Like many we received our notice of proposed property taxes this week and noticed a few interesting / alarming figures. From 2007 to 2008 the assessed value of our home increased by the mandated 3% as per Section 193.155 of the Florida Statutes. In a declining market the increase of 3% under this statue is know as the Recapture Rule and the 3% annual increase will continue until the assessed value and market value are the same.
Interestingly the market value indicated by the Property Appraisers office also shows an increased of….get this…..more than $51,000 from 2007 to 2008. Now it doesn’t take a rocket scientist to tell you that the actual market value of my home did not increase by $51,000 over the past year and in all likelihood actually decreased. The indicated market value is actually immaterial in light of the fact that we have homestead exemption and our taxes are calculated on the assessed value which is capped at an increase of 3% or the CPI index which ever is lower (as per the previously mentioned statute).
But what if we were to sell our home? Would the new owner pay a disproportionately high tax rate because of the inflated market value? Will the actuaries at the insurance carriers adjust premiums based on artificially inflated values county wide? This Pandora’s Box will cause many a home owner to lose sleep in the coming months.
You can see how an inaccurate indication of market value by the Property appraiser’s office can lead to a variety of inequities. Therefore, it is imperative that every home owner is aware that the appraisers office will not and is not required to pro-actively reduce the indicated market or assessed vale of your home just because we are in a declining market. It is up to the individual homeowner to challenge the indication of market or assessed value if it is artificially inflated.
If you would like more information on how to appeal your property taxes please send me an email at [email protected].