Appeal Season is in Full Swing. What does that mean for CRE Owners?

Florida’s property tax appeal season is in full swing, and we're working diligently to reduce the tax burdens of our commercial real estate clients while improving cash flow, and maximizing the value of their assets. At FirstPointe Advisors, LLC, we’ve built a track record of achieving successful outcomes for our clients through a deep understanding of the appeal process, diligent analysis, and a commitment to securing fair assessments. Here, we’ll explore some interesting facts about appeal season in Florida and the broader impact of the appeals process on the commercial real estate market.

When is Florida’s Property Tax Appeal Season?

Florida’s property tax appeal season begins each August, following the issuance of the Truth in Millage (TRIM) notices, which inform property owners of proposed assessments and estimated taxes for the upcoming year. Property owners typically have just 25 days from the TRIM notice date to file an appeal. This compressed timeline requires swift and strategic action, which is where the expertise and efficient of a seasoned tax consultant comes into play.

From there, the length of Florida’s appeal season, including hearings and potential litigation, can vary based on several factors, such as the county, the complexity of the appeal, and whether litigation is pursued. Here’s a general timeline:

1. Appeal Filing Deadline (Late August to September): Property owners have 25 days from the issuance of TRIM notices in August to file appeals. This marks the start of the appeal process.
2. Value Adjustment Board (VAB) Hearings (Fall through Early Spring): Once appeals are filed, hearings before the Value Adjustment Boards typically begin in the fall. Depending on the county and the volume of appeals, hearings can extend into late winter or early spring of the following year.
3. Decision Issuance and Review (Winter to Spring): After hearings, the VAB issues written decisions, often within a few weeks to several months, depending on the board's workload.
4. Litigation (If Applicable): If the VAB decision is unfavorable or further reductions are sought, FirstPointe Advisors, on behalf of our property owners, would pursue litigation through circuit courts. This process can extend the appeal timeline significantly, often taking several months to over a year to resolve, depending on the case's complexity.

Keys to a Successful Outcome

Achieving successful property tax appeals requires a blend of local market knowledge, data-driven analysis, and negotiation skills. Here’s what sets FirstPointe Advisors apart:

• Deep Market Insight: Our team's expertise in Florida’s diverse commercial real estate market allows us to identify discrepancies in assessments and present compelling evidence for reductions.
• Strategic Relationships: We have established strong working relationships with local appraisers and Value Adjustment Boards (VABs) across all of Florida's 67 counties, enabling productive discussions and favorable results.
• Tailored Approach: We recognize that each property is unique, and our approach to appeals is customized to reflect the specific characteristics and financial performance of each asset.

Impact of the Appeals Process on Commercial Real Estate

The appeals process has a significant ripple effect on Florida’s commercial real estate market:

• Improved Investment Value: Successful appeals reduce tax liabilities, improving net operating income (NOI) and boosting the overall valuation of properties. This can attract more investors and increase demand.
• Cash Flow Benefits: Lower property taxes free up capital, allowing owners to reinvest in their assets, expand portfolios, or enhance tenant amenities, contributing to a healthier market.
• Market Competitiveness: Fair assessments create a more balanced playing field, ensuring that similar properties are taxed equitably. This fosters a transparent environment where investment decisions are based on actual market dynamics rather than inflated tax burdens.

Additional Key Points to Consider During Appeals

• Data Accuracy is Vital: Accurate and up-to-date property data is essential for a successful appeal. Whether it’s income and expense statements, tenant rosters, or recent sales comparables, having the right documentation can make all the difference.
• Different Property Types, Different Challenges: Each property type—be it retail, multifamily, office, or industrial—faces unique challenges in the appeals process. For instance, hotel and retail properties may see significant fluctuations in value due to market trends, while industrial properties may be impacted by zoning changes or land values.
• Consider Future Development: Owners of undeveloped land or properties with potential for redevelopment should also consider the impact of assessments on their future plans. The appeals process can provide a chance to secure a more favorable baseline assessment, influencing tax outcomes for years to come.

How Can FirstPointe Advisors Help?

Navigating Florida’s property tax appeal season can be complex, but it offers significant benefits for commercial real estate owners who take a proactive approach. At FirstPointe Advisors, we’re dedicated to helping our clients optimize their property tax strategies and achieve fair and equitable assessments. If you’re considering an appeal for next year, now is the time to start having the conversation.

Contact a trusted consultant at FirstPointe Advisors today:

• Brian DePotter: [email protected]
• Nick Mau: [email protected]
• Deneen Maly: [email protected]

Or call us at (954) 282-2005 to discuss your specific needs for your commercial properties.