What You should Know About Florida’s Property Tax System
The Florida Constitution reserves all revenue from “ad valorem taxes” (taxes based on property value) for local governments, which is their largest source of funding. State government derives no revenue from property taxes. Property tax is levied as of January 1 annually based on the market value of real and tangible personal property. Property owners receive their tax bills in November and payment is due by March 31 of the following year
Local property appraisers annually assess each privately owned property in Florida based on market value. Property appraisers also administer exemptions. Local governments (taxing authorities) set the “millage rate ,“ which is the rate at which properties are taxed. After accounting for certain exemptions, differentials, and limitations, the “taxable value” is multiplied by the millage rate to determine the dollar amount of the tax.
The Formula for Determining Your Property Tax
Just Value (market value) — Assessment Limitations (e.g. Save Our Homes) = “Assessed Value”
Assessed Value — Applicable Exemptions (e.g. Homestead) = “Taxable Value”
Taxable Value X Millage Rate = Total Tax Liability
Example: Assume Homestead A has a market value of $400,000, an accumulated $100,000 in Save Our Homes protections, a Homestead Exemption of $50,000, and the millage is 5 mills:
$400,000 — $100,000 = $300.000
$300,000 — $50,000 = $250.000
$250,000 x .005 = $1.250 (Total Property Taxes)