Of all real estate markets in South Florida, Miami-Dade County and the City of Miami are the most dynamic in terms of commercial property transactions, assessments valuations and tax protests. When compared to other markets in the Sunshine State, property tax rates in Miami are generally above average; however, estimation, collection and enforcement tend to present a substantial degree of complexity.
Miami Real Estate and Property Taxation
As a major metropolitan area with considerable real estate, industrial and corporate activity, the Miami-Dade County Tax Collector’s Office tends to be very busy. When it comes to property, two Ad Valorem duties are collected: tangible personal and real property taxes.
The Property Appraiser is in charge of making property value determinations, which go into effect on January 1st of every year. Ad Valorem taxes are assessments made based on the type of property, structure and land purpose, which includes: agricultural, vacant, residential, and commercial. Local or district taxing authorities set millage rates that are multiplied by the assessed value; some of these authorities include: municipalities, the South Florida Water Management District, the School Board, the Children’s Trust, and others.
Rental income information can be used to make accurate tax assessments; the documents that should be furnished to County assessors include: federal income tax returns, lease agreements, income statements, expenses, and rent rolls.
Property Tax Rates During the Economic Recovery
Traditionally, property taxes have been the lifeblood of the Miami economy. When the American housing bubble burst in 2007-2008, the South Florida region entered a crisis era that lasted until about early 2014, which is when revenue collectors reported that the countywide property tax base had expanded by nearly seven percent.
The use and application of property taxes in Miami usually end up being thorny political issues, particularly when professional sports teams tap into those funds to finance the construction of stadiums and arenas. To this effect, when retired soccer star David Beckham announced that his group would not pursue property tax funds to finance a new stadium in Miami, taxpayers were relieved.
Property tax calculations in Miami are quite complex, particularly with regard to land and structures used for commercial purposes. When compared to other counties across the United States, Miami-Dade has a considerably high median property tax rate. It is not unusual to see tax bills demanding nearly five percent of property income and more than one percent of property value; as such, issues related to unreasonable assessments are often raised by taxpayers.
Tax Appeals in Miami
The South Florida region is known for its high volume of property tax appeals and disputes, particularly in Miami. To this effect, the Value Adjustment Board and the Miami-Dade County Property Appraiser find themselves busy for most of the year. A well-prepared appeal filed before the Value Adjustment Board can result in significant tax savings and capital preservation. Filing an appeal does not result in tax increases; in fact, county appraisers often delve into appeals data to adjust their valuation methods as they investigate issues related to construction defects, effective rent, code violations, etc.
Assessment Technologies can prepare and file your property tax appeal today. Please contact us for a Free consultation.