We’re proud to share that the Florida Bar Journal has published an insightful, thought‑provoking article authored by our very own Todd D. Jones, Kevin Herzberg, Stephen King, Rachel Fisch, and Bradley Tennant—all members of the RealAdvice team.
(click for article)
Why the article matters
This article exposes a critical—and often overlooked—disconnect: not only between federal vs. Florida state legal definitions of commercial real estate, but also between how local assessors value and tax revenue-generating properties and what state law actually permits. What may be treated as an intangible (and therefore nontaxable) under Florida statute is often mischaracterized as taxable real property—leading to inflated assessments and legal inconsistencies.
Key issues and implications
Valuation discrepancies – Most appraisers and assessors rely on federal assumptions, overstating taxable value and misaligning with state law.
State-level impact – In Florida and nearly every other state (except Mississippi), intangibles are not taxable when bundled with real estate. Misunderstanding this rule drives overassessed taxes and legal misreporting.
Significant consequences – On average, 30% of commercial property sale prices may reflect intangible value. If not separated out, this distorts assessments, burdens taxpayers, and deters transactions. For many owners, property taxes are their single largest expense.
Ripple effects for the economy – Fair, statute-aligned taxation supports smoother transactions, competitive pricing, investor confidence, and broader economic efficiency.
Why this article is timely
Who benefits most from this insight
Transaction, real estate, and bankruptcy attorneys — gain guidance and confidence on how valuation rules affect deal structuring, litigation, and tax planning.
Real estate investors — use these insights to mitigate reassessments, reduce tax burdens, and preserve profitability in commercial property investments.