Tax relief has been a hot topic lately with phase one of Governor Christ's two-part plan going into effect soon, but some Florida residents have been finding relief for years. The residents of Fisher Island at the foot of South Beach have been getting relief by challenging property appraisals and winning.
From 2002 to 2005, residents of Fisher Island have managed to save over $15 million in taxes after challenging their property values before the Miami-Dade County Value Adjustment Board. In 2006, over 500 petitions went before the board and many won. “Every American has a right to appeal his property taxes, and many Americans choose to do so. The people of Fisher Island paid $21.5 million in property taxes last year and received virtually no services from the county,” Fisher Island Community Association president Mark James said, “We have no apologies for our right to appeal our property taxes.”
These appeals have dropped home values on the island by more then $965 million below what the SEIU says the properties were initially valued at. The actual tax bills were subtracted from the amount SEIU claimed. They then added in an annual increase of 3% to all homesteaded properties, while the average increase was applied to non-homesteaded properties.
One Fisher Island home owner saved $183,384 on their tax bills from 2002 and 2005 by challenging the appraisal of their three-bedroom condo while another saved $158,289 during the same time period. Overall, home values on the Island rose 14 percent; while non-homesteaded Miami homes rose 90 percent and 2006 appeals are still being pursued.
The Oceanside at Fisher Island, a condo complex, saw reductions in the values of all their units due to restricted views and the sale prices of other similar units. This resulted in an average cut of $190,526 for each unit. One unit was reduced by $477,810.
Home owners are able to appeal to the VAB or their County Property Appraiser if they feel their homes are not valued correctly. Board members include County Commissioners Joe Martinez, Audrey Edmonson and Javier Souto and school board members Agustin Barrera and Robert Ingram. A special magistrate is appointed by the board to oversee the petitions. Currently, 19 real estate agents and seven attorneys are serving as magistrates. Appeals cost $15 and must be filed within 25 days after receiving a tax bill. Condo associations filing joint appeals pay $5 per property folio. In all, 49,577 appeals were filed for 2006. By the end of May, 32,000 appeals had been heard. Miami-Dade saw the most petitions filed, and about 40% of filers won.
Fisher Island residents currently have 500 appeals pending before the VAB out of 750 listed residential properties. Most will have their appeal heard on June 27th. Only a handful of those appealing will actually be at these hearings. There is a maximum reduction of 5% permitted for each and if the board exceeds that, the property appraiser has the right to appeal in the Miami-Dade circuit court. “If the VAB allows a reduction, the PA [property appraiser] determines within the context of its limited resources which reductions to challenge. Challenges are often lengthy and invariably expensive. As such the [property appraiser’s office] has to consider the cost effectiveness and the chances of mounting a successful challenge,” Patrick Smikle, spokesman for the appraiser’s office, wrote in an E-mail in 2005 that only 105 appeals were filed by the property appraiser's office out of 6.578 properties that met the requirements for a challenge.
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