January 23, 2007

Pat Poston, Director of Tax Services of the Palm Beach County Tax Collector's Office, will discuss the consequences of the delay of the Value Adjustment Board appeal process at the Special Meeting at 3:00pm on Tuesday, January 23rd, 2007.

Current Statistics:

• Approximately $294,000,000 of real estate taxes is subject to VAB petitions. Of this amount, approximately $232,000,000 is paid and approximately $62,000,000 is unpaid.
• Additionally, there is approximately $17,000,000 of tangible personal property taxes subject to VAB petitions. Of this amount, approximately $14,000,000 is paid and approximately $3,000,000 is unpaid.
• It is important to remember that property taxes are collected in arrears. The ad valorem tax collection process contemplates collection of both current and delinquent taxes within well-defined time limits.

Consequences of Delay:

Further delay in completion of the VAB appeal process will result in the following consequences relative to the taxpayers and taxing authorities of Palm Beach County:

1. Refunds to those taxpayers who obtained favorable rulings from the VAB may not be processed until the VAB-certified roll is received by the Tax Collector.

2. Taxpayers who have not paid their taxes, yet have received a favorable VAB decision, may not pay those reduced taxes until the VAB roll is certified to the Tax Collector.

3. No tax certificate sales for delinquent real estate taxes may be conducted on those parcels involved in the VAB process. It is important to note that upon completion of the VAB process and the certification of the roll to the Tax Collector, taxpayers will have thirty (30) days to pay with the four percent (4%) discount and an additional thirty (30) days to pay the March (total) amount of taxes due. Thus, delay beyond mid-March will result in the inability of the Tax Collector to advertise and sell certificates on real estate taxes which will not become "delinquent" until the expiration of the sixty-day payment period. This delay will also preclude the advertisement and validation of warrants for delinquent tangible personal property taxes.

4. In summary, all taxing authorities should consider that approximately $311,000,000 of tax revenue will be potentially delayed pending completion of your VAB process.