At this time each year, county property appraisers issue each property owner a Notice of Proposed Property Taxes (commonly referred to as a "TRIM" notice). Property owners who believe their property's value has been assessed too high face the question: Should I challenge the assessment? The short answer is generally yes.
Tax assessment challenges are heard by a county's Value Adjustment Board ("VAB"). Each VAB comprises five members: two from the county board of commissioners, two citizens, and one from the county's school board. Most counties use a special magistrate to conduct the hearings who, in larger counties, is generally a licensed appraiser. The magistrate makes a recommendation to the VAB, which generally adopts the recommendation as its ruling. In the event the property owner is not satisfied with the decision from the VAB, it may appeal the VAB decision to the circuit court.
Filing a petition with the VAB or scheduling an informal conference with the property appraiser to discuss a resolution of a tax assessment dispute may provide multiple benefits at a reasonable cost.
- The VAB process is relatively inexpensive. The filing fee is nominal, the effort to complete the petition is not burdensome, and property owners may represent themselves before the VAB. But be aware that the testimony at the VAB hearing is recorded, witnesses are subject to cross examination, and the recorded testimony may be used against the owner if it brings a lawsuit challenging the VAB decision. It may be prudent to hire a lawyer.
- Discovery burdens are low. There is no full-blown discovery as in a lawsuit, which helps to keep down the cost. Moreover, the property appraiser must make available all its documents upon request while the property owner need only disclose those documents it intends to use as evidence at the VAB hearing. Property appraisers may obtain a subpoena for the production of the owner's records, but rarely do so, meaning that the owner may not have to make available documents adverse to its position.
- An assessment reduction might help limit future assessments. If the assessment challenge is successful, the next year's assessment will start at a lower baseline. Florida has a 10% cap on increases in assessed value for commercial property, excluding School Board assessments. Any future assessment increases will be limited by the cap, resulting in reduced taxes for future years as well.
- Litigation can be pursued later. There is no risk, as the property owner preserves its right to bring a legal action in circuit court to challenge the tax assessment if the owner disagrees with the VAB's determination. The circuit court will try the assessment challenge afresh, without giving any deference to the VAB decision.
Although relatively inexpensive and uncomplicated, an assessment challenge must follow certain procedural rules. A property owner has 25 days from the date the TRIM notices are mailed to file a petition with the VAB. At the same time, the owner may request an informal conference with the property appraiser. If the conference is unsuccessful, the owner may then proceed with its timely-filed challenge.
Property owners who believe they have meritorious grounds for a tax assessment challenge should consider the advantages of asserting such a challenge before the VAB. Stearns Weaver Miller can assist clients in reviewing their TRIM notices and in property tax challenges before the VAB and in circuit court. For more information, contact our team.
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