years due to swollen tax bases resulting from a booming real estate market, should pull in their belts and spend less.

"They are going to have to have a little more discipline at the local level to help the people," said Governor Crist.

Some Republican legislators joined the chorus of those calling for spending cuts by cities, counties and other taxing authorities. They say total property taxes levied at the local level ascended from $16.6 billion in 2001 to $30.4 billion in 2006, an 83.1% increase that nearly septupled the 12% population growth during the same period.

"Florida doesn't have a revenue problem. We have a spending problem,"
said Senator Mike Haridopolous (R., Indialantic), chairman of the Senate Finance and Tax Committee.

Palm Beach County resident Larry Zalkin, who serves on a county advisory board, agrees that it's time for Florida to reduce property taxes, even if it means slashing city and county budgets. "This is the ideal time to fix the situation" by sharing budget surpluses with the public which funded them, opined Mr. Zalkin.

The property tax debate is gaining momentum after fizzling during the 2005 legislative session. State legislative leadership says everything is on the table, even though House Speaker Marco Rubio insists any tax cuts be across the board and be combined with stringent spending caps for cities, counties and school districts.

"[Property tax cuts] have to help the owner of the apartment building, so that hopefully they'll pass it through to their tenant. It also has to help the owner of the laundromat or the dry-cleaning store at the corner," said Rubio (R., West Miami).

For better or worse, watch for the 2006 legislative session to study all, and implement some, of the proposals advanced by the Property Tax Reform Committee appointed last year by outgoing Governor Jeb Bush. The Committee was created by executive fiat after the 2005 session of the Legislature did little to address the property tax inequities engendered by the Save Our Homes constitutional amendment approved by Florida voters in 1994.

__________________________________________________________________________________
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

CELEBRITY PROPERTY TAX ASSESSMENT: JAMES POSEY

Ever catch a glimpse of Miami Heat forward James Posey hanging out in Coconut Grove? Ever wonder why he hangs there?

Well, for your information, he lives in the Grove. At Cloisters on the Bay Condominium, to be exact. See his tax assessment information below.

P.S. If you ever wondered who the appellate zoning attorney was who successfully defended the City of Miami's zoning approval for the Cloisters--what, you don't give a hoop? well, you're about to find out anyway--it was, drum roll, please: your own faithful blogger!


01-4121-227-0010
Property: 3471 MAIN HWY 515
Mailing Address: JAMES M POSEY JR

3471 MAIN HWY #515 MIAMI FL
33133-5929

Property Information: Primary Zone: 0100 SINGLE FAMILY RESIDENCE
CLUC: 0007 RESIDENTIAL- CONDOMINIUM
Beds/Baths: 3/3
Floors: 0
Living Units: 1
Adj Sq Footage: 5,090
Lot Size: 0 SQ FT
Year Built: 2002
Legal Description: CLOISTERS ON THE BAY CONDO UNIT 501 UNDIV 5090/152798 INT IN COMMON ELEMENTS OFF REC 20540-2365 COC 23900-2276 10 2005 1

Sale Information: Sale O/R: 23900-2276
Sale Date: 10/2005
Sale Amount: $2,170,000

Assessment Information: Year: 2006 2005
Land Value: $0 $0
Building Value: $0 $0
Market Value: $1,738,530 $1,738,530
Assessed Value: $1,738,530 $1,738,530
Total Exemptions: $0 $0
Taxable Value: $1,738,530 $1,738,530

____________________________________________________________________________________
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

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.

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: 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.
____________________________________________________
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.

__________________________________________________________________________________
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

CELEBRITY PROPERTY TAX ASSESSMENT: WILLIS MCGAHEE

Buffalo Bills running back and former University of Miami Hurricane Willis McGahee owns a pied a terre in Coconut Grove. Wonder where it is/ Read on.


