Budget Department
Factors Affecting your Tax Bill
Remember, for each taxing authority: (Taxable value/1000) x mills = amount of monies owed
Each tax bill is a collection of taxing authorities charging for services rendered for the public good. Each taxing authority determines how much revenue they will need to deliver the service which results in a millage rate on the tax bill.
Taxable value is found when something is appraised and a value is assigned to it. Factors that change that value include exemptions such as a Homestead Exemption. This could reduce the taxable value by up to $50,000, thereby reducing the total tax to be paid.
Fluctuating property values can cause a taxable value to change. Taxable value may have a fluctuating number, one that isn’t constant from year to year, like the value of your home. The value of a home is determined through a formula which includes its market value. When the housing/real estate market is low, property values are low and that makes taxable values low. In order for a taxing authority to achieve the same amount of income, millage rates would have to rise to make up the difference in revenue. When housing/real estate markets are high, millage rates are frequently lowered.
Legislative action can change the amount of tax paid by issuing mandates to taxing authorities. For instance, there is no income tax in the State of Florida. When the State Legislature determines a particular service should be provided to its citizens, it can determine that the funding source for that service come from local taxing authorities.
In 2008 the electorate of Florida passed what was known as Amendment One. This allowed the portability of the Save Our Homes and Homestead Exemptions. The purpose of the amendment at the time was to lower property tax bills at a time when both property tax bills and homeowners insurance rates were very high.
Further action by the Legislature set in place a complicated formula limiting local government to the amount of revenue they can collect. Local government is only allowed to increase their ad valorem revenues by an amount equal to growth plus inflation.
Ad Valorem is a type of tax, based on the value of property.
Non-Ad Valorem is a term for assessments that are not based on the value of property.
Tax bills have different sections. The top section is for Ad Valorem charges. The bottom section includes any Non-Ad Valorem assessments, such as a Sanitation Unit or a Fire District.
Location, Location, Location
A home owners tax bill can vary greatly with their next door neighbor or friends across town, depending on where a house a located, the infrastructure serving the house and how long the owner has been a resident.
