The Declining Real Estate Market Creates Opportunity to Appeal Tax Assessment
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Community Leaders Can Challenge Property Tax Assessments With Board Resolution.
Hasn't the real estate market changed in the last few years? Owners and Board Members long for the days of escalating prices when everyone paid maintenance fees and even if they didn't, there was plenty of equity in the property to satisfy delinquencies after or in connection with a foreclosure.
That has all changed. Revenue is down and so are property values. Shouldn't you pay less? Of course you should and probably do - property appraisers have been adjusting values, but are the new numbers realistic? Both the multi-family and single family home values fell dramatically - now is the time to establish a lower base assessment for yourselves and your owners.
How? Pursuant to Section 194.011(3), Florida Statutes, condominium, cooperative and homeowners associations can file a joint petition. The relevant portion of the statute says:
A condominium association, cooperative association, or any homeowners' association as defined in s. 723.075, with approval of its board of administration or directors, may file with the value adjustment board a single joint petition on behalf of any association members who own parcels of property which the property appraiser determines are substantially similar with respect to location, proximity to amenities, number of rooms, living area, and condition. The condominium association, cooperative association, or homeowners' association as defined in s. 723.075 shall provide the unit owners with notice of its intent to petition the value adjustment board and shall provide at least 20 days for a unit owner to elect, in writing, that his or her unit not be included in the petition.
Thus, once the Board of Directors passes a resolution it may file the tax appeal petition with the Value Adjustment Board. The Value Adjustment Board will appoint a Special Magistrate to conduct a hearing to determine whether the market value of the property set forth on the TRIM notice was higher than the actual market value on January 1 of this year.
The collective power of the association is useful in the appeals process. First, the per property fee for filing is less. The fee may be paid by the Association, in fact §718.111(3), Florida Statutes and §720.303(1), Florida Statutes specifically authorizes the association to protest ad valorem taxes for the common facilities. The common elements and facilities are nominally valued for tax purposes, since the actual value is included in the value of the homes/units.
Factors to Consider in a Protest:
- Part of the property may qualify for an exemption
- Foreclosure & delinquency rates
- Structural or storm damage / construction work limiting use of the property
- Changes in the surrounding area i.e. blocked views from new construction
- Increased property insurance costs
- Changes in use - chinese drywall & other limitations on use
Each unit or home owner is given the opportunity to opt-out of the appeal if they want to pursue an appeal on their own or just don't want to participate.
Use professionals to assist in the tax appeal process. A professional should know how to craft the appeal, can determine whether any exemptions apply and understands the process - all to present your case in the most favorable light.