Summary Details: Folio No.: 01-4121-216-1070
Property: 3400 SW 27 AVE 1406
Mailing Address: WILLIS MCGAHEE

3400 SW 27 AVE #1406 MIAMI FL
33133-5322

Property Information: Primary Zone: 3900 MULTI-FAMILY, MEDIUM DENSITY RESIDENTIAL
CLUC: 0007 RESIDENTIAL- CONDOMINIUM
Beds/Baths: 2/2
Floors: 0
Living Units: 1
Adj Sq Footage: 1,540
Lot Size: 0 SQ FT
Year Built: 2001
Legal Description: THE TOWER RESIDENCES CONDO UNIT 1406 UNDIV .006801% INT IN COMMON ELEMENTS OFF REC 19943-4300 OR 20016-3867 10 2001 1

Sale Information: Sale O/R: 23306-2480
Sale Date: 4/2005
Sale Amount: $665,000

Assessment Information: Year: 2006 2005
Land Value: $0 $0
Building Value: $0 $0
Market Value: $464,490 $464,490
Assessed Value: $464,490 $464,490
Total Exemptions: $0 $0
Taxable Value: $464,490 $464,490


___________________________________________________
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.
_____________________________________________________
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?
______________________________________________________
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.
______________________________________________________
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.

_____________________________________________________
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: 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

WESLEY SNIPES AT IRS; IRS SNIPES BACK!

Who among us has not fantasized how much better life would be without the big bite the IRS takes out of our earnings? Whose mind has not meandered back in time to think of how the robber barons of the late 19th and early 20th centuries amassed their family fortunes untrammeled by the dampening effect of income taxes?

Yet who but Wesley Snipes and a few other intrepid characters have had the gall to request $12 million in federal income tax refunds and to fail to file federal income tax returns for years on the purported basis that the IRS has no right to tax income earned in the U.S.?

Don't know what I'm talking about? Well, let's backtrack a few steps to fill you in on the latest great case of alleged tax fraud, before we proceed to discuss the relationship between the Wesley Snipes saga and your property taxes.

In short, two weeks ago, top box office draw Wesley Snipes was indicted on federal criminal charges for his alleged role in a bizarre tax avoidance scheme that allegedly included his seeking $12 million in fraudulent refunds and failing to file tax returns for 6 years.

An eight-count indictment filed in U.S. District Court in Ocala, Florida, and unsealed on October 17, charged Snipes, his former accountant, and a third defendant with attempting to defraud the government by claiming that his substantial income was immune from taxation.

The indictment alleges that Snipes conspired with one other person in addition to former certified public accountant Douglas Rosile in the scam. The third person indicted is the founder of a Florida corporation (now known as Guiding Light of God Ministries) which, it is alleged, "promoted and sold fraudulent tax schemes."

The essence of the claim on which the alleged fraud is based is that U.S. citizens can be taxed only on income earned from certain foreign-based activities and not on money made in the U.S. This claim is known as the "861 argument." The name derives from the section of the internal revenue code to which it refers. Unfortunately, the argument has been resoundingly rejected by the Internal Revenue Service. As part of the alleged scheme, Snipes filed amended tax returns seeking $12 million in refunds on taxes he paid in 1996 and 1997.

Snipes's participation in the bold effort at tax avoidance came to the fore in 2002, when the Department of Justice sought an injunction against Snipes's former CPA. As an exhibit to the motion for restraining order, DOJ attached a copy of Snipes's amended 1997 tax return, which his CPA had prepared. To review the amended return, click here

Snipes sought a $7.3 million refund of taxes previously paid on his $19.2 million in 1997 earnings. The amended return was premised on the assertion that the star's income was "not from a taxable source." The form contained a charmingly revised affirmation next to the form's signature line. The return was (unlike yours and mine)
filed "Under no penalties of perjury."

So what's all this have to do with property taxes, the subject matter of this blog, you ask? Well, the answer is that it invites us to take another look at Benjamin Franklin's coinage, "Nothing's inevitable save death and taxes." And it invites us to steer a middle course between the government's position on property taxes--which the layman frequently assumes is, "They'll take as much as they can get" and Wesley Snipes's approach, which evidently was, "They're not going to get anything from me."

We've said it before. Now we'll say it again. While liability for some amount of taxes may be inevitable, the amount of taxes you pay is not inevitable. It is subject to study and review and planning. On the federal income tax side, this is work to be done with your accountant. On the property tax side, this is work to be done with your property tax lawyer or other professional.

One cheerful development in our practice is that we find more and more taxpayers consulting us on property tax issues before they act rather than after. This means before demolition and reconstruction of a homestead residence, or prior to sale or purchase of commercial, industrial or residential property; any time valuable property tax benefits may be at stake.

