Physical Inspection of Property

Property Tax Administration Bulletin: PTA 07-03

To: Property Appraisers From: James McAdams Date: May 10, 2007 Bulletin: PTA – 07-03

The Property Tax Administration Program has recently received inquiries from property appraisers concerning physical inspections of property. The purpose of this communication is to address matters relating to the requirements pertaining to the physical inspection of property. The statutory requirement for a physical inspection of each parcel at least once every five years is part of Florida’s interactive legal framework for the just valuation of all real property.

Legal Framework Pertaining to Physical Inspections

Section 4, Article VII of the Florida Constitution requires a just valuation of all property for ad valorem taxation. The Florida Supreme Court has defined just value as: “The amount a purchaser willing but not obliged to buy, would pay to one willing but not obliged to sell.” 1 Buyers and sellers of real property typically consider a number of factors in their decision-making processes, particularly the size, condition, highest and best use, and present use of the property, along with other legal, physical, and economic attributes of the property.

Section 192.042, Florida Statutes, requires that all real property be assessed at its just value on January 1 of each year. Section 193.023(2), Florida Statutes, provides the following: “In making his or her assessment of the value of real property, the property appraiser is required to physically inspect the property at least once every 5 years...”

Section 193.011, Florida Statutes, provides eight factors that Property Appraisers must consider when arriving at just value. At least three of these factors are directly related to physical inspections of the property, specifically: highest and best use in the immediate future and the present use; the quantity or size of the property; and the condition of the property. The other five factors, at a minimum, depend upon the collection and maintenance by your office of complete, accurate, and timely data on the physical attributes of the property. Physical inspections of all real property parcels at least once every five years are necessary to collect and maintain accurate property records for the annual just valuation of each real property parcel.

Taken together, these provisions of Florida law require Property Appraisers to have effective processes for the annual collection, maintenance, analysis, and application of complete, accurate, and timely data on the legal, physical, and economic attributes of real property. Physical inspections of property are an essential part of such processes.

The term “inspect” is commonly defined (see Merriam Webster’s Collegiate Dictionary) as follows: “to view closely in critical appraisal.” This same source provides the term “scrutinize” as the synonym for “inspect,” and defines “scrutinize” as follows: “to examine closely and minutely.”

Based on the information above, the Department advises your office to apply the term “physically inspect” as a requirement that trained representatives of your office personally visit and physically inspect each parcel of real property at least once every five years to meet the requirements of Florida law. Additionally, the Department advises your office to ensure an ongoing process of receiving items such as building permits and new subdivision plats from local regulatory authorities, and then physically inspecting the parcels involved and recording the information necessary for compliance with Florida law.

If you have any questions regarding this matter, please contact Joel Schubert at (850) 488-3335.

1 See Florida Supreme Court’s decision in Walter v. Schuler, 176 So.2d 81 (Fla. 1965).