Frequently Asked Questions About Florida Property Taxes

Fred Mullins, Donna Mullins, & Erin Biby

Coldwell Banker Schmitt Real Estate Company

1201 White Street Ste. 101 Key West, FL 33040

Direct: 305-745-9440

Email: mullinsf@bellsouth.net

Website: www.lowerkeys-homes.com

The new budget year begins October 1^st, which mean cities will adopt tax rates and spending plans for the coming year. People who have owned a home before are familiar with property taxes, newcomers to Florida may be a little confused by our unique tax system. 

Here are a few questions commonly asked:

Q: To whom do I pay property taxes?

A: The Big Three taxing agencies are your county, your school board and your city or town. Smaller amounts go to agencies such as the Miami-Dade Children’s Trust, the South Florida Water Management District, or the hospital districts in Broward County.

Q: What is a "TRIM" Notice?

A: That’s the letter you receive from the county appraiser every August informing you of current and proposed tax rates, the assessed and taxable value of your home, and your tax bill if the proposed rates are approved. It is not a bill. “TRIM” stands for “Truth in Millage,” which was an Act of the Legislature, originally passed in 1980.

Q: What is “millage”?

A: It’s a property tax rate. A “mill” is $1 in tax for every $1,000 in taxable real estate value, or 0.1 percent.

Q: Is there a state limit on tax rates?

A: The maximum tax rate for a municipality in Florida is $10 per $1,000 in taxable property value, or 1 percent.

Q: How is my property-tax bill calculated?

A: You can multiply the tax rate by your taxable home value. For example, if your taxable home value is $100,000 and the tax rate for your city is $5 per $1,000 (or 0.5 percent), then your tax bill is $500. You would then have to repeat this procedure for your county, school board, etc.

Q: What is a “homestead exemption”?

A: Owner-occupied homes in Florida receive a $50,000 exemption from tax for all purposes except schools. For school-tax purposes, the exemption is $25,000. In other words, you can subtract these amounts from your home’s assessed value before calculating your tax bill. The exemption is not available to commercial property such as office buildings or shopping centers, or to vacation homes or rental property.

Information obtained from: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=297410