1. VAB Training Introduction Property Tax Oversight Certification Training Team 2010 Value Adjustment Board Training VAB Introduction

2. VAB Training Introduction Welcome The Value Adjustment Board training complies with Section 194.035(3) of Florida Statutes. Training must be completed by all special magistrates For counties not using special magistrates, training must be completed by the VAB attorney or members of the VAB. Special magistrates with less than 5 years of experience are also required to take and pass the exam at the end of the course. If you are new to the DOR online courses, please review the Getting Started Tutorial – a five minute overview on using this course.

3. VAB Training Introduction Contents of Training This training has been divided into the following sections: 1.Introduction: Provides an overview of the property tax process as well as defining terminology and introducing the people involved in the VAB process.VAB 2.Petition Process: Covers what happens between the receipt of the TRIM notice until the start of the VAB hearing.TRIM 3.Hearing Procedures: Covers procedures which govern the hearinghearing 4.After the Hearing: Post hearing procedures including recommended decisions and remands. 5.Substantive Law: Provides an overview of the substantive law that the special magistrate will be applying. This section is customized to the learner and may include subjects such as appraisals, classifications, and exemptions.classifications exemptions. 6.Resources: Provides contact information and website addresses for useful information.

4. VAB Training Introduction Upon completing this section the learner should: Demonstrate an understanding of the ad valorem tax processad valorem tax Understand the options available to a taxpayer who is unhappy with a decision or assessment made by the property appraiser or tax collectorassessment Identify the people involved in the VAB process and understand their roles Understand and use the terminology in the ad valorem taxation and VAB processes. Be familiar with the Taxpayer’s Bill of Rights

5. VAB Training Introduction CFTC/CFTCA Course Title Overview of the Ad valorem taxation process What’s Covered: Factors involved with the ad valorem taxation process

8. VAB Training Introduction CFTC/CFTCA Course Title The people: roles and qualifications What’s Covered: Responsibilities of all VAB parties

10. VAB Training Introduction CFTC/CFTCA Course Title Definitions of key terms What’s Covered: Key terms explained as they relate to the VAB process

12. VAB Training Introduction CFTC/CFTCA Course Title Taxpayer’s bill of rights What’s Covered: A breakdown of the taxpayer’s property tax rights

14. VAB Training Introduction CFTC/CFTCA Course Title Exam Preparation What’s Covered: Exam practice questions

16. VAB Training Introduction Abbreviations The following abbreviations are used during this training and in many other materials that are relevant to value adjustment boards. “VAB” means Value Adjustment Board “S.” or “s.” means “Section” and is typically used in statutory references. “F.S.” means “Florida Statutes”. “F.A.C.” means “Florida Administrative Code”. This is the publication containing all the Departmental rules for the State of Florida. “TPP” stands for “tangible personal property”, which is any physical property other than real property and improvements to real property. “DOR” is a reference to the Florida Department of Revenue.

17. VAB Training Introduction Ad Valorem “Ad valorem” means “according to value” and refers to the taxation of property based on its value.

18. VAB Training Introduction Assessed Value “Assessed Value” is different from market value in that it is affected by both classifications and assessment limitations. Exemptions are them applied to the assessed value to arrive at the taxable value.

19. VAB Training Introduction Assessment “Assessment” is a notoriously imprecise term. When used in the VAB context, it typically refers to the market value of the property. It is initially determined by the property appraiser, and is listed as market value on the TRIM notice.

20. VAB Training Introduction Assessment Limitations “Assessment Limitations” are limitations on the amount the assessed value of the property can grow each year. This includes the 10% growth cap on all property and the “save our homes” limitation on homesteaded property.

21. VAB Training Introduction Classification Classification” or “Classified use property” refer to property which is assessed at less than its true market value due to the way the property is currently being used. Examples include agricultural property and working waterfronts.

22. VAB Training Introduction Eight Criteria “The Eight Criteria” refer to the provisions of s. 193.011, F.S., which lists eight factors that must be considered when making an assessment.

23. VAB Training Introduction Exemption An “Exemption” is a reduction to the assessment which is based either on the use or ownership of the property. Examples include the homestead exemption and religious exemptions.

24. VAB Training Introduction Final Order “Final Order” is the decision rendered by the VAB. It may either be what is produced after the VAB reviews a recommended order form a special magistrate, or the initial order written by the VAB if the VAB did not use a special magistrate.

25. VAB Training Introduction Hearing “Hearing” refers to a proceeding where both parties present their evidence. If the hearing is conducted by a special magistrate it is separate and distinct from a meeting. However, if the VAB hears testimony directly, that proceeding will qualify as both a hearing and a meeting.

26. VAB Training Introduction Meeting “Meeting” means any meeting of the Value Adjustment Board. It includes meetings where recommended decisions are accepted and final orders are issued as well as meetings at which discuss administrative matters, and meetings where petitions are heard.

27. VAB Training Introduction Petition “Petition” means a petition to the value adjustment board. This petition is usually filed on a DOR form.

28. VAB Training Introduction Recommended order “Recommended order” is the written decision produced by a special magistrate which contains findings of fact and conclusions of law.

29. VAB Training Introduction Save Our Homes “Save our Homes” refers to the assessment limitation described in s. 193.155, F.S.

30. VAB Training Introduction Taxable Value “Taxable Value” is the value on which ad valorem taxes are calculated. It is derived by taking the just value or classified use value of the property, applying any assessment limitations and subtracting the value of any exemption.

31. VAB Training Introduction Three approaches to value The “Three approaches to value” or “Three appraisal methodologies” are the cost less depreciation approach, the income capitalization approach, and the sales comparison approach.

32. VAB Training Introduction TRIM notice The “TRIM notice” is the notice issued by the property appraiser under s. 200.069 F.S., which inform each property owner of the market, assessed, and taxable value of their property as determined by the property appraiser and provides them of notification of the proposed tax rates of local taxing authorities.