After weeks of rumors regarding hotel valuations in Orange County, it is now confirmed: the Orange County Property Appraiser has made it a priority to increase both the market values and assessed values of hotels for 2015. This is particularly true for “high-end” hotels, which have seen increases in their market values from 2014 to 2015 of anywhere from 30% to over 100%. Some of this is likely driven by the sales of properties such as the Hyatt Grand Cypress, the Peabody, and the Waldorf-Astoria. Even taking those sales into account, however, the increases in market value determined by the Property Appraiser are extraordinary.
These valuations have finally been posted on the Orange County Property Appraiser’s website as of last week. TRIM (Truth in Millage) notices in Orange County are expected to be mailed out on August 21, 2015. While we recommend that all property owners pay close attention to your assessed and market values, this is particularly true this year for hotel owners.
While at first blush market value may not seem like an important number when reviewing your TRIM notice, approximately half of a property owner’s taxes are driven by School Board taxes, which rely on market value (and not assessed value). A property owner has 25 days from the mailing of the TRIM notice to appeal the valuation to the Value Adjustment Board (VAB). That date in Orange County will fall around September 15, 2015.