Notes

Exempt Property
owner may be relieved of some or all of the obligation to pay ad valorem taxes All properties used for municipal purposes are considered exempt. According to Florida law, any property used for non-profit "charitable, religious, scientific, or literary purpose" will also be exempt to the extent that they are used for these purposes.
ex: historic sites, hospitals, and nursing homes. Historic sites may be given a 50% ad valorem tax exemption provided that they meet all the criteria set out in the Florida statutes. Some non-profit hospitals and nursing homes may be exempt based on providing charitable service, but if they lease out parts of the property for parking lots or garages run by private businesses, this portion of the property will not be exempt.

Homestead Exemption
One of the most common examples of partial exemption is the Homestead exemption, which serves to offer tax relief to homeowners. Property owners who are Florida residents that use and hold title to their homes as a permanent residence are entitled to this relief. In Florida, homeowners are entitled to a $25,000 homestead exemption from the assessed value of the home for city, county, and school board taxes. They can also get an additional homestead exemption from city and county taxes but not school board taxes if their property is assessed between $50,000 and $75,000. If their home is assessed over $75,000, they get the whole $25,000 additional exemption.

Application for Homestead Exemption
Homeowners who are applying for a homestead exemption for the first time must send in their application before March 1 in many counties for the exemption to take effect that year. If the application is filed after this date, the exemption will still take effect, but not until the following year. To apply for the exemption, property owners must have title and reside on the premises before January 1. The first application for exemption must be made in person at the county property appraiser's office.

Additional Exemptions
In addition to the initial $25,000 homestead exemption, there are additional ad valorem tax exemptions that homeowners can apply for if they meet the criteria established by Florida law. These additional exemptions are as follows:

$500 Surviving spouse exemption—Widows or widowers are eligible for this exemption provided that the person applying for this exemption is a Florida resident, has not remarried and was not divorced before the spouse's death.
$500 Disability exemption—This exemption may be claimed by anyone who is totally and permanently disabled and a current Florida resident.
$500 Blind person exemption—Any person who presents a certificate of blindness issued by an approved government agency (ex. Division of Blind Services of the Department of Education) and is a current Florida resident may apply for this exemption.
$5,000 Disability exemption for ex-military service member—Any property owned by an ex-service member who has sustained at least a 10% disability while serving is eligible for this exemption.

Total exemption for permanently disabled ex-military service member—Any veteran who sustained a total and permanent disability while serving is eligible. This eligibility applies for all of a property owned by the service member that is currently being used as a homestead. This exemption may also carry over to the surviving spouse of the disabled service member. Remember that property owned by such individuals being used for commercial purposes will not be exempt.

Additional Exemptions
Total exemption for certain permanently disabled Florida residents—Quadriplegics who own and use their property for homestead purposes are totally exempt from ad valorem taxes on that property. In addition, wheelchair-bound or blind residents who are permanently and totally disabled may be totally exempt from ad valorem taxes on their homesteads provided that their gross income doesn't exceed $27,732 as of 2015 (This has been and continues to be adjusted annually since January 1, 1991.) In both cases, it's important to remember that any property owned by such individuals used for commercial purposes will not be exempt.

$50,000 Additional homestead exemption for residents 65 or older—Counties or municipalities have the option of offering this exemption to homestead owners over the age of 65 provided that their gross annual income does not exceed $28,448 (also, annually adjusted since January 1, 2001). Such an exemption is not mandatory and will only be executed by county or municipal ordinance.

Additional Exemptions
An exemption not exceeding $50,000 to any person who has the legal or equitable title to real estate, maintains permanent residence on the property, is 65 or older, and whose household income does not exceed the household income limitation.

An exemption equal to the assessed value of the property to an owner who has title to real estate in Florida with a just value less than $250,000, has maintained permanent residence on the property for at least 25 years, is 65 or older and whose household income does not exceed the household income limitation.

Greenbelt Law
The Florida Greenbelt Law allows property appraisers to assess land that is classified as agricultural property to be appraised according to the current use (also known as value in use), and not the highest and best use. This means that the assessed value will be lower and, therefore, so will the annual tax bill.

Florida passed the Green Belt Law to protect farmers from higher taxes associated with urban expansion. Because farming land will not be assessed according to the highest and best use, it will not be assessed as if it were, for example, used for commercial purposes. Such an assessment might make farming in the area too expensive, so the law makes an exception for agricultural land.

County property appraisers classify each property every year to prevent abuse of the law. Owners who want their land to be classified as agricultural property must submit a request before March 1 of every year. The protest procedure is the same as for normal assessments.

