Article Contents
Living in the Sunshine State has a lot of appeal for many prospective first-time home buyers. However, before you rush out and buy that perfect piece of property, you should understand all of the costs associated with home ownership, and that includes property tax in Florida. Like it or not, property taxes are just one of many aspects that you will have to deal with in owning a home, but one that many tend to ignore. Here are some of the key points that you need to be aware of as familiarizing yourself with these points can help you make informed decisions and take advantage of available benefits.
Understanding the Basics of Property Tax in Florida
Property taxes in Florida are calculated based on two main components:
Assessed Value:
This is the value assigned to your property by the county property appraiser. It is generally based on the market value as of January 1st of each year.
Millage Rate:
This rate is determined by local taxing authorities, such as counties, municipalities, school boards, and special districts. One mill equals $1 of tax per $1,000 of assessed value.
Property tax bills are mailed in November and are due by March 31st of the following year. Florida does offer between 1% - 4% discounts for early payment.
Exemptions Available for Homeowners
If you own and occupy your Florida property as your primary residence as of January 1st, you may qualify for a homestead exemption, which can reduce the taxable value of your home. You must file for it at the County Property Appraiser’s office. The Save Our Homes (SOH) cap limits the annual increase in the assessed value of a homesteaded property to 3% or the percentage change in the Consumer Price Index (CPI), whichever is lower. This cap helps prevent significant increases in property taxes due to rising property values, so most people who have lived in their homes for a long time are paying taxes on way less than their homes are worth.
Florida also allows homeowners to transfer their SOH benefit to a new homesteaded property within the state. This portability can significantly reduce property taxes on a new home. You must apply for portability within two years of selling your previous homesteaded property.
Homestead Exemptions Can Offer Significant Savings
Homestead provides a basic exemption of up to $50,000, applied to the first $50,000 of the property's assessed value. The first $25,000 applies to all property taxes, including school district taxes. The additional $25,000 applies to non-school taxes.
Other homestead exemptions and benefits include those for low-income seniors, as well as for disabled individuals and veterans, and surviving spouses of first responders who died in the line of duty, etc.
Local Tax Rates Can Vary
Local property tax rates in Florida can vary significantly based on several factors, including the specific county, municipality, school district, and special districts in which the property is located. Each of Florida's 67 counties sets its own property tax rates. These rates are determined by the county commission and are used to fund county-level services such as law enforcement, libraries, public health, and infrastructure maintenance. Some counties might have higher rates due to higher service demands or larger budgets.
If your property is located within a city or town, you may also pay municipal property taxes. These taxes fund city-level services, including police and fire departments, parks and recreation, public works, and other local government functions. Different municipalities have different tax rates based on their budgetary needs and priorities. School district taxes are also a significant component of property tax bills here in Florida. Each school district sets its own millage rate to fund public education, including teacher salaries, school maintenance, and educational programs. School district tax rates can vary widely depending on the district's financial needs and state funding levels.
Special districts are created to fund specific services or infrastructure projects, such as water management, fire control, or community development. These districts have the authority to levy additional property taxes, and the rates can vary based on the specific needs and budgets of each district.
What Happens if I Disagree with My Property Tax Assessment?
If you believe your property's assessed value is higher than the market value of your property, there are factual errors in the assessment, or your property was assessed unfairly compared to similar properties, you can appeal to the county property appraiser’s office. The appeal process typically involves providing evidence, such as recent sales of comparable properties, to support your case.
Appealing your property tax assessment can be a complex process, but it is your right as a property owner. Thorough preparation and understanding of the process can increase your chances of a successful appeal. For detailed guidance and forms, contact your local county property appraiser’s office or visit their website.
I Can Help!
If you are a homeowner burdened by skyrocketing property taxes and are looking to appeal your assessment, please contact my office first. As a 5th generation Floridian, I have been practicing law in Florida for over 30 years. I can help you gather the necessary supporting evidence, contact your county property appraiser and if necessary, file a formal appeal, and prepare for the hearing. I always work for you to secure the best possible result.
