Politics

Officials: Tax plan favors the rich

A state property appraisers group says the plan targets something that doesn't need fixing. It says that there's nothing to fix and that it affects only the rich.

By DAVID DeCAMP, Times Staff Writer
Published October 16, 2007

If lawmakers have their way, the rich will have an easier path to lowering their tax bills, Florida property appraisers say.

"Who gets the benefit? The wealthiest," said Will Shepherd, general counsel for the Hillsborough County Property Appraiser's Office.

What's more, appraisers say, there is no problem that needs fixing.

In a letter Monday to Gov. Charlie Crist and the Legislature, the Property Appraisers' Association of Florida noted that the state's assessment process has been the subject of three studies in the last decade. None, the appraisers said, supported the change the Legislature says will "level the playing field" between appraisers and property owners.

"Contrary to the proponents' assertions that the change ... is necessary to level the playing field, the proposal clearly indicates the intent to provide a substantial advantage to large taxpayers challenging their assessments," the letter said.

During this week's special session, legislators are considering whether to remove a long-held presumption that county property appraisers are correct when they decide property values in some cases. Absent clear evidence of inaccuracy, the presumption means that an assessment sticks in a challenge.

But lawmakers would change the standard for owners of second homes, businesses and other nonhomestead properties. If they show their assessment is higher than the county average for their kind of property, the appraiser loses the presumption of correctness.

That means that an owner of property in New Tampa could have a better chance at lower tax bills, thanks to lower values in the MacDill area, Shepherd said.

The appraisers' association made the same point. Using averages, it said, has nothing to do with figuring the actual market value of a specific piece of property.

The change does not affect homestead property, because owners of these are already protected by the Save Our Homes cap on assessment increases.

If this is a complex issue, it's also an expensive one. The Florida House estimates it would cost local governments $87-million in 2009 and quadruple to $369-million in 2012.

The appraisers' association put the hit even worse, up to nearly $6.4-billion combined over the next five years.

The reason? Some property appraisers fear a spike in appeals.

In Orange County, Property Appraiser Bill Donegan has estimated he will need 13 more employees to investigate challenges. This year, before the proposed change, appeals of assessed values on nonhomestead property there rose in 2007 from 233 to 797, Donegan said.

On the other side, supporters say it makes the tax process more fair. A presentation by Republican lawmakers last week highlighted how it shifts the burden "in favor of taxpayers."

"The proposed change as I see it merely creates a more level playing field for taxpayers," said Stanley Beck, founder of Property Tax Consultants Ltd., one of South Florida's top firms representing taxpayer appeals. "But there should be no presumption to protect the property appraiser from having to show how they created the assessment."

Ben Phipps, a property tax lawyer who is lobbying for the firms that represent taxpayers in their appeals and several major corporations, also said a change in the law will not result in more petitions or fly-by-night tax reps filing them.

Pinellas County Property Appraiser Jim Smith and Pasco County Property Appraiser Mike Wells both downplayed the ill effects. Whatever the presumption, they have to be able to show their appraisals are accurate. They said their goal isn't to keep people's taxes high but keep assessments accurate.

And given the mass number of appraisals their agencies do, they said they're bound to be off somewhere. They frequently reduce assessments, but do so in informal meetings that do not lead to formal appeals. The proposed bill would not affect that process.

"My feeling is, if you deserve a lower assessment, you should get it," Smith said.

Times staff writer Sydney Freedberg contributed to this report. David DeCamp can be reached at ddecamp@sptimes.com or (800) 333-7505, ext. 6232

Fast facts

Appraisal issues

The Property Appraisers' Association of Florida's stance on the proposal:

- Proponents mistakenly assert that elimination of the presumption of correctness is necessary to "level the playing field" for taxpayers.

- No evidence, study, or analysis exists to support a need to change the burden of proof.

- The proposal eliminates the presumption of correctness based upon a condition - a change in assessment greater than the average change in assessments for that category of property - that is legally and factually irrelevant to the property appraiser's duty to annually assess all property at just value.

- The proposal will cause significant fiscal negative impact on local government and school boards in future years.

[Last modified October 15, 2007, 23:33:11]