Save Our Homes Amendment
Also known as amendment 10, Save Our Homes amendment of Florida caps how much the assessed value of a homestead exempted property may increase. It is not to exceed 3% of the previous tax year or the Consumer Price Index (CPI) for the previous year, whichever is less.

The Save Our Home benefit is portable. The benefit is the difference between the assessed value and the market value of the property. If the property owner is moving to a more expensive area, the owner may transfer up to the maximum limit of $500,000 to the new home. If the property owner is moving to a less expensive home, the owner can transfer a portion of the benefit to the new home.

Tax Rate Calculation Overview
When a taxing district creates its budget for a fiscal year, it must determine the total expected expenses needed, as well as the expected revenues (based upon previous years) from sources like revenue sharing, fees, and municipal utility revenues. The difference between total expenses and total revenues is equal to the amount of money that the district must raise in the form of real estate taxes. Therefore, if a district expects to raise $1 million in revenues and expects to spend $10 million in a given year, then the district must raise $9 million in real estate taxes.

Next, the district examines the tax roll prepared by the county appraisal office to determine the total taxable value of all of the real property within the district. The district then divides the amount of money needed from property taxes for the budget by the total taxable value to arrive at the tax rate, or millage rate.

Example & Question
A district's fiscal budget indicates that expected expenses are $15 million, and expected revenues from fees and other sources total $5 million.

If the total taxable value of real estate in the district is $500 million, what will the real estate tax rate be?

Response
The total amount that needs to be raised is:

$15 million - $5 million = $10 million
Now, the tax rate will be the ratio of needed funds to total taxable value:

10 million / $500 million = .02
To convert this figure to mills, instead of multiplying by 100 to get a percentage, we multiply by 1000. So the tax rate would be 20 mills, or $20 for every $1000.

Calculating Taxable Value
It is important to distinguish taxable value from assessed value because all tax rates are determined using the taxable value. The assessed value of a property is the just value determined by the county appraiser. The taxable value is the assessed value less any exemptions or:
Taxable Value = Assessed Value - Cumulative Exemptions
The assessed tax roll that the Tax Authority is issued will list the assessed value of all properties as well as any exemptions those properties are entitled to. From this, the taxable value can be derived.

Example & Question
Owner A is 80 years old and lives in a county that offers a $25,000 property tax exemption for persons over age 65. He is a widower and is legally blind.

If his property is assessed at $100,000, what is the taxable value of the property after exemptions are taken into account?

Response
Owner A will claim a base homestead exemption of $25,000, and an additional $25,000 exemption because the home is assessed over $75,000, and an exemption for persons over age 65 of $25,000, a $500 exemption for being a widower and an additional $500 exemption for being legally blind. Thus we have the following calculation:

Cumulative Exemptions = $25,000 + $25,000 + $25,000 + $500 + $500 = $76,000
Now, we can plug this figure into the following formula to determine the taxable value of Owner A's property:

$100,000 (assessed value) - $76,000 (cumulative exemptions) = $24,000 (taxable value)

Tax Bill Calculation
The millage rate will be applied uniformly across the tax area. Remember that there are several taxing authorities for each area, and the millage rates will be different for each. To determine the taxes due for a piece of property, all of the millage rates for each taxing authority in that property's tax area must be added together. Then the total millage rate will be multiplied by the property's taxable value to arrive at the total taxes due.

Formula: Assessed value - homestead exemptions = taxable value

A homesteaded condo has an assessed value of $45,000.

What is the amount of the homestead exemption?

What is the amount of the taxable value?

Response
Since the assessed value of the property is less than $50,000, the homestead exemption is only $25,000.

$45,000 assessed value - $25,000 homestead exemption = $20,000 taxable value

Example & Question
A duplex that is homesteaded has an assessed value of $64,000.

What is the homestead exemption and what is the taxable value?

The owner would get the base $25,000 plus a portion of the additional homestead exemption calculated as follows:

$64,000 assessed value - $50,000 = $14,000 additional exemption
Note: You always subtract $50,000 from the assessed value if the property is assessed less than $75,000 but more than $50,000.

$25,000 base exemption + $14,000 additional exemption = $39,000 total homestead exemption

$64,000 assessed value - $39,000 allowable homestead exemption = $25,000 taxable value
Note: Whenever you are calculating taxable value for a property assessed between $50,000 and $75,000 the taxable value will always be $25,000.

Example & Questions
Mr. Henrico owns a single family home that has qualified for homestead exemption and the home is assessed for $300,000.

