Property Taxes
An overview of Property Taxes and the Role of the County Property Appraiser
Florida Statutes require that your real property value is reflected in your annual TRIM notice and gives you notice and represents the property status and value as January 1, of the year in which you receive the notice. Also reflected in this value are the increases in value based on substantial Real Estate market activity that occurred throughout the state in 2005.
If you have additional questions regarding your Proposed Tax Notice, each county has information on their Property Appraiser’s website.
What does a Property Appraiser Do?
Your Property Appraiser is tasked with the responsibility to identify, locate and fairly value all property within your county for tax purposes as required by the Florida Constitution. The Property Appraiser does not set “tax rates”, that is a function of the Taxing Authorities.
What is the Purpose of Property Tax?
Property taxes are designed to pay for and provide essential services including police and fire protection, streets and drainage construction, maintenance, libraries, streetlights, parks and recreation, and environmental regulation. Across the state the various Taxing Authorities calculate and set the annual tax rate (millage rate) in order to pay for services include within their budgets.
The word “millage” means “part per thousands” and one mil equals one dollar tax for every $1,000 of Taxable Value.
Is the Proposed Property Tax Notice (TRIM) a Bill?
No. The TRIM notice is not a bill but rather provides you with proposed tax rates from your Taxing Authorities including data on upcoming budget hearings, contact and deadline information. These notices are sent out in advance of these meetings in order to give tax payers the opportunity to appeal the proposed assessed value of their properties.
What does Market Value Mean?
Market Value is the number assigned by your Property Appraiser’s sales analysis of what a buyer may pay for your property, minus sales costs. Property is annually assessed as of January 1st. The value listed is a reflection of the past year’s real estate transactions. This 1 year delay is why you generally think the Market Value is lower that what you could sell it for today.
How is My Market Value Determined?
By law, your county Property Appraiser is required to accurately determine the Fair Market Value, or Just Value, of all properties in their jurisdiction. They review the value of the land, the building and tangible personal property that might be used in business activities. To accurately meet this objective accepted appraisal practices governed by Florida Law and Uniformed Standards of Professional Appraisal Practices are utilized. On site inspections and statistical computer modeling are used to determine value. Your Property Appraiser will also consider the following in their value determination:
- Recent comparable sales of similar properties
- Cost for replacing your property and depreciation consideration
- Costs for operating and maintaining a commercial property
- Rental income, if applicable
What is My Taxable Value?
This is the value reported to the Taxing Authorities by the county Property Appraiser and is the property’s Assessed Value that is used to calculate your ad valorem taxes.
How do Homestead Exemptions affect homeowners?
If homeowners apply for and are deemed eligible for a Homestead Exemption then the taxable value of that home is reduced. A Homestead Exemption reduces the taxable value of your primary residence by $25,000 which provides a yearly savings of about $500. Also the Homestead Exemption qualifies the property for the benefits associated with the Florida “Save Our Homes” legislation.
My neighbor’s home is similar to mine – but my taxes are so much higher! Why?
Adopted by Florida voters in 1992, the “Save Our Homes” initiative was intended to prevent homeowners from being taxed out of their homes due to rapidly rising real estate values across the state. “Save Our Homes” can cause disparity and confusion between the values of home right next door to each other since the program favors long time residents. The “Save Our Homes” program places limits on the increases in assessed valued of homestead properties in Florida to no more than 3% annually no matter how much the actual market value changes during that period. However, new construction and home additions are not subject to the 3% “cap”. The “cap” is not transferable to another property and is only for homestead properties.
It is important to be aware that changes in title, new construction or home additions may affect the “3% cap” so it is always wise to contact your local Property Appraiser’s office to gain more specific information about your options.
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