“South Florida property tax appeals on a blistering pace” plus 1 more |
| South Florida property tax appeals on a blistering pace Posted: 15 Aug 2010 07:00 AM PDT By Sally Kestin and John Maines Sun Sentinel The annual tax notices going out this month will bring a double whammy of bad news for many Florida property owners — lower values and higher taxes. But a small minority will get a break by challenging the county's value of their homes, businesses and land. Tax appeals have been pouring into government offices throughout Florida, fueled by the real estate boom and crash and a highly profitable cottage industry of tax representatives. So far this year, Broward and Palm Beach counties have reduced property values by more than $2.5 billion as a result of appeals. The process is available to all property owners, but less than 5 percent typically file appeals in South Florida. When they win, it means higher taxes, less government services or both for everyone else. The Sun Sentinel performed an extensive analysis of appeals in Broward and Palm Beach counties since 2006 and found the system favors high-end businesses and residences. Owners of homes and condos assessed at more than $1 million were four to five times more likely to get a reduction than owners of lower-priced homes. The co-founder of Mattress Giant, Richard Nilsen, challenged the county's $14 million value on his newly built Weston mansion in 2008 and got it cut in half. The change saved Nilsen $124,000 in property taxes. On the exclusive island of Palm Beach, the wife of disgraced Ponzi king Bernie Madoff got the value of her waterfront estate pared by 9 percent, saving more than $14,000 in taxes. Using a tax rep or agent generally improves the chances of winning an appeal, the Sun Sentinel found. Hired to get the biggest reductions for their clients, reps often work for the well-to-do and charge up to 50 percent of any tax savings they win. The biggest agents file thousands of appeals every year. "The system was set up to correct errors, but the tax reps have turned this into a money-making operation,'' said Jeffrey Mann, an appraiser for the Broward County property appraiser. "They send out mass mailings, and it's become a big, big, big business.'' The stakes behind tax appeals have never been higher. Cities and counties depend on property tax revenue to pay for police, firefighters and other services. Many local governments are already battling budget deficits caused by plunging property values from the real estate decline. Every time a tax appeal is successful, the gap widens that much more. Record reductions Property values are set by county property appraisers based on sales from the prior year and other factors such as location and size. The county does not inspect each property every year or take into account the interior of buildings. Sometimes, the property appraiser's information about a property is factually wrong. Other disputes arise from differences of opinion. Owners can challenge the assessed value and present evidence that their property is actually worth less. If the property appraiser does not agree to a reduction, hearings are held before special magistrates — licensed real estate appraisers who are paid $90 an hour by county taxpayers. Reduction requests, called petitions, have soared in many counties. Property owners are looking for ways to cut their taxes and see more of an opportunity to challenge assessments now, with business down and home prices at or near rock bottom. Palm Beach County reduced a record $1.3 billion in property value last year. "We had the highest number of petitions in the county that we've ever had in 2009,'' said Property Appraiser Gary Nikolits. Broward is still working through its 2009 appeals and has already knocked more than $1.2 billion off the tax rolls. "It's double what I've seen before,'' said Property Appraiser Lori Parrish. The biggest winners are owners of the highest-priced real estate — large hotels, businesses and mega-homes, where even a slight percentage change in value can translate to large tax savings. A disproportionate share of wealthy property owners use the system and therefore win more reductions, the Sun Sentinel's review of appeals filed since 2006 found. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
| South Florida property tax appeals are on a blistering pace Posted: 14 Aug 2010 08:45 PM PDT The annual tax notices going out this month will bring a double whammy of bad news for many Florida property owners — lower values and higher taxes. But a small minority will get a break by challenging the county's value of their homes, businesses and land. Tax appeals have been pouring into government offices throughout Florida, fueled by the real estate boom and crash and a highly profitable cottage industry of tax representatives. So far this year, Broward and Palm Beach counties have reduced property values by more than $2.5 billion as a result of appeals. The process is available to all property owners, but less than 5 percent typically file appeals in South Florida. When they win, it means higher taxes, less government services or both for everyone else. The Sun Sentinel performed an extensive analysis of appeals in Broward and Palm Beach counties since 2006 and found the system favors high-end businesses and residences. Owners of homes and condos assessed at more than $1 million were four to five times more likely to get a reduction than owners of lower-priced homes. The co-founder of Mattress Giant, Richard Nilsen, challenged the county's $14 million value on his newly built Weston mansion in 2008 and got it cut in half. The change saved Nilsen $124,000 in property taxes. On the exclusive island of Palm Beach, the wife of disgraced Ponzi king Bernie Madoff got the value of her waterfront estate pared by 9 percent, saving more than $14,000 in taxes. Using a tax rep or agent generally improves the chances of winning an appeal, the Sun Sentinel found. Hired to get the biggest reductions for their clients, reps often work for the well-to-do and charge up to 50 percent of any tax savings they win. The biggest agents file thousands of appeals every year. "The system was set up to correct errors, but the tax reps have turned this into a money-making operation,'' said Jeffrey Mann, an appraiser for the Broward County property appraiser. "They send out mass mailings, and it's become a big, big, big business.'' The stakes behind tax appeals have never been higher. Cities and counties depend on property tax revenue to pay for police, firefighters and other services. Many local governments are already battling budget deficits caused by plunging property values from the real estate decline. Every time a tax appeal is successful, the gap widens that much more. Record reductions Property values are set by county property appraisers based on sales from the prior year and other factors such as location and size. The county does not inspect each property every year or take into account the interior of buildings. Sometimes, the property appraiser's information about a property is factually wrong. Other disputes arise from differences of opinion. Owners can challenge the assessed value and present evidence that their property is actually worth less. If the property appraiser does not agree to a reduction, hearings are held before special magistrates — licensed real estate appraisers who are paid $90 an hour by county taxpayers. Reduction requests, called petitions, have soared in many counties. Property owners are looking for ways to cut their taxes and see more of an opportunity to challenge assessments now, with business down and home prices at or near rock bottom. Palm Beach County reduced a record $1.3 billion in property value last year. "We had the highest number of petitions in the county that we've ever had in 2009,'' said Property Appraiser Gary Nikolits. Broward is still working through its 2009 appeals and has already knocked more than $1.2 billion off the tax rolls. "It's double what I've seen before,'' said Property Appraiser Lori Parrish. The biggest winners are owners of the highest-priced real estate — large hotels, businesses and mega-homes, where even a slight percentage change in value can translate to large tax savings. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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