DVC property taxes to rise?

[DVC Mike]

Will the Orange County Appraiser back down and settle as his predecessors have done in their battles with Disney over the assessed value of Walt Disney World Resorts? Or could this actually head to court and result in an increase in our DVC annual dues?

Are DVC Annual Dues going to rise dramatically?

 

[Phonedave]

Does Florida have a cap on how much an assessment can increase per year for commerical properties during a non adjustment year ?

 

[networkpro]

Yes the state constitution was amended in 2008 to limit it to 10% per year for non-homestead property...but of course that comes with a big caveat as well:

The protection of the 10% cap is lost when there is a change of ownership or control. This includes the transfer of the property by sale, foreclosure, or other means (other than tranfers to correct an error, transfers between spouses, and transfers between legal and equitable title). If the property is owned by a corporation, LLC, partnership or other such entity, the cap will also be lost upon a transfer of more than 50% of the ownership in that entity. Thus, a stock transfer may also trigger loss of the cap and re-assessment of the property at fair market value. However, in 2010, the legislature amended the statute to create an exception for publicly-traded companies if the transfer of the shares occurs through the buying and selling of shares on a public exchange

 

[Phonedave]

Yes the state constitution was amended in 2008 to limit it to 10% per year for non-homestead property...but of course that comes with a big caveat as well:

The protection of the 10% cap is lost when there is a change of ownership or control. This includes the transfer of the property by sale, foreclosure, or other means (other than tranfers to correct an error, transfers between spouses, and transfers between legal and equitable title). If the property is owned by a corporation, LLC, partnership or other such entity, the cap will also be lost upon a transfer of more than 50% of the ownership in that entity. Thus, a stock transfer may also trigger loss of the cap and re-assessment of the property at fair market value. However, in 2010, the legislature amended the statute to create an exception for publicly-traded companies if the transfer of the shares occurs through the buying and selling of shares on a public exchange

So, since as far as I know DVC properties have not changed hands, this cap will still apply.

-dave

 

[TheGuyThatMakesSwords]

Wait a minute....

I seem to recall Humphrey telling us that DVC legally "sold" the BRV/CCR property to the developers during the expansion at WL. I was amazed to hear this.... but could guess why: during that period of reno, the contractors own, and are responsible for, the property....

But if this is true? That pattern could trigger Property Tax re-assessments .

 

[DVC Mike]

Wait a minute....

I seem to recall Humphrey telling us that DVC legally "sold" the BRV/CCR property to the developers during the expansion at WL. I was amazed to hear this.... but could guess why: during that period of reno, the contractors own, and are responsible for, the property....

But if this is true? That pattern could trigger Property Tax re-assessments .

No, Walt Disney World Co owns the property. It is leased to the DVC resort's condominium association.

 

[GoofGoof]

Will the Orange County Appraiser back down and settle as his predecessors have done in their battles with Disney over the assessed value of Walt Disney World Resorts? Or could this actually head to court and result in an increase in our DVC annual dues?

Are DVC Annual Dues going to rise dramatically?

BLT tax assessment is already up over 20% from 2014 to 2016 so must be the max 10% per year. I can't see them trying to justify raising it more. I was hoping this lawsuit is challenging the 2016 increase and maybe if Disney is successful owners may actually get a reduction in fees for that line item next year.

 

[Phonedave]

BLT tax assessment is already up over 20% from 2014 to 2016 so must be the max 10% per year. I can't see them trying to justify raising it more. I was hoping this lawsuit is challenging the 2016 increase and maybe if Disney is successful owners may actually get a reduction in fees for that line item next year.

The 10% cap is on the assesed value of the property. If the assessor says your property is worth $100,000, they most they can say it is worth next year is $110,000

Then you apply the municipal tax rate to the assessed amount. If property taxes are 6% of assessed value, then your taxes would go up from $6,000 to $6,600, but the tax rate never stays the same either. That 6% becomes 7% next year. So the 10% increase in taxes is because of a combination of increased assessed value and an increase in the general property tax rate.

-dave

 

[GoofGoof]

The 10% cap is on the assesed value of the property. If the assessor says your property is worth $100,000, they most they can say it is worth next year is $110,000

Then you apply the municipal tax rate to the assessed amount. If property taxes are 6% of assessed value, then your taxes would go up from $6,000 to $6,600, but the tax rate never stays the same either. That 6% becomes 7% next year. So the 10% increase in taxes is because of a combination of increased assessed value and an increase in the general property tax rate.

-dave

The assessed value went up about 10% each year in 2015 and 2016. The mill rates were actually down a little on average over the 2 years. There are 6 or 7 taxing authorities with some up and some down. If Disney wins the lawsuit over 2016 assessed value owners could in theory get a credit next year which would be nice