Citizens contest tax bills
Property assessments exceed market values
BY VICI PAPAJOHN Gulf Breeze News vici@gulfbreezenews.com

Mike Godfrey, Pensacola Beach home owner and investor, has visited nearly every Property Appraisers office in Northwest Florida to contest the assessed values on the tax bills of his properties.

"Escambia did offer a slight adjustment down on my Portofino unit assessment, but it is still high," says Godfrey. "Assessments are now exceeding market value. Insurance, taxes and interest rates are all escalating right now. Investors and homeowners are getting slammed."

Godfrey appealed his assessments for property in Escambia, Santa Rosa, South Walton and Okaloosa Counties.

"My Okaloosa County property is assessed at a price way above where comps (current sales) are coming in," he says. "Many people cannot afford these high tax bills and want to sell, but if you get lucky, property will sell maybe after months and months. These assessments are elevated by the previous boom markets.

"I told that to the property appraisers office in Okaloosa County and she said 150 people contested and a letter (from her) made 50 go away. Among the other 100 contesters, no adjustments were made. She told me I was not alone, but even if I pursued this, based on precedent, no concessions would be offered."

Santa Rosa County Property Appraiser Greg Brown confirms the predicament. "I've had a number of citizens concerned about their taxes going up. They are receiving tax bills reflecting an increase in value, and they are petitioning for value decreases. I have had calls about the values being higher than the market. People don't understand how the tax system works, and I don't blame them for being concerned."

"Values may be dropping, but we place a value as of January 1, 2006 - reflecting 2005 prices. Those prices were inflated due to post-Ivan, post-Dennis conditions. We saw a 34 percent increase in property values. If the values go up 34 percent and the taxing entities do not change their millage rate, an individual's tax bill will go up. This is why I went before the Board of County Commissioners on June 22 and asked them to drop the millage rate. Insurance rates went up, and people were already stressed. All but Commissioner Goodin voted to keep the the millage as is."

"Escambia County did not return my calls after I left a message," Godfrey remembers. "In early October 2006, my tax bill dropped when the Escambia County property appraiser decreased assessed values - but to a level still exceeding market values. Then a letter postmarked October 31 granted a second correction which took the assessment down again, still above fair market price. I can infer that they looked at it after my call, even though they did not call me back. The times I have reached them, they were pleasant on the phone, but asserted that they were bound by the law."

Brown confirms that the property appraisers are bound by constitutional law to perform an annual audit of closed properties, and to assess property owners accordingly. "Buyers and sellers affect the market - assessments are based on facts and closed sales. The variable," he clarifies, "is the millage rate. We do not have an option, the taxing authorities like the school boards, cities and county commissions do. Chris Jones [Escambia County Property Appraiser] and I went before the Governor's Task Force on Property Tax Reform on Dec. 15 asking them to limit revenue and the amount of increase over a five-year moving average period. We hope they will listen."

Brown gives the example that one year's marked increase would not be immediately assessed, like the 34 percent increase in 2005, but would be averaged over five years instead under his proposal. The tax bills payable in March 2007 are based on January 2006 assessment from record prices of sales from 2005.

"I don't know what the answer is, but the problem is that property owners assessments are adding to the burden of taxes and insurance because insurance wouldn't pay,"elaborates Godfrey. "I am absolutely concerned how this will affect the entire state's economy. Many investors will leave this market. Investors have pulled out for the time being until they can see some value and a responsive government."

Godfrey has always paid taxes, kept a very good credit score and maintained a wellpaying job. "I accept my responsibility, I do not blame any one factor. But I do see where our government could provide a changed, fair assessed value, in this soft market. That could make a huge difference and provide some relief. Instead, they are saying we will wait until the next assessment period and make any changes reflecting the downturn. That may be too late," warns Godfrey.

Brown sees little immediate relief without legislative or taxing authority changes. "The Market in 2006 will come into play in January 2007 when assessments are being done. In some areas, we will see and grant value decreases. But, overall, there is still a three percent increase countywide. Assessed values multiplied by millage rate equals taxes," Brown summarizes. "The variable is in the millage rate; that's where relief can come from."