So don't learn only from your own mistakes. Learn from Wesley Snipes's predicament, too. Work with your property tax professional to try to trim your taxes--but take a leaf from Benjamin Franklin, too, and don't expect to eliminate your taxes altogether!

The next entry of this blog will be an edition of Florida Property Tax News describing two property tax reductions we recently obtained on land valuations in Orange County, Florida, reducing one assessment from $96,000 to a nominal $1,000 and the second from $48,000 to $1,000. We didn't eliminate the taxes altogether, but we got pretty close!
__________________________________________________________________________________
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

What time of year is it?

It's Florida property tax news time. From August through November, newspaper real estate editors, business columnists, and journalists looking for topics of popular interest turn to property taxes for these four months of the year.

Why? I'll tell you why. During these four months, all 67 county property appraisers in Florida send out all their notices of proposed taxes--for each of the millions of parcels of real estate and tangible personal property--to every property owner; 67 county value adjustment boards receive between 0 and 40,000 petitions for tax appeals each; the property appraisers rspond to taxpayer inquiries; real and tangible tax rolls are certified by the property appraiser to the tax collector for collection; the tax collector sends out a bill for every parcel, and begins the collection process, starting in November, the month during which payments received garner a 4% discount.

So, from time to time between now and November, we will be featuring topics in Florida property tax news which attract the attention of the taxpaying public, and of those journailsts who write for that public.

While you're waiting for the first installment from Florida property tax news to be broadcast from this blog, take a moment to peruse my comments and the keen analytical reportage of the real estate editor of The Miami Herald in the article to which we provide a link below, titled "Property Taxes Crimp Affordability of Homes."

click here


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Daniel A. Weiss is a former Attorney Special Master for the Miami-Dade County Value Adjustment Board. Mr. Weiss now represents commercial, institutional charitable, commercial, high-end residential, agricultural and municipal taxpayers at VAB proceedings throughout the State of Florida. Mr. Weiss handles both valuation and legal claims.

Mr. Weiss has over 25 years property tax experience. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 as a Miami-Dade Assistant County Attorney and has since represented taxpayers in property tax matters.

Mr. Weiss appears as one of Florida's Super Lawyers 2006 in the publication of the same name. He was named by his peers as 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 APPEALS: PROCEED AT YOUR OWN RISK!

Disclaimer: 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 an 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 is a former Attorney Special Master for the Miami-Dade County Value Adjustment Board. Mr. Weiss now represents commercial, institutional charitable, commercial, high-end residential, agricultural and municipal taxpayers at VAB proceedings throughout the State of Florida. Mr. Weiss handles both valuation and legal claims.

Mr. Weiss has over 25 years property tax experience. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 as a Miami-Dade Assistant County Attorney and has since represented taxpayers in property tax matters.

Mr. Weiss appears as one of Florida's Super Lawyers 2006 in the publication of the same name. He was named by his peers as 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

HOW CAN MY PROPERTY BE ASSESSED AT $200,000 IF I RECENTLY PAID ONLY $100,000?

A call from the real estate editor of The Miami Herald recently posed the following question: why was a condo unit being assessed at $192,000 when it was recently purchased for $112,000?

My short answer was: sales price is not always the equivalent of market value.

The long answer involves a discussion of the relationship between purchase price and market value.

The applicable principles are the following:

1. Market value is the amount a willing buyer will pay to a willing seller at arm's-length, both informed as to all the pertinent facts, and neither under duress to make the transaction.

2. Sales price in an arm's-length transaction is presumptively indicative of market value--but this presumption is rebuttable and may be overcome by evidence to the contrary.

3. Sales price may be driven by non-market considerations, such as whim, caprice or other nonrational considerations.

4. Sales price may be arrived at and agreed to well in advance of the closing date and reflect market conditions as of the date of the agreement for purchase and sale, as distinguished from the date of closing.

As it turned out, #4 was the reason for the nearly-100% difference between the purchase price and the tax assessor's estimate of market value in the situation described to me by the newspaper editor.

