Politics

Panhandle tax fight heats up

A property appraiser complains about being audited.

By ALEX LEARY, Times Staff Writer
Published September 18, 2007

TALLAHASSEE - An unusual fight between a Panhandle property appraiser and the state Department of Revenue intensified Monday with the county official complaining about a "retaliatory" audit.

Flanked by two state lawmakers, Santa Rosa County property appraiser Greg Brown came to Tallahassee to challenge the need for the in-depth review and complained afterward that the agency was singling him out.

Brown contends that incentives used to sell homes in a sluggish, saturated market have artificially increased property values at a time when taxes are supposed to be going down.

Examples of incentives include pools, free cars, plane tickets and "decorator allowances" for draperies and fixtures.

When Brown submitted his tax roll, which is used to set the millage rate, he subtracted the value of those deals. The DOR, in rejecting his reasoning, could increase taxes for some homeowners, Brown asserts.

The problem is the value of the incentives is added to the sales price recorded in county records. And because the government calculates property taxes based on those county records, the incentives can have a notable impact.

Sellers across the state have used incentives, but the DOR says no other county has reported them to the degree of Santa Rosa and neighboring Escambia County. Escambia has not been told it will be audited.

The unusual market conditions warrant a deeper study, said James McAdams, a property tax official with DOR. "That's something we have a legitimate and professional interest in understanding," he said.

In a statement, state Sen. Durell Peaden and Rep. Greg Evers, both from the Panhandle, questioned why DOR was "singling out" Santa Rosa County and why the state would spend "approximately $400,000" for an audit.

McAdams said a review would cost $100,000 and that each county gets an in-depth audit every other year. This is the second in a row, however, for Santa Rosa.

[Last modified September 17, 2007, 22:10:01]