Chapter 18 Flashcards
What are property taxes used for?
To provide services such as law enforcement, fire protection, roads, and schools
What are the 3 primary taxing districts in Florida?
City, County, and school board
How are tax rates expressed in FL?
mills, or millage rates
Divide # of mills by 1000
What is the statutory limit for local government tax rates in Florida?
maximum of 10 mills for each taxing authority (the 10 Mill Cap)
What is the Latin word that refers to property taxes?
Ad Valorem taxes, which means “according to value”
How are ad valorem taxes determined? (property taxes)
Each property is taxed based on its value determined by a county property appraiser
What is an assessed value?
Value determined by the county property appraiser for ad valorem taxes
What is an exemption?
Amount allowed by law that reduces the amount that would otherwise be taxed
What is taxable value?
Amount remaining after subtracting the exemptions from the assessed value
How is the tax levy determined?
Taxable value multiplied by the applicable millage
What is True Rate in Millage notice?
Notification by mail to FL property owners showing their home’s assessed value, the prior year tax paid, and the proposed taxed with and without budget changes
What are the 3 steps for protesting a tax assessment?
Homeowner only escalates to the following step if the previous one fails
Meet with the county appraiser
Request a hearing with the Value adjustment board
File an appeal with the District of Court appeals
What is a Tax Levy?
The actual amount of tax the property owner has to pay
When are property taxes due and payable?
Property taxes are assessed from Jan 1 to Dec 31. They are due by March 31st of the following year
How much of a discount do you receive for paying your taxes early?
4% if paid in November
3% if pain in December
2% if paid in January
1% if paid in February
When do property taxes become delinquent?
April 1st
What is a possible consequence for failure to pay the property tax bill?
Foreclosure. In May, delinquent tax bills are advertised for purchase at a tax certificate sale, resulting in a lien on the property
What are the steps in the tax certificate sale process?
Advertisement and public auction
Investor bidding starts at 18% interest and sells to the lowest bidder
What are the requirements for the property owner to redeem the tax certificate and retain ownership?
Within 2 years, the property owner can pay the amount of the tax certificate plus interest at the rate sold from the month of sale to redemption
What happens if a property owner does not redeem the tax certificate within 2 years?
The certificate holder can apply for the tax deed, which triggers a public sale of the property at auction
What is the time limit by which a tax certificate holder can apply for a tax deed?
7 years
What are the 4 possible situations for property owners with respect to tax exemptions and limitations?
Pay the full tax levy
Pay reduced tax levy (partially exempt)
Pay none of the levy (fully exempt)
Immune from paying taxes (not assessed)
Which properties are fully exempt from paying the property tax levy?
Churches
non-profit organizations
Disabled people
Which properties are immune from paying a property tax levy?
Property owned by local, state, and federal governments
What are greenbelt laws?
Legislation that provides farmers with favorable tax treatment, limiting property assessment increases, if their property is used for agricultural purpose
Who is eligible for homestead tax exemption in FL?
Individuals who own and reside on real property as their primary residence on or before January 1st
What are the filing deadlines for FL homestead tax exemption?
Prior to March 1st of the tax year, if done after, it will be applies to the following tax year
What is the maximum homestead tax exemption amount?
$50,000 of the assessed value, separated into 2 exemptions
What is the amount of the basic (first) homestead tax exemption?
$25,000 for a property with an assessed value up to $50,000
What is the amount for the second homestead tax exemption?
up to $25,000 for a property with an assessed value greater than $50,000. Amount is reduced from the amount above $50,000.
For which taxing authorities does the basic homestead tax exemption apply?
All 3, city, county, and school
For which taxing authorities does the second homestead tax exemption apply?
City and county
Not school
What are additional property tax exemptions given to qualified individuals?
Widower - $500
Blind Person - $500
Veterans with 10% service-related disability - $5,000
What assessment limitation does the Save Our Homes Act provide for homestead properties?
Places a limit on the percentage increase in assessed value a property can have to the lesser of 3% or the percent change in the CPI
What is a special assessment?
Tax levy imposed by governmental bodies to pay for specific improvements that add value to a property, like new sidewalks, addition of public water or sewer
What are the methods of allocating the special assessment cost of improvements among all the property owners benefitting from the improvement?
Pro rata share
Front-foot basis
What is the pro rata share method of allocating the special assessment tax levy?
Divide the cost equally among the property owners benefitting from the improvement
What is the front-foot method of allocating the special assessment tax levy?
The cost is allocated among the property owners based on the number of feet the owner has along the street. Across the street neighbors split costs in half
