To challenge or not to challenge? If there is a difference between the market value and the assessment value of your home, you need to decide whether or not you want to challenge your taxes. If the difference is only a few thousand dollars, it may not be worth the hassle. However, if the difference is large, it is almost always worth the effort of challenging your taxes. You should be able to determine how much the difference in your tax bill would be by contacting the county auditor’s office.

Keep in mind that sometimes your house may be assessed at less than market value. There may be reasons for this – you may live in a county that does this purposely to give all tax payers a break, or your taxes may not have been adjusted recently. If it is the latter, be prepared for a tax hike the next time taxes are reassessed!

Challenge your taxes. If you decide to proceed, contact your county auditor’s office for instructions. Some counties will do a reassessment based on a telephone or e-mail request, but others require a formal appeal. This usually involves filling out a special form, and sometimes appealing before a board. These actions should increase your chances of a successful property tax challenge:

• Research and gather information. Determine the market value for your house and the tax assessment value. You should also gather information on your neighbors’ houses to determine if you are paying a similar level.
• Be organized. Now that you have your data, organize it. Many counties limit you to one challenge per tax cycle (unless there are major changes to your property), so take the time to do this correctly.
• Present your case. Highlight any errors in the country records, discrepancies between the market value and assessed value, or the value of your house and your neighbors’ houses.
• Be nice. You are appealing your taxes to people who have the power to grant your request for lower taxes, or stick you with higher taxes for the duration of the assessment cycle, which may last a few more years. Remember, the county auditors and tax assessors are probably dealing with many people in a similar situation to yours. Being nice will not only leave a favorable impression with them, it is the right thing to do.

These steps will not guarantee you success when challenging your property tax assessment, but following them will increase your chances of getting your request approved. Good luck, and I hope you win your challenge!

The Pinellas County Property Appraiser's Office is dedicated to providing a top-notch product to the citizens of Pinellas County. To that end, we want to hear what you think about our web site. If, while visiting our site, you have a question, comment, or idea about the site or the material presented, please feel free to contact us, or call us at (727) 464-4290.

In order to submit a question regarding your property's appraisal, you may contact the Pinellas County Property Appraiser's Information Counter at (727) 464-3207, or you may contact us by e-mail. Your question will be forwarded to the appropriate area appraiser. If you would like a response to your question, you must list your name, address, and phone number, and you will be contacted by the area appraiser. To submit your question, fill out the form below and click on SUBMIT.

Florida law sets January 1 as the assessment date each year for determining both value and exemption eligibility. While January 1, 2009 is the date used for setting your assessed value for the August 2009 TRIM Notice and November 2009 tax bill, the value is based upon the market value for similar properties in the same or comparable subdivisions during January 2, 2008 - January 1, 2009. If market values dropped during 2008, resulting in lower sales prices, this will be reflected on your 2009 tax bill. Likewise, in a year when values increase, those increases will not be reflected until the tax bill the following year.

How is land valued?

Land is valued based on the market or comparative sales approach. The location of the land is a major factor in determining its value. For example, land located near the water is generally more valuable than land located inland. Sale properties are analyzed and compared. Units of comparison such as square feet, acreage and front foot are used to develop land value from the sale properties. These land values are then applied to non-sale properties based on their comparability.

Why are my taxes increasing when the assessment on my home is going down?

There are a couple of reasons this may happen. It may be because your millage rate (tax rate), determined by your local taxing authorities, is increasing. Another reason may be what's known as the "Recapture Rule". In September 1995, Florida's Governor and Cabinet approved a rule directing property appraisers to raise the assessed value of a qualifying homestead property by the maximum of 3% or the annual change in the Consumer Price Index, whichever is less, on all properties assessed at less than full market value whether or not that property's value increased during that calendar year. (Click here to view the rule.) If you have the Save Our Homes cap on your property and your just/market value decreases, your assessed value will still increase by the annual cap rate until it reaches the just/market value.

The setting of taxes is a local government function. Property tax is primarily for local government revenue. The property tax makes up about 25% of the average county budget and over 30% of the average city budget. The Property Appraiser is independent of city or county governments and plays no part in their tax policies. This office is not involved with, and has no legal responsibility for, local government budgets, tax rates or tax bills.

