Upward-spiraling real estate taxes in South Florida are affecting homeowners’ pocketbooks and the area’s economy. As real estate taxes increase and the state grapples with unequal treatment of homesteaded real estate, non-homesteaded real estate, and commercial real estate, solving—or at least mitigating—these tax problems is high on the priority list of the Florida Legislature and county and local governments. This situation has resulted in counties’ Value Adjustment Boards (VABs) becoming institutions of critical importance.

What is a VAB? Until recent years, the VAB was virtually unknown, as real estate taxes were generally moderate and appeals of real estate valuations were uncommon. However, in the current climate, where real estate taxes have often increased dramatically over the last few years, petitions to the VAB have soared.

Each August, property owners are notified by property appraisers of their current year’s assessed and market values in “truth in millage” (TRIM) notices that also show the prior and current years’ taxes, with and without budget changes. The VAB offers property owners the opportunity to contest assessed valuations of real or tangible property or appeal classifications, and, in the case of disputes, the VAB serves as the decision-maker.

The VAB’s procedural rules are strict. For example, petitions must be filed by property owners within 25 days of the August mailing of the TRIM notice, which means that petitions usually must be filed by mid-September. As it happens, that is a time when many Florida residents are on vacation or otherwise not in the state. In the past, many property owners who wanted to file a petition were not able to do so because they were outside of Florida and unaware of the deadline.

Once a petition has been filed, the VAB clerk schedules a hearing before a special magistrate appointed by the VAB. The property owner is responsible for gathering all evidence necessary to overcome the statutory presumption of correctness of the property appraiser’s determination, and evidence to support the property owner’s assessed market value, tax exemption classification, or deferral. The evidence, which can be quite extensive depending on the situation, must also be submitted within a certain timeframe. The process provides for a pre-hearing exchange of evidence between the property owner and the property appraiser’s office. If the matter is not settled at that point, a hearing will be held before an appointed special magistrate. If property owners are not successful at the hearing, they may bring an action in Circuit Court to contest the adverse decision; this action must be filed within 60 days of the final VAB decision.

It is important to note that properties are assessed as of January 1 of each taxable year. Changes that occur after January 1 and appraisals and valuation dates after January 1 may be admissible into evidence at special magistrate hearings. Such evidence, however, is only relevant to the extent it is probative of the market value as of January 1 of the taxable year.

It is also important to note that under Florida law “just value” equals market value and that, under Florida statutes, there are multiple factors that must be considered in the determination of just or market value. While VABs have been relatively unknown aspects of county government, their roles and visibility are likely to continue to increase as Florida grapples with increasing ad valorem real estate taxes.

Mr. Sliney has practiced law in South Florida since 1971 and has extensive experience in the representation of a wide variety of individuals and corporations. Mr. Sliney’s practice is currently focused on wills, trusts and estates. He also has extensive governmental, municipal and zoning experience. He has served as Town Attorney for the Town of Highland Beach since 1973 and also serves as the attorney for the City of Boca Raton Civil Service Board. He is admitted to practice in Florida (1971). Contact Mr. Sliney at tsliney@hodgsonruss.com.