Starting with the 2016/17 tax roll, commercial property owners (class 4) who have a real estate tax review proceeding pending, will see a portion of their real property tax bills reflect a charge for taxes (most commonly based on 90% of their assessed value times the tax rate) and the balance of the assessed value times the same tax rate designated for the DAF fund. The fund will be used to pay refunds on successful tax appeals, which will hopefully shorten the current lengthy refund process.
All commercial property owners will pay the same total charges on the same assessment if they are in identical jurisdictions, whether they file an appeal or not. The funds destined for the DAF fund are no longer available to be spent by the jurisdictions as general tax revenue. As a result, the likelihood is tax rates will increase.