Tax assessment query

5 Replies

A piece of large commercial land in Pasco County I am looking to acquire is for sale at 1.5 MM. For the business I am in it is worth that for me. The property was last sold in 2001 for 290K and the tax assessment of the property is at 55K thus the real estate taxes are very low. I believe the reason that its assessed at 55k is due to the fact that on the property appraiser website most of the property is listed as low - lands. If I acquire this for 1.5 MM, would the tax assessment jump? Do I need to do some "strategical structuring" of the sale such that the sale price will be lower?

Hi @Jacob Johnson , you can certainly expect the assessed value, and therefore the annual tax amount, to jump upon sale.  A sale is an event that gives the county a greenlight to adjust the value and you better believe they are not sad about doing so.

As far as suppressing the sale value goes . . . I'm not sure of any strategies you can use for that, but I'm following this with interest to hear what others know of.

Originally posted by @Jacob Johnson :

A piece of large commercial land in Pasco County I am looking to acquire is for sale at 1.5 MM. For the business I am in it is worth that for me. The property was last sold in 2001 for 290K and the tax assessment of the property is at 55K thus the real estate taxes are very low. I believe the reason that its assessed at 55k is due to the fact that on the property appraiser website most of the property is listed as low - lands. If I acquire this for 1.5 MM, would the tax assessment jump? Do I need to do some "strategical structuring" of the sale such that the sale price will be lower?

 You should definitely investigate the low area and how buildable the land is before you buy. You can’t suppress the tax value but you can contest it by providing justification for your assumption of value.

@Jacob Johnson

While commercial is a little different, I didn’t think FL set the appraised value as the recent sale value like CA is notorious for. I’ve heard that FL assessors are behind. Perhaps look at some other recent sales of other properties and see if they are out of wack.

Are concerned about a single re-assessment or a county/region wide assessment. If the former, I’d look up records for the past few years and see if the assessor is “doing anything.” Otherwise, I wrote a long post about how the former shouldn’t matter, although it will matter somewhat more with commercial. Let me know if I should try to dig up that post for you.

Good luck.

You need more details - Like the location.  OR (my hood) is a total outlier on how we do prop taxes.

However, odds are there are state laws on tax assessments and the county (decision-maker) has it's own process.

If you get a change in the assessment you don't like, there are runners that can do appeals, but you need a d*** strong case since govt doesn't like giving money back.  Get someone that has gone to the tax appeals board prior, you don't want to do it yourself.

I usually talk to a property tax attorney in the area. They tend to know the intricacies of that specific market and how case law and appeals typically play out. They also usually know if re-assessments happen on sale or every so many years. Property taxes and processes can vary wildly from state, to county, to city even. The DETAILS matter.

Each year you hold the land is a cost in taxes until you see your eventual gain on the resale or developing the land (hopefully if allowed or is possible) to the land use you desire.

No legal advice given.

Property tax attorneys.

https://www.aptcnet.com/