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Friday, August 17 2007 @ 09:05 AM Central Daylight Time
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As the US staggers from the current subprime mortgage sector slump, Florida commercial property owners are now in for an added punch as tax increases on real property assessments are incoming statewide, and this comes exactly at a particularly bad time.
Across the three-county region of Sarasota, Manatee and Charlotte, around 9,000 commercial property owners have received their initial property tax notices over the past few days, with their assessed values going up by an average of 10 percent. Figures collected by news analysts show 88 percent of auto dealerships, 87 percent of nightclubs, 86 percent of restaurants, 77 percent of golf courses, 75 percent of office buildings and 71 percent of hotels in the three-county area saw increments in their appraisals this year.
The county that saw the biggest number of increases was Sarasota, where 4,045 businesses, or 89 percent of commercial property, were assessed upward.
Property values at the Sarasota Square Mall have risen to an whopping $21 million and taxes are up $223,000 compared with last year. The Hyatt Sarasota's tax bills are up $222,000. An auction shop for example in Palmetto will pay $2,740 more, and a bowling alley in Venice will cough up $1,380.
However, despite such gripes, the higher appraisals do not seem to be a surprise for property owners. The commercial real estate market was booming throughout 2006 and property assessments are supposed to be based on values as of Jan. 1, 2007.
According to Stan Rutstein, a commercial agent in Brandenton, "The market was explosive in 2006, and business confidence was spectacular. It was next stop the moon. But you can't compare what was going on then to what is going on now."
"Rents are under pressure," Rutstein added. "People are in shock over the rise in common area maintenance costs and insurance. The business climate is relatively weak, and people seem to have lost confidence. Just look at the stock market."
Vanessa Arellano Doctor
http://sarasota-realestate.biz |
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