In Osceola County, the newest tax bill proposals were just released. This has caused some homeowners to reconsider selling at the recommended price their Realtor recently gave them. The new tax proposals are scaring quite a few Osceola County homeowners. But, what they do not realize is like anything a tax assessment can be challenged.
The tax office collects their data much like Realtors do. Based on comparable sales, Market Value, and Appraisals. The County bases their tax assessment on what was sold the prior year, and at what price as a means of determining the value for tax purposes of your property.
However, In January 2006, it was almost like someone (buyers and investors) flicked off the light switch in Real Estate resales, and the market slid downward drastically from the 2005 boom. So in doing comparables, it appears the Tax Assessors Office may have calculated the rates at which the property appreciated during that period, and reapplied the increase percentage exponentially.
In recalculating, and finding sold comparables, the Assessed Value was more like the Market Value, which came as a shock to the Tax Office. This would cause some serious reconsideration since there is an enormous difference in opinion of value.
Even with the reduction in Tax Reform recently passed, which should have meant a rollback and adjustment, the problem in the base tax value, began in 2005 when values skyrocketed and many properties were re-assessed due to hurricane damage repairs and improvements made in conjunction with those repairs.
Additions for example, would have reset the Assessed Value as they affected the Market Value at that time. Not protected under the Save Our Homes Act. (Which capped tax increases to 3%)
The majority of property owners were unaware of this possibility at the time improvements were made. Given the enormous magnitude of damage sustained by hurricanes Charlie, Frances and Jeanne in 2004 many homeowners faced with major repairs took that time to make additional improvements to their homes. Predicated on the need for new roofs and other structural repairs. These repairs and improvements became the grounds for a reassessment which coincided with the Real Estate Boom and rapidly excelerating prices.
The 2005 Real Estate Boom's ramifications, appear to have been long and lingering. In some cases taxes rose as much as 44 % over the previous year. The 9% roll back is of little help when the remaining 35% has caused such a skew in "Market Value" which is used for Assessment purposes.
It is arguable in some cases that the "Market Value" determined would have ever commanded that figure in the 2006 Real Estate Market, which produced a sudden cease in sales as opposed to a slow descend. It was paramount to falling off a price cliff.
Now in 2007, homeowners are faced with inflated Market Values which their property taxes are based upon will see little relief contrary to the expectation that a tax reduction would ease the financial burden on homeowners. In addition to seeing their equity evaporate, they have lingering tax liability.
As foreclosures reach historical highs, the sale of Bank Owned, and foreclosed properties at lower prices will drive the Market Value downward and should help equalize the overall tax burden on homeowners in the coming year.
The impact of the Super Tax Exemption to be decided on January 29th, 2008 in conjunction with the Presidential Primary Election if passed would not come into effect until November 2008. However, if the reduction is based on inflated Market Values determined by the Tax Assessors Office, it will have a significantly reduced effect based on the inflated Market Values used for tax purposes on the current bill.
Many homeowners incorporated payment of their property taxes into their Mortgage payments. As a result, the increase in Property Taxes forced fix payment loans to increase in order to satisfy the deficiency created in a higher assessment.
Tax Payers, have the right to request a review of their proposed property taxes. Home Owners can call the County Tax Assessors Office and request one, the County will usually be responsive in some manner to your questions. If there is a drastic difference in value, they will send out an Appraiser at no charge to the homeowner to Appraise the Property.
With cost of living increases failing to meet the actual cost of living, it may be a good idea to review your tax bill closely and contact the County Tax Appraisers Offices if you disagree with the Market and Assessed Values.
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