Owning property always presents a vast number of challenges, many of them financial. This is especially true when it comes to owning commercial property in Florida. Thanks to a famously warm climate and a number of famous attractions and cities in the panhandle, Florida is an extremely popular area for people from throughout the United States and the world to buy property, especially commercial property.

With the extended decline of property value in recent years, property owners, both commercial and residential, are looking for ways to save on their Florida property tax. Although it is difficult, if not completely impossible to sell the property for what it initially purchased for, it is possible to reduce the overall amount of taxes paid on the real estate. In recent years, property values have declined, in some locations, in excess of 30 percent. This marks a substantial drop in overall value, which should be rectified in the amount of taxes paid on property. If the property value has dropped, it only makes sense the taxes paid on the location should also drop. However, the taxes do not simply decline with the market value of the property. Florida property tax appeals must actually be filed. This informs the county of the loss in value and the wish to have the taxable value reviewed. There is no need to pay on a higher property value when the facility can't even be sold for the county appraiser's value. Due to this, filing an appeal on the property tax is essential, as this savings of money can prove rather substantial, especially for larger, more valuable real-estate. 

The tough economy has taken its toll on business owners throughout the state, as many have shrunk in overall employee size and total income. This makes it difficult to run and manage a commercial property, especially when the same amount of tax is paid on the real estate, despite the drop in revenue and overall value. Business owners are entitled to their fare shake, and although many realize their business may not ever return to what it was prior to the Great Recession, there is still hope to build the business back up to something strong. It all starts with cutting out needless expenditures, and for many, this is the excessive property tax on the commercial real estate. With the value of the property down significantly, there is no need to pay the higher level, especially with the net income from the business declining.

Before one is able to go about the Florida property tax appeals process, it is necessary to perform a few minor tasks ahead of time. The faster these tasks are performed and submitted, the better off the property owner is, and the quicker the response time is from the county government. Initially, and most importantly, a review of the assessment on the property must be done. This is essential in Florida property tax appeals. The property can be evaluated using recent sales, market rental rates, typical operating expense ratios, and market derived capitalization rates to get the overall value and note the difference between the county assessment on the facility and the current value. If the location is like most others throughout the state of Florida, there is a rather sizable drop off in the current value of the location. From there, the necessary paperwork requesting a reduction in property tax must be completed and submitted to the local property tax officials. Although a small percentage of individuals actually go about performing this step, it is important to do so sooner rather than later, because it does take time to hear back, and learning the outcome of the request is import as it especially needs to be complete before the next tax season. 

It may take a bit of work and some extra time to appeal a Florida property tax on a commercial property, but it is possible to reduce the overall tax burden of the establishment, as the overall value of real estate has dropped in recent years. This practice can help save a property owner thousands of dollars a year.

Property taxes are a critical source of income for both state and local governments. Property owners nation-wide are subject to taxes on their properties, both commercial and private. Property values and their associated taxes in the state of Florida are highly unique and require an intimate understand of the state's tax code. If a property owner feels that their property taxes are too high based on the states valuation of their property value, they can file a property tax appeal to reduce the valuation of their property and the associated taxes. Such appeals are not a common occurrence in Florida. According to an article in the Palm Beach Post, less than five percent of property owners typically file a property tax appeal in the state of Florida. However, when these appeals are filed and they are successful, the results can be dramatic. Richard Nilsen, the co-founder of a company called Mattress Giant filed a challenge on the county's $14 million valuation of his property and netted himself a savings of $124,000. Such results are, of course, not typical as the average value of an individual's property rarely approaches such a valuation, but the underlying message remains the same: property tax appeals in Florida can yield significant financial rewards if pursued appropriately.

Property tax assessment is serious business. In Florida, the specifics span from the state constitution to local regulations. Section 4, Article VII of the Florida Constitution mandates that property appraisers use the "just value" assessment method. The Florida Supreme Court has ruled that "Just Value" and "Market Value" are legally the same. Other value considerations can include investment value and going-concern value, although they must be related back to "just value" to hold water. 

When appealing assessment results, wiggle room can often be found in the principles of value applied including:

In Florida, property owners have the right to appeal decisions they feel are unfair. Filing a petition to the county Value Adjustment Board can be done in a number of circumstances including:

• When in disagreement with the property appraiser's assessment of your property's value
• When you have experienced a denial of your application for an exemption including as a homestead, as a veteran, or as a senior citizen.
• When receiving a denial of your application for any property classification such as agricultural or historic.
• When you have been denied your application for tax deferral.

If this happens, you can take one or more of the following steps: