Administering the Property Tax: FLORIDA

Administering the Property Tax: FLORIDA

  1. The Florida tax law reserves property tax collection to the local government and the rates differ from one county to another. The property taxes are based on the market value of the property.  

1a. Property taxes in Florida are restricted under the Save Our Homes Amendment passed in 1992 that allows local government to increase tax rate each year by a value not exceeding 3% of the previous year’s property value based on the consumer price index.

  1. Florida levies property tax. Whereas the local governments in Florida set the millage rates, the amount to levy is calculated as the millage rate times the property value. The local governments, counties and schools can levy property tax not exceeding 10 mills per property. 

2a.The property tax levies are different from local property tax in that the levies can be done by counties, schools and other public institutions while local property taxes are collected by the government. Another difference is that the property tax levy is limited to 10 mills.

2b.Even though the role of collection of property taxes lies with local governments, Florida state government has the role of putting in place property tax exemptions such as the homestead exemptions, widow(ers) exemptions, senior citizen exemptions, among other exemptions. 

  1. Tax rates are the same for all types of real property but the amount to be levied depends on the market value of the real property. All rental income is also taxed depending on the amount of money. However, some properties are exempted from taxes. 

3a. Real property that is exempted from taxes include inheritance property. Some mobile homes are also taxed as real property whereby the mobile owner is required to purchase a real property decal that is purchased only once. These homes are also taxed annually at the same rate with other real property. 

  1. In Florida, what is included in the property tax include real and tangible property owned within the state. The local and county governments have the mandate to identify the value of the property and to identify exemptions.

4a. Only tangible personal property is taxed in Florida. However, intangible personal property used to be taxed before the tax was repealed in 2007. 

4b. Since only tangible personal property is taxed, the types of property that local governments target include businesses including furniture, fixtures and equipment used in the businesses and rental furnishings including fixtures in the rental units. 

4c. The tax rate for tangible personal property ranges from one local government to another. The rate is also determined by the market value of each tangible personal property. For instance, one is required an average personal property tax rate of 1.18% in Orange county.

  1. The aggregate revenues from property taxes in Florida have been increasing every year for the past decade. 

5a. For instance, the total property taxes for FY 2015-2016 were 7.38% more than those collected in the 2014-2015 FY.

5b. In the future, the aggregate revenues from property taxes are likely to increase as the number of people who own property in the state increase. 

5c. Some of the factors that are likely to affect the property tax rate in the next decade include: the number of people owning property, the market value of the tangible property within Florida, changes in the property tax rates, among other factors.

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