Are you leaving money on the table?

Florida law requires that all real property be assessed at just (market) value as of January 1 of each year. In addition, at least once every five years, a Property Appraiser or field appraiser will physically visit and inspect each property in Lake County. Even between physical inspections, property values may change annually due to:

• Sales activity of comparable properties in your neighborhood
• New construction, additions, or renovations
• Changes in zoning or land use
• Market conditions affecting supply and demand

Sales of similar properties are one of the strongest indicators of market value and are carefully analyzed each year.

Just value represents the estimated price your property would sell for on the open market as of January 1, assuming a willing buyer and a willing seller, both acting knowledgeably and without pressure. Florida law requires that property be assessed at just value before exemptions and assessment caps are applied.

To determine market value, the Lake County Property Appraiser’s Office maintains an extensive and accurate database of real estate sales and property characteristics. Each sale is reviewed to confirm that it is an arm’s-length transaction, meaning:

• The buyer and seller are unrelated
• The property was exposed to the open market
• No unusual incentives, distress, or special conditions affected the sale price

Once verified, these sales are compared to similar properties to estimate market value.

Florida law recognizes three professionally accepted approaches to value. Depending on the property type, one or more of these methods may be used.

• Sales Comparison Approach: This is the primary method for valuing residential property. Your property is compared to similar properties that have sold recently in the same or comparable Lake County neighborhoods. Adjustments are made for differences such as size, age, condition, location, and amenities.
• Cost Approach: The cost approach estimates how much it would cost today to construct a building of similar utility, minus depreciation for age, wear, and obsolescence, plus the value of the land. This method is commonly used for new construction, special-purpose buildings, or when limited sales data is available.
• Income Approach: The income approach is typically used for income-producing properties such as apartment complexes, offices, retail centers, and other commercial properties. This approach analyzes potential rental income, vacancy rates, operating expenses, taxes, insurance, maintenance costs, and expected return on investment.

Land is valued using the sales comparison (market) approach. Appraisers analyze recent sales of vacant or similar land and apply units of comparison such as price per acre, square foot, or front foot. Important factors include:

• Location (lakefront, commercial corridor, rural, residential)
• Zoning and allowable uses
• Size, shape, and accessibility
• Highest and best use

For example, lakefront or commercially zoned parcels in Lake County typically command higher land values than inland or agriculturally located parcels.

Under Florida law, all exemptions and assessment caps from the prior owner are removed on January 1 following a change in ownership. Many sellers benefit from long-term Save Our Homes caps that keep assessed value significantly lower than market value. When you reach your first January 1 as the new owner:

• The assessed value resets to just (market) value
• Any approved homestead exemption and portability benefits are applied

This often results in a tax bill that is significantly higher than what the prior owner paid.

This may occur for one or more reasons:

• Millage (tax) rates set by local taxing authorities may have increased.
• The Save Our Homes “recapture rule” allows assessed value to continue increasing by the capped amount even when market value declines, until assessed value reaches market value.

This can occur if:

• It is your first year receiving homestead exemption
• Improvements or additions were completed
• A portion of the property is not homesteaded

Non-homestead property is subject to different assessment limitations.

Yes. Physical improvements such as additions, renovations, pools, or other enhancements (excluding routine maintenance) are assessed at full market value in the year they are completed. After the first year, those improvements become subject to applicable assessment caps.

• Improvements and Renovations: Any additions or improvements to your property (such as room additions, pools, or major renovations) are assessed at full market value in the year they are completed. Routine maintenance (roof replacement, painting, similar repairs) typically does not increase the assessed value.

The 10% assessment cap limits annual increases in assessed value for non-homestead property to 10 percent. Key points:

• It applies automatically; no application is required
• It does not reduce taxes, only limits increases in assessed value
• It does not apply to school tax levies
• Non-Homestead Properties and the 10% Cap: If your property is:
• A rental
• A second home
• Vacant land
• Commercial property

Insurance appraisals are designed to estimate rebuilding cost and typically:

• Exclude land value
• Do not account for depreciation

As a result, insurance values often differ significantly from market value.

TRIM Notices are mailed in August and reflect proposed values, exemptions, and taxing authority millage rates. If you believe your value is incorrect:

• Contact the Lake County Property Appraiser’s Office and speak with your area appraiser
• Review the data used to value your property
• If unresolved, file a petition with the Value Adjustment Board (VAB)

Petitions must be filed within 25 days of the TRIM Notice mailing date.

Yes, if you can demonstrate that the appraised value exceeds market value as of January 1. The VAB:

• Does not set tax rates
• Cannot reduce taxes based on hardship or inability to pay
• Determines only the value and the exemption qualification
• Appealing Your Value – What the VAB Can (and Cannot) Do: You may receive a reduction if you can demonstrate that:
• The appraised value exceeds the market value as of January 1

Even similar homes can have different tax bills due to:

• Different purchase dates
• Save Our Homes caps
• Portability benefits
• Exemptions
• Property improvements or physical differences

Long-term homeowners often have significantly lower assessed values due to assessment caps.

The Lake County Property Appraiser’s Office operates under:

• The Florida Constitution
• Florida Statutes
• Florida Department of Revenue rules and manuals
• International Association of Assessing Officers (IAAO) standards

Our role is to ensure property is assessed fairly and equitably — not to set tax rates or increase taxes.