Its that time of year again. Your Florida Property Tax Bill will be mailed on November 1st. Here's what its all about.
Florida Property Taxes
There are three types of property taxes levied in Florida: Ad Valorem Taxes, Non-Ad Valorem Assessments, and Tangible Personal Property Taxes. A property appraiser in each county determines the value of every property parcel including those inside incorporated city limits, inside special districts, and those outside of city limits in the unincorporated areas.
What are Ad Valorem Taxes?
Ad valorem property taxes are levied by School Boards, Board of CountyCommissioners, Library Districts, Water Management Districts, and City Commissions. In some counties the Board of County Commissioners also levies a MSTU (Municipal Service Taxing Unit) tax that is used to pay for city-like services delivered to the unincorporated areas.
The taxing authorities use the property appraiser's value to determine who will pay what part of the taxes they levy. If you have questions about your taxes and how they are spent, you should call the taxing authorities at the phone numbers listed on the TRIM (Truth In Millage) notice or attend their meetings and budget hearings. You will receive the TRIM notice each year in August.
What are Non-Ad Valorem Assessments?
Non-ad valorem assessments are fees levied against property by the Board of County Commissioners to pay for a particular service. The fees are expressed in a dollar amount instead of a millage rate. They are directly related to the service provided and the money is not used for any other purpose. In some counties the non-ad valorem assessments pay for refuse collection and landfill operations, rural trash collection centers, and special road paving projects. These fees are based upon equivalent residential units.
What are Tangible Personal Property Taxes?
Tangible personal property such as furnishings located in rental property, attachments to mobile homes on rented lots, and furnishings, fixtures and equipment used for a business purpose are subject to taxation. This type of property must be reported each year on the Tangible Tax Return available from your county's property appraiser's office. The filing deadline is April 1st of each year.
How Are Property Values (Market Values) Determined?
The property appraiser is charged by the Florida Constitution and statutes with appraising all property in AlachuaCounty at 100% of market value as of January 1 every year. This means that Florida is on an annual reappraisal cycle so your property value can change each and every year.
Market value is determined by analyzing the sales of similar properties, the cost to reproduce your property and the ability of your property to earn income. Some counties use a computer assisted mass appraisal (CAMA) system. The CAMA system incorporates our conclusions from these three analyses and then applies these decisions to all properties equally. However, most counties use a comparative value system in which the best evidence of your market value is the sale, prior to January 1, of several properties similar to your property.
What is "Save Our Homes" Amendment 10?
In November, 1992, voters approved Amendment 10 to the Florida Constitution which limits the size of the annual increase in the assessed values of owner occupied residential properties which have homestead status. Under Amendment 10, increases in the annual assessment of homestead residential property shall not exceed the lower of either three percent (3%) of the assessment of the prior year or the percent increase in the Consumer Price Index for all urban consumers in the U.S.
Amendment 10 does NOT apply to new construction or improvements to existing properties in the year following the year the changes were completed. However, in subsequent years, the cap provided by Amendment 10 will be in effect for both the property and the changes.
Taxable Value Changes With a New Owner Because of "Save Our Homes".
When a property sells, the process begins again from the new property value based on the new sales price. Therefore the taxes paid by you after purchasing your home in almost all cases won't be the same as the taxes paid by the previous owner. Part of the previous owner's taxable value was deferred each year in the past and that is recaptured with the new purchase price. Your taxable value will be deferred in the future.
What are Exemptions?
There are several types of exemptions concerning property with the Homestead Exemption being the most prevalent. See Homestead Exemption.
Important Dates to Remember
January 1 - The status and condition of your property on January 1 determines the property's value
for the tax year. Also, January 1 is the date that determines residency or ownership
requirements to qualify for exemptions.
March 1 - Filing deadline for all exemption requests including homestead and all classified use,
including agricultural classification.
April 1 - Deadline for filing tangible personal property tax return.
Mid August - Notice of Proposed Property Taxes or Truth in Millage, or TRIM, notices are mailed to property owners. This begins the appeal process and contains notification of deadlines.
November 1 - Tax bills are mailed.
Mark Cohen, Broker
www.EyemarkRealty.com