There are over 54 different taxing authorities in Pinellas County which affect various tax districts. They include the county commission, municipalities, school board, transit, water management, and fire districts. These different entities all have public hearings on budget requests for the forthcoming year. Proposed millage rates necessary to fund the budget are set at one of the budget hearings. The revenues generated are applied toward schools, fire and police protection, among other services.

Millage rates are expressed as dollars per $1,000 of taxable value. They are the budgeted dollars of a taxing authority divided by the total taxable value of all property in that taxing district.

Below is a quick primer on how property taxes are determined:

Let's say that on January 1 of a given year (status of property on that date determines value) the Property Appraiser has found the market value of your home to be $175,000. (Market value is the probable sales price less approximate allowable costs of sale.)

You apply for and receive a full Homestead Exemption, so $50,000* is deducted from your assessed value, leaving a taxable value of $125,000.

Now, let's assume that the millage rate in your community has been set by the taxing authorities (city commission, county commission, school board, etc.) at 20 mills. That's $20 per $1,000 of taxable value. This is the tax rate.

Divide the taxable value of your property by $1,000

($125,000 / $1,000). The result is 125. Multiply this factor by the tax rate ($20), 125 x $20 = $2500

This $2500, plus the school millage on the additional $25,000 exemption*, is the tax on your home (less discounts for early payment) required by taxing authorities to fund their budgets.

*On January 29, 2008, Florida voters approved an additional $25,000 homestead exemption to be applied to the value between $50,000 and $75,000. If a home is valued at $75,000 or more, the owner would receive the full exemption benefit. If the home is valued at between $50,000 and $75,000, he or she would receive a pro-rated exemption amount. This exemption does not apply to school taxes. No additional application is required.

SAVE OUR HOMES “RECAPTURE” PROVISION

FLORIDA STATUTES:

Section 193.155 - Homestead assessments.--

Homestead property shall be assessed at just value as of January 1, 1994. Property receiving

the homestead exemption after January 1, 1994, shall be assessed at just value as of January

1 of the year in which the property receives the exemption.

(1) Beginning in 1995, or the year following the year the property receives homestead

exemption, whichever is later, the property shall be reassessed annually on January 1.

Any change resulting from such reassessment shall not exceed the lower of the following:

(a) Three percent of the assessed value of the property for the prior year; or

(b) The percentage change in the Consumer Price Index for All Urban Consumers, U.S.

City Average, all items 1967=100, or successor reports for the preceding calendar year

as initially reported by the United States Department of Labor, Bureau of Labor

Statistics.

(2) If the assessed value of the property as calculated under subsection (1) exceeds the just

value, the assessed value of the property shall be lowered to the just value of the property.

FLORIDA ADMINISTRATIVE CODE:

Rule 12D-8.0062. Assessments; Homestead; Limitations.

...

(4) The assessed value of each individual homestead property shall change annually, but shall

not exceed just value.

(5) Where the current year just value of an individual property exceeds the prior

year assessed value, the property appraiser is required to increase the prior

year's assessed value by the lower of:

(a) Three percent; or

(b) The percentage change in the Consumer Price Index (CPI) for all urban

consumers, U.S. City Average, all items 1967=100, or successor reports for the

preceding calendar year as initially reported by the United States Department of

Labor, Bureau of Labor Statistics.

(6) If the percentage change in the Consumer Price Index (CPI) referenced in paragraph

(5)(b) is negative, then the assessed value shall be the prior year's assessed value decreased

by that percentage.

(7) The assessed value of an individual homestead property shall not exceed just value

Just Value* (aka Just/Market Value) - "The price at which a property, if offered for sale in the open market, with a reasonable time for the seller to find a purchaser, would transfer for cash or its equivalent, under prevailing market conditions between parties who have knowledge of the uses to which the property may be put, both seeking to maximize their gains and neither being in a position to take advantage of the exigencies of the other."

It is important to understand that the 2010 Market Value is based on the condition of the property and market conditions as of January 1, 2010, and is established by analyzing market information, including sales that took place primarily in 2009.