The Killer Real Estate Tax Pill

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Property taxes provide the bulk of local government revenues in Florida. They account for a large portion of the revenue needed to provide fire protection, education, law enforcement and other services. Unfortunately, this tax system does not make sense in times of economic difficulty and the rapid erosion of real estate values.

While the owners of Florida real estate are looking to lower their property tax burdens, cut monthly expenses and increase cash flow, the state and local governments are facing huge budget deficits and are resistant to simultaneously significantly lower tax assessments. Of course, this could not be happening fast enough for all of us.

Why should an investor who is willing to risk a sizable amount of cash in a bank owned condo in Miami, for example, have to pay taxes based on unjustified taxable values? It is time to change our outdated and unrealistic Florida laws and statutes that govern property tax assessments.

In the event that you are wondering what rights you have to dispute your tax bill, you need to know the basic facts and steps involved in this process:

The Basics – Property taxes are levied on an annual basis. Taxes are paid in arrears, at the end of each tax year, for the period January 1 through December 31. Property taxes become a lien on all real estate in Florida on January 1st each year. Taxes are payable to the county tax collector on or after November 1st each year. You may make your payments in four installments or in one lump sum. Property taxes for the previous year become delinquent on April 1st.

Protesting Your Property Assessment – You are entitled to protest your property assessment and Florida has a three-step process:

• Step One. You have only 25 days to protest your assessment from the date that it is mailed. If your arguments are valid, the county property appraiser is authorized to make a change. If your request is rejected, move on to step two.
• Step Two. File an appeal with the Value Adjustment Board. This five member board is made up of five members, three county commissioners and two county school board members. If you are denied again, call your lawyer and proceed to step three.
• Step Three. The final step available to you is litigation in the courts.You may pay the taxes under “protest” and file a suit against the county property appraiser and county tax collector.

Nonpayment of Real Property Taxes - Property taxes constitute a lien superior to all other liens on real property. Special assessments are next in order of priority. Unlike other liens and debts, property taxes and special assessments become liens as soon as the assessment is complete. Unpaid property taxes are considered a debt and the property is considered security for the debt and may eventually be sold to repay the obligation.

Property Tax Certificates - A property tax certificate in the amount of taxes owed is issued to repay for each delinquent property. The holder of a property tax certificate may force a public auction of the property after TWO years by requesting a tax deed.

If you need any additional information, or would like to discuss a specific real estate issue, please contact us at info@miamiangelproperties.com.

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