NEWLY ELECTED OFFICIAL ORIENTATION Florida Property Appraisers Florida Tax Collectors February 7-10, 2017

FLORIDA’S VALUE ADJUSTMENT BOARD KYLE CHRISTOPHER Title slide with PTO logo.

VAB Overview Quasi-judicial, informal hearing. Independent of property appraiser, tax collector, taxpayers, and local taxing authorities. Neutral venue to hear and decide taxpayer appeals relating to property assessments, exemptions, classifications, and change of ownership/control. VAB process should be fair, uniform, and impartial.

VAB Participants VAB members Special magistrates VAB clerk Two county commission members, one school board member, and two citizen members. Special magistrates Required in counties with populations greater than 75,000, optional in other counties. VAB clerk Performs administrative functions, such as accepting petitions, scheduling hearings, and compiling a list of qualified special magistrates.

VAB Participants VAB attorney Private attorney. At least 5 years of experience. May not represent any of the following parties in any administrative or judicial review of property taxes: Property appraiser. Tax collector. Any taxing authority. Any property owner.

VAB Participants Property appraiser: responsibility to assess property at just value and to determine eligibility for exemptions and classifications. Tax collector: responsibility to collect all taxes on the tax roll by the date of delinquency or collect delinquent taxes as provided by law. Taxpayer/taxpayer’s representative must present evidence that: property appraiser’s assessment exceeds just value or is arbitrarily based on different assessment practices than are applied to comparable properties in same county; shows entitlement to an exemption, classification, portability, or tax deferral.

VAB Timeline By July 1, property appraiser sends denial for exemption or classification (DR-490). In August, property appraiser mails Notice of Proposed Property Taxes (TRIM notice). Contains information on property assessments, exemptions, classifications, and taxes. Taxpayers have 25 days from the mailing of TRIM notice to file a petition with the VAB (30 days for denials of exemptions, classifications, and deferrals). Allowed to have informal conference with property appraiser to discuss concerns and seek resolution.

VAB Basics The members of the board, board clerk, board attorney, and special magistrates must maintain independence from the property appraiser, tax collector, and petitioners. The board members or special magistrates must not communicate with any party (petitioner, property appraiser, or tax collector) without all parties present. Conflicts of interest, or the appearance of conflicts of interest, must be avoided at all times. All meetings of the board are public meetings and must comply with Florida’s Sunshine Law.

VAB Evidence Exchange Basic provisions are in chapter 194, F.S., and more detailed procedures are in chapter 12D-9, F.A.C. 15 days before the hearing, the petitioner must provide the property appraiser with a list of evidence and copies of all documentation for the VAB to consider, along with a summary of evidence that will be presented by witnesses. No later than 7 days before the hearing, the property appraiser will provide the same materials if the petitioner made a written request. If the property appraiser does not comply with the timeframe, the hearing may be rescheduled.

Burden of Proof and Presumption of Correctness Section 194.301, F.S. Burden of proof is on party initiating action. Standard is preponderance of evidence. Assessment Cases – property appraiser establishes the presumption of correctness by showing appraisal was done by following statutes and using professionally accepted appraisal practices. Classification/Exemption Cases – no presumption of correctness.

2016 Legislative Changes In 2016, the Florida Legislature made substantial changes to the statutes governing VAB proceedings. Now professionals and employees, compensated representatives, and uncompensated representatives each have different requirements when representing taxpayers.

Employees and Professionals Employees of the taxpayer, as well as Florida-licensed attorneys, accountants, and real estate brokers and appraisers may represent a taxpayer and file a VAB petition on a taxpayer’s behalf. These professionals must certify under penalty of perjury that they have authorization from the taxpayer. If a professional willfully and knowingly files a petition without authorization, a VAB clerk will require that person to provide written authorizations with all petitions filed within one year. Section 194.011, F.S.

Compensated Representatives Representatives who receive compensation from a taxpayer must have a power of attorney. The power of attorney is valid for one assessment year and must identify the parcel(s). A VAB petition must either be signed by the taxpayer or be accompanied by the power of attorney. Sections 194.011 and 194.034, F.S.

Uncompensated Representatives Representatives who receive no compensation can represent a taxpayer if they have a power of attorney or other written authorization. A power of attorney or written authorization is valid for a single taxpayer, for one assessment year, and must identify the parcel(s). A VAB petition must either be signed by the taxpayer or be accompanied by the power of attorney or written authorization. Sections 194.011 and 194.034, F.S.

Rescheduling Hearings The taxpayer and property appraiser may now reschedule the hearing only a single time and only by demonstrating good cause. “Good cause” means circumstances beyond the control of the person seeking to reschedule the hearing which reasonably prevent the party from having adequate representation at the hearing. Section 194.032, F.S.

Miscellaneous VABs can hear disputes regarding qualifying improvements and changes of ownership or control. (Section 194.032, F.S.) When appointing and scheduling special magistrates, a VAB may not consider the amount of a magistrate’s prior assessment reductions. (Section 194.035, F.S.)

DOR Assistance Online VAB Training Training required for all special magistrates before holding hearings. In counties with populations fewer than 75,000 that do not use special magistrates, either the VAB members or the board attorney must take the training. Training and test: counts as 2 years of experience for appraisers or attorneys who do not already have the required 5 years of experience to serve as a special magistrate.

Assistance Chapter 194, F.S. Administrative Rules: Rule chapter 12D-16 — forms. Rule chapter 12D-9: Requirements for VABs. Uniform Rules of Procedure for Hearings. Certifications and complaints. Rule chapter 12D-10 — powers, duties, functions of VAB. Uniform Policies and Procedures Manual. Taxpayer brochure on VAB process.

Assistance Resources available online: Forms, rule chapters, manual, and brochure. Recent communications from the department. Informational bulletins. VAB training. Annual calendars for property appraisers, tax collectors, and value adjustment boards. List of special magistrates.

Assistance VAB email portal VAB@floridarevenue.com Monitored by technical section. Use to send out communications about VAB. Way for local officials and taxpayers to send questions or comments about the VAB to the department. Maintain contact list for VAB participants and local officials.

Questions?