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Friday, September 13, 2013

Mall in downtown Miami was given a 94% property tax reduction

The County’s property assessment consists of two components--Land and Building value.  

The mall, in downtown Miami is taxed for a building value which is not an asset and its best use would be to demolish it and build a skyscraper at that site.
http://en.wikipedia.org/wiki/Downtown_Miami


At a recent Value Adjustment Board before a Special Magistrate for the 2012 property tax assessment, a 94% reduction was granted for the building.  It was reduced from $1,762,500 to only a “token value” of $100,000

The argument presented by Barry Sharpe pointed out that the County was in effect “double-dipping” by charging taxes on land that is not buildable in its present state, plus charging additional taxes on an old building with a liability value. 

The County was assessing the mall, comparing its assessment with the values of other “supposedly” like parcels of land, that actually have the ability to build an 80 story skyscraper. 

In order to obtain the highest and best use at this, it should first be demolished.  Then, it would no longer be “handicapped” with an old building in the way.  Having such a building is actually a negative for a builder.  One has to then deal with demolition, environmental matters, evicting and relocating tenants, etc.  All this takes time and money. 

An investor or building contractor such as Sharpe, who handled the tax appeal, would not want to purchase with so many unknowns.  He would prefer purchasing a vacant lot, with the ability to build, from day one.

This is an example as to how one can have an income producing building in downtown Miami and on the other hand, not have to pay taxes on the building.   This is a win-win situation for the property owner.

Property tax appeal assistance: www.PTAGflorida.com

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