Legislative Update 2025 - Flipbook - Page 45
Education on Property Tax:
Property tax is an annual tax paid by owners of real estate and certain tangible personal
property to local governments. It’s often referred to as an ad valorem tax, meaning it is based
on the assessed value of the property. Unlike transaction-based taxes such as sales tax, or
income-based taxes like corporate tax, property tax is value-based and applies regardless of
property use. It covers all types of property—homesteaded, non-homesteaded, commercial,
agricultural, and industrial. In many cases, multiple jurisdictions may tax the same property;
for example, both a city and county can levy property taxes on a home within city limits.
Property taxes are different from special assessments, even though both may appear on
your tax bill. Special assessments are fees imposed by local governments to fund specific
projects or services, such as road improvements or drainage systems. In contrast, property
taxes—also known as ad valorem taxes—are based on the value of real and certain tangible
personal property and can only be levied by local governments.
The Florida Constitution grants counties, school districts, and municipalities the authority to
levy property taxes, subject to certain limits. Property appraisers are responsible for
determining the value of properties within a county, while tax collectors handle the billing,
collection, and distribution of those taxes.
Tax collectors are responsible for collecting and distributing property taxes within their
county.
Taxing authorities—such as counties, municipalities, and school boards—adopt budgets and
set the millage rates needed to fund those budgets. The Florida Department of Revenue
oversees the statewide property tax system, offering guidance to local officials through
formal rules under Chapter 120, Florida Statutes, and reviewing and approving county tax
regulations.
"Just Value" refers to the market value of a property—the price a willing buyer would pay a
willing seller in an open market. This is not always the same as the sales price.
The Assessed Value is the property's value after applying any assessment limitations, such as
the Save Our Homes cap, agricultural classification, or a homestead exemption.
The resulting Taxable Value is then multiplied by the combined millage rates of all applicable
taxing authorities—such as the county, city, school board, and special districts (e.g., water
management or mosquito control). This calculation determines the total property tax due.
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