My Tax Appeal Blog

For those US Taxpayers that own homes with assessments capped under the "save our homes" act (Amendment 10), the assessment is typically much lower than the market value if the home was purchased many years ago. 

However, the assessment of a homestead property under "save our homes" increases by 3% or the Consumer Price Index as published by the Bureau of Labor Statistics, whichever is less.  As values increased in South Florida, this provided a substantial savings for property owners.  In a declining market, the property appraiser's office will continue to apply the 3% or CPI formula for assessed values.

For a homestead property with a "market value" higher than the "assessed value", the assessed value will still increase 3% although the market value has decreased.  This is the "recapture rule."

If you need a tax expert, contact Britt J. Rosen, CCIM, for advice at (305) 663-7334 x 107.

Miami, FL - Britt J. Rosen, CCIM, successfully obtained a reductions in the real estate taxes in both 2007 and 2008 for this corner property locaated at 2830-34 NW 5th Avenue in Wynwood, in Miami-Dade County, Florida.

The property was assessed for approximately $1,119,000 in 2008. Britt presented an income & expense analysis along with comparable sales. 

The Miami-Dade VAB Magistrate reduced the assessment by approximately 30% of the 2008 assessed value.  Similar results were obtained in 2007.

View looking north at subject.  N.W. 5th Avenue is located on the right. This area is known as the "garment district."

Miami-Dade County's Value Adjustment Board began hearing tax cases in December.   Since there is a reported 70,000 appeals that were filed in August and September 2008, the hearings will be scheduled well into 2009.  A solution to lowering the cost of owning a home or condominium is the appeal of real property taxes.

South Florida needs tax reductions, as the values of properties have been substantially lower than at the height of the real estate market in 2005-2006. Since the date of value for tax appeals is January 1st of the current tax year, the comparables used are from the prior year. For instance, in asking for a reduction in 2008, one must present data from 2007 in making the argument.

Therefore, in 2008 and 2009, “tax agents” have the use of many comparable sales that are generally lower than in years past, and tax agents will have the use of this data in their appeals.  Appraiser Pedro Garcia acknowledged this in the public forums leading up the vote for the Miami-Dade Property Appraiser. Mr. Garcia is a long time Realtor and real estate appraiser with 32 years of experience, and he is an appointed magistrate on the Miami-Dade County Value Adjustment Board (VAB).

A $10,000 tax bill adds $833.33 per month to a mortgage.  As the lender typically escrows the taxes and adds it to the overall monthly mortgage payment.  This reduces the purchase price a buyer would be willing to pay for a home or condominium. If one reduces their tax bill, it would help homeowners keep their houses and lower taxes allow prospective purchasers to acquire homes that are more expensive. High property taxes not only discourage development, but they also discourage new developments.