PTAG Provides A Strategic Approach That Can Alleviate Florida Property Owners' Tax Challenges

Navigating Florida’s complex commercial property tax landscape can be overwhelming for property owners.

From managing income and expense documentation to developing strategies for reducing tax liabilities, owners need a trusted team to meticulously analyze this information and offer expert guidance to avoid costly mistakes, said Tim Hart, partner at Property Tax Alliance Group, a specialized property tax consulting firm based in Fort Lauderdale. 

Together with PTAG partner Jeff Nelson, Hart offers a step-by-step strategy for successfully navigating the county assessment process, which involves understanding key deadlines, responding to county requests and implementing strategic tax savings measures.  

Seek Expert Guidance On Annual Property Income And Expense Letters 

Each January and February, Florida property appraisers send income request letters to commercial property owners, asking for essential documents like profit and loss statements and rent rolls to reassess property values for the new year. Hart said that these income submission letters often include arbitrary deadlines, which are not legally mandated and can be misleading, causing property owners to feel pressured to respond with unnecessary information. 

He also recommends PTAG’s clients to forward all income requests to its team, along with the relevant property information, enabling the firm to conduct a comprehensive review of the data.

 “Owners that take the initiative to provide us with income and expense statements, rent rolls, broker opinion values, inspection reports, capital expenditure listings and other property-specific data empower them to develop a compelling case for lower assessments,” Hart said. “Based on our analysis, we can develop a strategic approach to manage the information flow with county appraisers, ensuring the best possible outcome while providing our clients peace of mind.”

File Tangible Personal Property Compliances Early To Avoid Penalties

Nelson said that the firm also assists Florida property owners with filing their tangible personal property returns, or TPP. TPP includes physical assets that hold value but are not a part of the real estate itself, such as in-unit appliances, furniture, computers, generators and leased equipment. 

Nelson stresses the importance of filing these returns early to avoid costly mistakes and penalties. 

“TPP returns are due by April 1 each year, and since Florida is a self-reporting state, it’s the taxpayer’s responsibility to file on time,” he said. “Late filings incur a 5% penalty per month, which can add up quickly, reaching a 25% penalty if the return is not filed. If property owners fail to file, they lose their right to appeal the county’s assessment.”

PTAG requests that clients provide a list of asset additions and deletions from the previous calendar year, using this information ensures accurate and timely filing for TPP returns, he added.

Nelson said the advantage of having PTAG handle the filing is that it ensures assets are properly classified for accurate depreciation, excludes any non-taxable assets and guarantees timely submission to avoid penalties and preserve appeal rights. Additionally, it can help clients qualify for the $25,000 exemption on their taxable value. 

To stay ahead of the ever-changing market, property owners should collaborate with a tax expert who can help fine-tune their tax strategies to increase long-term profitability, Nelson said.

“By harnessing in-depth market insights, effective data management and cutting-edge transaction strategies, CRE investors can navigate the complexities of property tax management and position themselves for success in the coming year,” he said. “For those dedicated to thriving — not just surviving — in Florida’s competitive CRE market, now is the perfect time to reassess and strengthen their property tax strategy.”

This article was produced in collaboration between Studio B and Property Tax Alliance Group. Bisnow news staff was not involved in the production of this content.

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