The sales price was a pre-construction price on a condo unit agreed upon some two years in advance of the closing. This was precisely the hypothetical situation I had described as being a possible rationale for the tax assessment being nearly twice the purchase price in a recent transaction. I had hit the nail on the head.

For the full text of the article in The Miami Herald discussing this situation and containing my comments, click on the link below.

click here

_____________________________________________________________________________
Daniel A. Weiss is a former Attorney Special Master for the Miami-Dade County Value Adjustment Board. Mr. Weiss now represents commercial, institutional charitable, commercial, high-end residential, agricultural and municipal taxpayers at VAB proceedings throughout the State of Florida. Mr. Weiss handles both valuation and legal claims.

Mr. Weiss has over 25 years property tax experience. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 as a Miami-Dade Assistant County Attorney and has since represented taxpayers in property tax matters.

Mr. Weiss appears as one of Florida's Super Lawyers 2006 in the publication of the same name. He was named by his peers as 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

DEATH AND TAXES

"Nothing is inevitable save death and taxes," is an adage attributed
to Benjamin Franklin. (Haven't you always wondered why his face is on the $100 bill? It's so he could help us face the inevitable!)

As applied to property taxes, we concede that liability for some taxes may be inevitable, but the amount is not.

Indeed, even liability may be disputed, if your property is eligible for a charitable, religious or scientific exemption--or if you happen to be a fortunate client of mine whose 2005 tax assessment I just got reduced from $61,755 to $10!



If you own real estate or tangible personal property in the State of Florida, you were mailed by the county Property Appraiser last week or this a 2006 notice of the proposed taxes.

The mailing of this notice begins a 25 day filing period for an administrative tax appeal. So pay close attention to this notice--now! After the filing deadline runs, it won't matter how carefully you review the notice--it'll be too late to do anything about it!

It has been said that taxes are the price we pay for an ordered society. But in the property tax realm, each property is responsible for carrying only its fair share of the burden--no more than that.

Since tax rates--a/k/a millage--are uniform throughout a municipality, county, school district, or other taxing jurisdiction--and therfore incontestable--the way you can reduce your taxes is to contest the assessed value of the real estate or personalty.

In Florida, each of the 67 county Property Appraisers is rsponsible for setting the value of each parcel of property in the county annually. Although each such county property appraiser and his or her employees are presumed to--and for the most part actually do--operate in good faith, appraisal is more art than science, and a good deal of judgment is involved. As one trial judge put it, "Appraisal is neither an art nor a science, but a mystery."

In assessing tens of thousands or hundreds of thousands of parcels annually, mistakes or errors in judgment are bound to creep in from time to time. If an error occurs, the burden is on the taxpayer to point this out to the taxing authorities.

Although the initial process of filing an administrative property tax appeal in Florida is simple, the hearing before the Special Magistrate of the Value Adjustment Board to obtain a reduction in the assessment requires knowledge of legal constraints on the Property Appraiser's assessment and exercise of judgment, familiarity with the real estate market and trends, and experience in preparing and presenting persuasive evidence and argument supporting a tax assessment reduction or exemption.

With 25-plus years of property tax assesment experience, including 14 years representing the Property Appraiser of Miami-Dade County, we understand the process and how to evaluate and seek reduced assessments. Value Adjustment Board Special Magistrates are either experienced appraisers or real estate attorneys who understand the appraisal process and the regulations governing valuation for property tax assessment purposes.

To ensure that you are paying no more than your fair share of taxes, and for a free evaluation of the potential assessment reduction on your property, and applicable exemptions or special classifications, contact me. But don't delay. Remember, the filing deadline is only 25 days after mailing the notice of proposed taxes. In Miami-Dade County, for example, that means on or before September 20!

________________________________
Daniel A. Weiss is a former Attorney Special Master for the Miami-Dade County Value Adjustment Board. Mr. Weiss now represents commercial, institutional charitable, commercial, high-end residential, agricultural and municipal taxpayers at VAB proceedings throughout the State of Florida. Mr. Weiss handles both valuation and legal claims.

Mr. Weiss has over 25 years property tax experience. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 as a Miami-Dade Assistant County Attorney and has since represented taxpayers in property tax matters.

Mr. Weiss appears as one of Florida's Super Lawyers 2006 in the publication of the same name. He was named by his peers as 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