TALLAHASSEE, Fla. – Gov. Charlie Crist signed one of FAR’s top legislative initiatives yesterday: Florida’s “highest and best use” property assessment standard will become fairer on Sept. 1, 2008, under HB 909 by Rep. Peter Nehr (R-Tarpon Springs). Starting in September, the state will retain the “highest and best use” standard, but “best use” has been clarified and, for property tax purposes, must adhere to reasonable and fair standards.
Limitations on “highest and best use”
A local government can no longer reach for the stars when taxing property at “highest and best use.” HB 909 limits a property tax increase about “current use” to “the legally permissible use of the property.” It specifically excludes a higher taxation value if the use requires “any zoning changes, concurrency requirements (or) permits necessary to achieve the highest and best use.”
Value Adjustment Boards
Local government officials will no longer make value decisions unilaterally. HB 909 changes the makeup of the value adjustment board (VAB) in each county to give residents more say in property assessment challenges. New standards call for two members of the county governing body, one member of the school board, and two private citizens with one appointed by the county and one by the school board – a local homesteaded owner and a business owner occupying commercial space in the school district. Previously, a VAB had three members of from the local governing body and two school board members – a group with an inherent bias since they benefitted directly from their support of a property appraiser’s conclusions.
Burden of proof
Calling it the “express intent of the Legislature,” HB 909 states that a taxpayer “shall never have the burden of proving that the property appraiser’s assessment is not supported by any reasonable hypothesis of a legal assessment.” While the law does not force the appraiser to prove the merits of an appraisal decision, it does attempt to tip the balance a bit in favor of property owners who contest an appraisal.
Agricultural assessments
HB 909 changes little about current standards for an agricultural assessment, but adds a caveat that “in no event shall a minimum acreage be required for agricultural assessment.”
© 2008 FLORIDA ASSOCIATION OF REALTORS®
