Listen to the podcast interview on the Invest Florida – Real Estate show – Dec 27, 2014.. Hosts, Steven Silverman and Eric Odum talk to Todd Jones, who is the the President of the Florida Association of Property Tax Professionals. Todd specializes in property taxes he has assisted clients in all phases of the assessment appeal process, pre- acquisition, due diligence
Property taxes are necessary evil, they fund local government and so there’s always a public/private sector tension between the two. Property taxes funding schools, fire station, policemen and just local government activity. Both property owners and operators understand the property taxes typically they largest above line expense they have. I a 5% cap rate world every dollar we save above the line translate the $20 increment in that asset value
It is important to understand how tax assessors arrive at the assessed value of the property. Assessors are allowed to use a mass appraisal technique . In most jurisdictions – tax assessors are using what equates to a “regression matrix” that’s a statistical model where we put in a several variables: which could be ..Number of bedrooms, number of bathrooms, square footage, lots size, age, quality, condition. Because of this methodology you can challenge the value that the Assessor assigns to a property if you can successfully present a case as to why that specific property is being taxed at an excessive rate
The 4 corners of property tax as a industry are:
- Valuations element
- Legal element
- Accounting element
- Political element
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