Is a property tax reduction possible if my assessment is less than my purchase price?
Emphatically, yes!
Sales price of a specific property is not necessarily the same as thing market value. This is true even though sales price is prima facie evidence of market value.
Sometimes market price is driven not solely by market factors. Market price can, and often does, result from caprice, carelessness, desperation, egotism, ignorance, pressure, sentiment, social ambition, whim or many other factors.
And sometimes market price is simply arrived at based on assumptions which later prove erroneous.
A few examples from the 2004 tax rolls of Florida's Broward and Miami-Dade counties will illustrate the point.
PROPERTY SALES PRICE ASSESSMENT REDUCTION SAVINGS
2537 Sanctuary Dr.
Weston $1,695,000 $1,484,180 $253,180 $5,180
601 N.W 110 Ave.
Plantation $430,000 $415,350 $41,250 $960
3675 Flamingo Dr.
Miami Beach $1,980,000 $1,840,525 $290,525 $7,190.
Notably, for each of the above three residences, the tax savings will be repeated annually as a result of the "Save our Homes" provision of the Florida Constitution!
The same principles recounted above apply to commercial real estate. For example, on a group of seven commercial parcels purchased between 2001 and 2002 for a total of $1,615,000, we achieved the following results.
The 2004 assessments were reduced from $1,457,707 to $1,141,528, a reduction of $316,179, garnering tax savings of $8,296. The same parcels were reduced in 2003 from $1,233,729 to $875,180 and in 2002 from $1,114,783 to $519,886. Tax savings were $9,265 and $16,841, respectively!
If you found this topic interesting, stay tuned for our next blog entry, where we answer the question, "Is a property eligible for tax reduction even if it is under contract--or has already sold--for more than its assessed value?"
Daniel A. Weiss has over 24 years property tax experience. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 as a Miami-Dade Assistant County Attorney and has since represented taxpayers in property tax matters.
In Florida Trend magazine’s “Legal Elite” issue, July 2004, Mr. Weiss was selected by his peers as one of the top 30 government lawyers in the State of Florida.
For more information click here
For a free consultation regarding your property, contact us at http://www.tannebaumweiss.com/property_tax.php.
Sales price of a specific property is not necessarily the same as thing market value. This is true even though sales price is prima facie evidence of market value.
Sometimes market price is driven not solely by market factors. Market price can, and often does, result from caprice, carelessness, desperation, egotism, ignorance, pressure, sentiment, social ambition, whim or many other factors.
And sometimes market price is simply arrived at based on assumptions which later prove erroneous.
A few examples from the 2004 tax rolls of Florida's Broward and Miami-Dade counties will illustrate the point.
PROPERTY SALES PRICE ASSESSMENT REDUCTION SAVINGS
2537 Sanctuary Dr.
Weston $1,695,000 $1,484,180 $253,180 $5,180
601 N.W 110 Ave.
Plantation $430,000 $415,350 $41,250 $960
3675 Flamingo Dr.
Miami Beach $1,980,000 $1,840,525 $290,525 $7,190.
Notably, for each of the above three residences, the tax savings will be repeated annually as a result of the "Save our Homes" provision of the Florida Constitution!
The same principles recounted above apply to commercial real estate. For example, on a group of seven commercial parcels purchased between 2001 and 2002 for a total of $1,615,000, we achieved the following results.
The 2004 assessments were reduced from $1,457,707 to $1,141,528, a reduction of $316,179, garnering tax savings of $8,296. The same parcels were reduced in 2003 from $1,233,729 to $875,180 and in 2002 from $1,114,783 to $519,886. Tax savings were $9,265 and $16,841, respectively!
If you found this topic interesting, stay tuned for our next blog entry, where we answer the question, "Is a property eligible for tax reduction even if it is under contract--or has already sold--for more than its assessed value?"
Daniel A. Weiss has over 24 years property tax experience. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 as a Miami-Dade Assistant County Attorney and has since represented taxpayers in property tax matters.
In Florida Trend magazine’s “Legal Elite” issue, July 2004, Mr. Weiss was selected by his peers as one of the top 30 government lawyers in the State of Florida.
For more information click here
For a free consultation regarding your property, contact us at http://www.tannebaumweiss.com/property_tax.php.
posted by Daniel A. Weiss at
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