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Future Phases, Present Problems: How Florida Taxes Entitled Land
So, you own land, you’ve crafted a vision, maybe even worked through the entitlement process. But your property is still dirt—and your tax bill is sky-high. Welcome to the strange reality of owning land in Florida. There are many factors to consider when valuing vacant land, among them are the underlying zoning and approvals or entitlements that run with the land.
Many counties treat approved entitlements as value multipliers, even if construction hasn’t begun. And while that may make sense for a buyer or investor, it often creates misaligned assessments that punish long-term owners with premature tax obligations.
What’s Driving This Disconnect?
- Speculative valuations assume max future use
- Assessments reflect entitlement costs but ignore holding and absorption periods
- Inaccurate or improper highest and best use analyses
- Misaligned timing of approvals and valuation of the land for property tax purposes
The Risk to Developers
An entitled parcel valued at its “potential highest and best use” rather than current state can result in:
- Inflated annual tax liabilities
- Pressure to develop faster than market demand warrants
- Disincentivized land banking
Your Land Deserves a Realistic View
Entitlements are valuable—but so are market conditions, construction timelines, and capital constraints. Your tax burden should reflect both your progress and your risk. The value should also reflect the market demand and market value, and proper selection of comparable sales in the valuation is key.
How FirstPointe Can Help
We advocate for the proper consideration of entitlements, comparable sales and highest and best use of the land in question. Our team works to:
- Ensure the valuation reflects the condition of the property as of January 1 of the tax year.
- Properly considers the true highest and best use of the land as of the valuation date.
- Select the proper comparable sales to value the property and make necessary adjustments to reflect the condition and development potential of the property as of the date of value.
Your land’s future is promising. Let’s not let today’s tax bill undermine it.
Contact us for today for help on your property tax needs!
954.546.9630
6301 NW 5th Way
Suite 2800
Fort Lauderdale,
FL 33309
