As the old saying goes, there are two certainties in life: death and taxes. For commercial real estate owners and developers, the latter is an inevitability that may be mitigated. Each August, Florida property tax appraisers send out TRIM notices, or Notice of Proposed Property Taxes, advising all taxpayers of the proposed assessment on their properties. These TRIM notices are critically important for a number of reasons: foremost being that the mailing of the notices opens a very short window in which a tax appeal may be filed.
The assessed value of a piece of real estate roughly approximates what the county property appraiser considers market value. Often this assessment is higher than what the local market may support, or the property may have been affected by a diminution of value through declining market conditions or other factors.
Florida law provides a taxpayer the option of appealing the assessment in an administrative appeal before the Value Adjustment Board (VAB). The appeal is started by filing a Petition with the Clerk of the VAB. As mentioned above, reading the TRIM notice is critical because the petition must be filed no later than the twenty-fifth day after the mailing of the TRIM notice (not the receipt).
Alternatively, a taxpayer may file a circuit court action to challenge the assessment. Circuit court appeals are more costly, but if the case involves a complex legal or evidentiary issue, the twenty-five day appeal period is generally not feasible. Further, value disputes before the VAB are generally heard by the very individuals who assessed the property in the first place. Perhaps most importantly, in a court action, an attorney may subpoena witnesses to testify on the taxpayer’s behalf and may depose adverse witnesses before trial. As a result, testimony and evidence that may be unobtainable in a VAB hearing may often be compelled in a circuit court appeal.
A circuit court action, however, is not without its time constraints. Florida statutes provide that filing in circuit court is proper within sixty days from the date that the assessment being contested is certified for collection, or sixty days from the date that a decision is rendered by the VAB. Importantly, the taxpayer must pay the assessment, even when such assessment is contested. If the court determines that the taxpayer was not liable for the tax, the reduced portion of the assessment will be refunded to the taxpayer.
If you feel that your assessment is improper, it is critical that you speak with a real estate attorney as soon as you receive the TRIM notice.