Assess Property Based on Current Use, not Imaginary Use, says Sen. Haridopolos

In response to Floridians' continued demands for property tax relief, the Florida Legislature began debating various proposals during the first week of Florida's 2007 legislative session. The first such proposal to come before the Senate would dramatically alter the way in which property is appraised: it would require property appraisers to assess property according to its current, existing use, not according to a hypothetical "highest and best use." It is expected to lower taxes on homestead and non-homestead property alike, benefiting homeowners, renters, and business owners.

Under the current system, the property appraiser may consider eight factors in assessing property. One is the "highest and best" use to which the property could potentially be converted. This allows the property appraiser to assess an apartment complex as though it were a timeshare condominium, on the theory that the property could readily be converted to the more valuable -- but imaginary -- use. The Senate proposal would require the property appraiser to base assessments on reality, not hypothesis.

"We've got to move away from taxing potential," Senator Mike Haridopolos said. "That's like you are going to put a higher income tax on a guy who's at Harvard Law School. That's not fair. He hasn't graduated."

Exact details of the proposed legislation will be released this week.

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