Michael D. Goff

Pat,

Ad Valorem property taxes are based on "Just Value", which is synonymous with Market Value.

The formula, simply put, is "Just or Market Value" of the unit multiplied by the millage rate equals Ad Valorem (according to value) Tax. On top of that, can be added flat fee taxes such road paving, garbage fees, etc. It really depends on the location of the taxing district for additional flat taxes and millage rates.

Also, Save our homes caps for homesteaded properties will create different taxable values than those condominium units without homestead exemptions and caps.

You should look at the "Just Value" of the unit, as arguing value is the only way generally to reduce the tax burden, which can be done at a Value Adjustment Board. Condominium units are based on the comparable sales or direct sales comparison approach. Amenities, maintenance fees, location and quality are major variables in just value estimates. The County Property Appraiser will estimate value of each unit as of January 1 of each year. This estimate of value will be generally based on the previous year of sales, and in a declining market, lag behind current sales and values, resulting in over assessments and an unfair tax burden. Due to this inherent time lag in the system, the Florida legislature this year removed the "presumption of correctness" from the County Property Appraiser at the Value Adjustment Board, making it a level field when contesting the estimated market or just value. It behooves the taxpayer to get an unbiased, third party opinion of value or appraisal by a qualified appraiser, especially if it is a high value unit. The difference in value estimates can more than pay for the appraisal, and in the case of homesteaded properties, reduce the the burden of taxes for more than one year due to the Save our homes caps.

Reference is made to our website listed below for a more definitive explanation, as well as ordering an appraisal and contracting for representation at the Value Adjustment Board. There is a whole section (page) on property tax assessment and the appeal process. You can also contact us for a more specific answer based on the actual unit or units in question.

Mike Goff, Harborside Appraisal - Wed Aug 12 2009, 12:37