AD VALOREM PROPERTY TAXES:
WHAT THE DIFFERENT PROPERTY VALUES IN OUR RECORDS MEAN TO YOU!
Property taxes are determined by multiplying the property's taxable value by the millage rate set each year by the taxing authorities.
Formula: Just/Market Value, Capped by the Save Our Homes Cap = Assessed Value
Assessed Value - Exemptions = Taxable Value
Taxable Value x Millage Rate / 1,000 = Gross taxes
Under Florida law, the status of a property on January 1 is the criteria for establishing value for the entire year. Each year's value stands alone and is based on market information including sales of comparable property from prior years. Value is a reflection of the market. When sale prices decline, so do values, and conversely when sale prices increase, so do values.
There are THREE values used in the ad valorem process:
JUST/MARKET VALUE: The first value established each year is the JUST/MARKET VALUE, based on market information including sales. Two truly identical properties would have the same Just/Market value.
ASSESSED VALUE: The second value, the ASSESSED VALUE, is the value that has been capped by an assessment cap, such as the Save Our Homes Cap* or the 10% assessment cap on non-homestead parcels. The Save Our Homes Cap, which was voted into law effective January 1, 1995, limits annual increases in assessed value of property with homestead exemption to 3 percent, or the Consumer Price Index, whichever is lower. On a property with no homestead exemption, the Just/Market and assessed values are the same.
TAXABLE VALUE: Finally, any exemptions (like the $50,000 homestead exemption) are subtracted from the assessed value to reach the third value, the TAXABLE VALUE. The annual millage rate set by the taxing authorities is multiplied by the taxable value to reach the annual gross tax amount.
*Because of the Save Our Homes Cap, it is not possible to compare taxes or assessed values with your neighbors. For example, if one of your neighbors has homestead exemption and has had the Cap for several years, then his or her assessed value- and thus, taxes - could be lower than yours, even if the market value of your neighbor's property is identical to or higher than yours.
If you would like to discuss the millage rates or the way taxes are used, please contact the taxing authorities directly.
If you have any questions, please call our information desk at 727-464-3207.
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