Assessed Value of Real Property in Florida

An enlargeable map of the 67 counties of the s...

An enlargeable map of the 67 counties of the state of Florida (Photo credit: Wikipedia)

In Florida, each county has an elected Property Appraiser that is official charged with the duty and responsibility to appraise all of the property in the County.  This includes real property (real estate) and tangible personal property (the equipment, machinery and fixtures) of businesses. The Property Appraiser prepares the tax roll, but does not collect taxes or determine tax rates.  Thus, the assessed value represents only a portion (or part of the equation) of the overall real estate taxes paid by property owners.

Have you ever wondered why your home is assessed below what you could sell it for?  There could be several reasons (i.e the difference in value definitions as well as the date of value).

1) There is a difference in the value definitions (Market Value versus Just Value or Fair Market Value).  In the State of Florida, real estate is assessed at 100% of the property appraiser’s estimate of “fair market value”.  However, in reality, assessments are typically somewhat lower than actual market values in order to account for the cost of sale and purchase as outlined in the Florida Statutes 193.011 as factors one and eight.  These costs could include sales commissions, reasonable financing costs, etc.

2) The date of value is January 1st of each year for just value.  Whereas, market value could be any date.  Depending on the market that you are in a declining, stable or increasing market, there could be a major difference.  For example, a stable market might not show a remarkable difference.  Whereas, the increasing or decreasing market could significantly show a difference in value.

Market Value is defined by The Appraisal Institute in their basic text; The Appraisal of Real Estate, 13th Ed., p.23 as: “The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.”

The following is a value definition used in determining just value:

193.011 Factors to consider in deriving just valuation.–In arriving at just valuation as required under s. 4, Art. VII of the State Constitution, the property appraiser shall take into consideration the following factors:

(1) The present cash value of the property, which is the amount a willing purchaser would pay a willing seller, exclusive of reasonable fees and costs of purchase, in cash or the immediate equivalent thereof in a transaction at arm’s length;

(2) The highest and best use to which the property can be expected to be put in the immediate future and the present use of the property, taking into consideration the legally permissible use of the property, including any applicable judicial limitation, local or state land use regulation, or historic preservation ordinance, and any zoning changes, concurrency requirements, and permits necessary to achieve the highest and best use, and considering any moratorium imposed by executive order, law, ordinance, regulation, resolution, or proclamation adopted by any governmental body or agency or the

Governor when the moratorium or judicial limitation prohibits or restricts the development or improvement of property as otherwise authorized by applicable law. The applicable governmental body or agency or the Governor shall notify the property appraiser in writing of any executive order, ordinance, regulation, resolution, or proclamation it adopts imposing any such limitation, regulation, or moratorium;

(3) The location of said property;

(4) The quantity or size of said property;

(5) The cost of said property and the present replacement value of any improvements thereon;

(6) The condition of said property;

(7) The income from said property; and

(8) The net proceeds of the sale of the property, as received by the seller, after deduction of all of the usual and reasonable fees and costs of the sale, including the costs and expenses of financing, and allowance for unconventional or atypical terms of financing arrangements. When the net proceeds of the sale of any property are utilized, directly or indirectly, in the determination of just valuation of realty of the sold parcel or any other parcel under the provisions of this section, the property appraiser, for the purposes of such determination, shall exclude any portion of such net proceeds attributable to payments for household furnishings or other items of personal property.

History.–s. 1, ch. 63-250; s. 1, ch. 67-167; ss. 1, 2, ch. 69-55; s. 13, ch. 69-216; s. 8, ch. 70-243; s. 20, ch. 74-234; s. 1, ch. 77-102; s. 1, ch. 77-363; s. 6, ch. 79-334; s. 1, ch. 88-101; s. 1, ch. 93-132; s. 1, ch. 97-117; s. 1, ch. 2008-197.

1Note.–Section 7, ch. 2008-197, provides that “[i]t is the express intent of the Legislature that a taxpayer shall never have the burden of proving that the property appraiser’s assessment is not supported by any reasonable hypothesis of a legal assessment. It is the further intent of the Legislature that any cases of law published since 1997 applying the every-reasonable-hypothesis burden of proof to uphold the property appraiser’s assessment are expressly rejected to the extent that they are interpretive of legislative intent.”

If you are interested in buying a new home or an existing home, please contact me (Alan Lane with Keller Williams Realty at 2119 W Brandon Blvd, Brandon, Florida  33511) and I can help you find your dream home in the Tampa Bay Area.  My email address is alanlane66@gmail.com or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for homes on my website at this link.

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