What is the amount of the homestead exemption for this home?

What is the taxable value of the property for calculating school taxes?

What is the taxable value of the property for calculating city and county taxes?

Response
Since the home is assessed over $75,000, the owner will qualify for the base $25,000 as well as the additional $25,000 homestead exemption for a total of $50,000.

For calculating school taxes, only the base $25,000 exemption is exempt from school taxes.

$300,000 assessed value - $25,000 base homestead exemption = $275,000 taxable value for school taxes only
The taxable value for city and county taxes would use the entire homestead exemption: $25,000 base plus $25,000 additional for a total of $50,000.

$300,000 assessed value - $50,000 homestead exemption = $250,000 taxable value for city and county taxes


Tax Bill Calculation
These examples are very simplistic. Now let's consider more complex scenarios, where we consider the tax rates of multiple authorities in a single district. Taxes from special taxing districts are not often over 3 mill. As this module discussed earlier, homeowners may claim multiple exemptions from ad valorem taxes. These combined factors make calculations slightly more intricate.

Example & Questions
Mrs . Brevard's homesteaded single-family residence has an assessed value of $275,000. The millage rate for the school district is 5 mills, city 8.2 mills, and county 9.1 mills.
How much is owed for school district taxes?
How much is owed for city and county taxes?
What is the total property tax bill for this property?

Response
Taxable value for calculating school district taxes applies to the base $25,000 homestead exemption. To multiply by 5 mills, convert to a decimal: 5 mills ÷ 1,000 = .005

$275,000 assessed value - $25,000 base homestead exemption = $250,000 taxable value for school taxes only
$250,000 taxable value x .005 tax rate = $1,250 school district taxes

Taxable value for city and county taxes applies to the entire $50,000 homestead exemption because the assessed value of this property exceeds $75,000.
$275,000 assessed value - $50,000 homestead exemption = $225,000 taxable value for city and county taxes
8.2 mills city + 9.1 mills county = 17.3 mills = .0173 tax rate
$225,000 taxable value x .0173 = $3,892.50 city and county taxes

Add the property tax for schools and the property taxes for city and county:
$1,250 school district taxes + $3,892.50 city and county taxes = $5,142.50 total taxes due


To calculate the savings resulting from the homestead exemption applied to school district taxes, multiply the millage rate for schools by the base homestead exemption:

$25,000 x .005 tax rate schools = $125 savings from school district taxes
To calculate the savings resulting from the homestead exemption applied to city and county taxes, multiply the millage rate for city and county by the total applicable homestead exemption:

$50,000 total homestead exemption x .0173 = $865 savings from city and county taxes
Add the property tax savings for the school district to the property tax savings for the city and the county:

$125 + $865 = $990 total savings realized


Special assessments are one-time taxes levied for public improvements. Because owners whose property is improved, as well as nearby landowners, benefit directly from these improvements, special assessments are levied specifically on these individuals.
Special assessments can be voluntary or involuntary. In some cases, a city, for example, might improve the curb in a neighborhood without seeking approval from the homeowners. In this case, a tax lien will be placed on these homeowners' land whether or not they wanted the improvement. Sometimes, however, members of a neighborhood might petition the city for a public improvement. They agree to pay for the improvement, so the special assessment is voluntary. All special assessments are statutory and specific.

Special assessments generally take effect by the following steps:
1. A legislative body may put forth a proposal for an improvement, or property owners may petition the city for an improvement.
2. The proper authority holds hearings on the improvement after the affected property owners have been notified of the proposal or petition.
3. An ordinance is passed that describes the improvement itself, the cost involved and the area affected.
4. The assessment is spread over the properties that are affected in what is called the assessment roll. This stage determines how the cost will be divided, usually according to front footage or estimated individual benefit.
5. Hearings are held to confirm the assessment roll. Community members can raise objections at this time; the proposal is then decided by a local court.
6. The special assessment becomes a lien.
7. Local authorities issue a warrant after the improvement is completed that allows a local collector to issue bills to begin collecting the special assessment.

Example & Question
You live on an unpaved street. The city is petitioned to pave the street and agrees to do so. The paving cost is $35 per foot, and the city is to pay 25% of the cost. If your lot frontage on the street is 155 feet, what will your special assessment be for street paving? Don't forget that your street has two sides and the property across the street must bear its fair share.

Response
155 front feet x $35 per foot = $5,425
$5,425 x .75 (owner's share of cost is 100% - 25%) = $4,068.75
$4,068.75 ÷ 2 (one-half of the street paving cost) = $2, 034.38