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Politics

Bill seeks to alter appraisal process

Many appraisers don't agree with lawmakers on the measure.

By ALEX LEARY
Published March 14, 2007

When Katrena Hale-Claver bought Sand Glo Villas on Indian Shores six years ago, she envisioned a quaint resort for middle Americans.

Police officers, teachers and retirees came. Some still send Christmas cards. But the mail also brought property tax bills.

After calling the Pinellas County Property Appraiser's Office to complain about a big increase in 2005, Hale-Claver said she was given a suggestion: "Knock it down and build condos."

The appraiser valued her 11-unit resort not on what it was, but on what it could be, a common practice known as "highest and best use." In November, her bill went up about $20,000 and now approaches $60,000.

"If somebody offers to buy me out, I'll go," Hale-Claver, 43, said Tuesday.

Today, the state Legislature will begin to tackle the issue. Bills to be heard in the House and Senate would eliminate the "highest and best" provision in current law and require appraisers to consider a property's current use.

Income-producing property would be valued on how much money it generates. That would save modest operations such as Hale-Claver's thousands of dollars.

While much division remains on other attempts to solve Florida's property tax problems, there is wide consensus among lawmakers on the need to change the way property is appraised.

"It's totally unfair," said Sen. Mike Fasano, R-New Port Richey, who has one of the bills. "It's literally driving people out of business."

Gov. Charlie Crist agrees. An approach that can value a mom-and-pop hotel as a high-rise condominium is "fundamentally flawed," he said Tuesday. "That's not right."

Property appraisers are not convinced. Many oppose the measures, saying the fairest way to value property is the market approach and that highest and best accomplishes the goal, in concert with other factors.

"It's scary. You have people legislating, and they have no clue what they are talking about," said Pinellas County appraiser Jim Smith. "They're certainly not talking with us."

Relying heavily on how much income a property produces creates great opportunity for subjectivity, appraisers say, and it could create new inequities. Some landowners could end up paying more, some a lot less.

"I call it welfare for the wealthies," Palm Beach County appraiser Gary Nikolits said. "It's sort of like Save Our Homes back in 1992. It looks like a good short-term fix, but really has long-term implications."

He cites an example in which a waterfront souvenir shop owner could be sitting on property that would sell for millions but only pay a fraction based on the income.

A staff analysis of one of the House bills says the changes could violate the Florida Constitution, which requires property taxes to be at a uniform rate.

"If two commercial properties are identical except for the fact that one property is owned and used by the business and the second property is leased to the business, the assessed value may not be the same," the analysis reads.

Appraisers agree that there are inequities with the current system as well, pointing to mom-and-pop owners such as Hale-Claver. One fix, they say, could be to create an exemption similar to that for agricultural land.

Hale-Claver said anything the Legislature can do would be great, but she's not waiting. In December, she and seven other motel owners filed a lawsuit against the Pinellas County Property Appraiser's Office.

Times capital bureau chief Steve Bousquet contributed to this report.

[Last modified March 14, 2007, 10:52:47]