Florida Property Taxes – a quick introduction for new owners

Understanding Property Taxes in Florida

Variable Discounts for Early Payment

• If you pay your property taxes anytime between now and the end of March, you’ll receive the following discounts:
  • November: 4% discount
  • December: 3% discount
  • January: 2% discount
  • February: 1% discount
  • March: no discount

How Property Taxes Work

1. Payment in Arrears: Property taxes are paid in arrears. This means that the TRIM (TRuth In Millage) notice you received in late August and the recent property tax bill are for the current year that started on January 1.

2. Local Taxing Authority: Real estate property taxes are paid to the taxing authority in the area where the property is located. Why? Because the local municipality directly provides services that benefit all property owners.

3. What Property Taxes Cover:

   • Local Government Administration and Operation
   • Public Road Maintenance and Street Lighting
   • School District Staff, Administration, and Buildings
   • Water Management Districts
   • Police and Fire Departments, First Responder Services
   • Trash and Recycling Pickup
   • Other Costs of Public Infrastructure Maintenance

4. Ad Valorem Calculation:

   • Most property tax line items are ad valorem, which means they’re calculated based on the current value of the property.
   • Higher-valued properties pay more in taxes, while lower-valued properties pay less.
   • The Assessed Value of the property (minus any exemptions) is multiplied by a millage rate to determine the annual property tax due.

   Formula: Assessed Value (less exemptions) × Millage Rate = Annual Property Tax Due

5. Annual Adjustments:

   • The County’s Property Appraiser’s Office re-establishes Assessed Values each year based on recent sale prices and local market factors.
   • Assessed values are adjusted annually to reflect neighborhood and community sales trends and individual property specifics.

6. Tax Bills: Note that the County Appraiser’s office does not send out tax bills directly.

Remember, understanding property taxes helps you manage your real estate responsibilities effectively!