Chapter 18

Question 1

What are property taxes used for?

Answer 1

To provide services such as law enforcement, fire protection, roads, and schools

Question 2

What are the 3 primary taxing districts in Florida?

Answer 2

City, County, and school board

Question 3

How are tax rates expressed in FL?

Answer 3

mills, or millage rates
Divide # of mills by 1000

Question 4

What is the statutory limit for local government tax rates in Florida?

Answer 4

maximum of 10 mills for each taxing authority (the 10 Mill Cap)

Question 5

What is the Latin word that refers to property taxes?

Answer 5

Ad Valorem taxes, which means “according to value”

Question 6

How are ad valorem taxes determined? (property taxes)

Answer 6

Each property is taxed based on its value determined by a county property appraiser

Question 7

What is an assessed value?

Answer 7

Value determined by the county property appraiser for ad valorem taxes

Question 8

What is an exemption?

Answer 8

Amount allowed by law that reduces the amount that would otherwise be taxed

Question 9

What is taxable value?

Answer 9

Amount remaining after subtracting the exemptions from the assessed value

Question 10

How is the tax levy determined?

Answer 10

Taxable value multiplied by the applicable millage

Question 11

What is True Rate in Millage notice?

Answer 11

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

Question 12

What are the 3 steps for protesting a tax assessment?
Homeowner only escalates to the following step if the previous one fails

Answer 12

Meet with the county appraiser
Request a hearing with the Value adjustment board
File an appeal with the District of Court appeals

Question 13

What is a Tax Levy?

Answer 13

The actual amount of tax the property owner has to pay

Question 14

When are property taxes due and payable?

Answer 14

Property taxes are assessed from Jan 1 to Dec 31. They are due by March 31st of the following year

Question 15

How much of a discount do you receive for paying your taxes early?

Answer 15

4% if paid in November
3% if pain in December
2% if paid in January
1% if paid in February

Question 16

When do property taxes become delinquent?

Answer 16

April 1st

Question 17

What is a possible consequence for failure to pay the property tax bill?

Answer 17

Foreclosure. In May, delinquent tax bills are advertised for purchase at a tax certificate sale, resulting in a lien on the property

Question 18

What are the steps in the tax certificate sale process?

Answer 18

Advertisement and public auction
Investor bidding starts at 18% interest and sells to the lowest bidder

Question 19

What are the requirements for the property owner to redeem the tax certificate and retain ownership?

Answer 19

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

Question 20

What happens if a property owner does not redeem the tax certificate within 2 years?

Answer 20

The certificate holder can apply for the tax deed, which triggers a public sale of the property at auction

Question 21

What is the time limit by which a tax certificate holder can apply for a tax deed?

Answer 21

7 years

Question 22

What are the 4 possible situations for property owners with respect to tax exemptions and limitations?

Answer 22

Pay the full tax levy
Pay reduced tax levy (partially exempt)
Pay none of the levy (fully exempt)
Immune from paying taxes (not assessed)

Question 23

Which properties are fully exempt from paying the property tax levy?

Answer 23

Churches
non-profit organizations
Disabled people

Question 24

Which properties are immune from paying a property tax levy?

Answer 24

Property owned by local, state, and federal governments

Question 25

What are greenbelt laws?

Answer 25

Legislation that provides farmers with favorable tax treatment, limiting property assessment increases, if their property is used for agricultural purpose

Question 26

Who is eligible for homestead tax exemption in FL?

Answer 26

Individuals who own and reside on real property as their primary residence on or before January 1st

Question 27

What are the filing deadlines for FL homestead tax exemption?

Answer 27

Prior to March 1st of the tax year, if done after, it will be applies to the following tax year

Question 28

What is the maximum homestead tax exemption amount?

Answer 28

$50,000 of the assessed value, separated into 2 exemptions

Question 29

What is the amount of the basic (first) homestead tax exemption?

Answer 29

$25,000 for a property with an assessed value up to $50,000

Question 30

What is the amount for the second homestead tax exemption?

Answer 30

up to $25,000 for a property with an assessed value greater than $50,000. Amount is reduced from the amount above $50,000.

Question 31

For which taxing authorities does the basic homestead tax exemption apply?

Answer 31

All 3, city, county, and school

Question 32

For which taxing authorities does the second homestead tax exemption apply?

Answer 32

City and county
Not school

Question 33

What are additional property tax exemptions given to qualified individuals?

Answer 33

Widower - $500
Blind Person - $500
Veterans with 10% service-related disability - $5,000

Question 34

What assessment limitation does the Save Our Homes Act provide for homestead properties?

Answer 34

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

Question 35

What is a special assessment?

Answer 35

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

Question 36

What are the methods of allocating the special assessment cost of improvements among all the property owners benefitting from the improvement?

Answer 36

Pro rata share
Front-foot basis

Question 37

What is the pro rata share method of allocating the special assessment tax levy?

Answer 37

Divide the cost equally among the property owners benefitting from the improvement

Question 38

What is the front-foot method of allocating the special assessment tax levy?

Answer 38

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