After successfully completing this topic, you will be able to describe property taxation in Florida and list the steps involved in the tax appeal procedure.
Property taxes are the principal source of revenue to Florida’s cities, counties, and school boards. The U.S Constitution does not allow the federal government to tax real property, allowing that right to the states and local governments. The state of Florida does not tax property value.
Property taxes are ad valorem taxes. Ad valorem is a Latin term that means “to the value.” So, property taxes are based on the value of real property. The county property appraiser appraises real property for counties, cities and school boards. The county property appraiser must appraise real property at current just value.
|January 1||Tax year begins; property tax lien attaches; filing for exemption begins|
|March 1||Tax exemption filing period ends|
|April 1||Prior year property taxes become delinquent|
|November 1||Property taxes become payable for the current year|
|December 31||Current tax year ends|
“Just value is the price at which a property, if offered for sale in the open market, with a reasonable time for the seller to find a purchaser, would transfer for cash or its equivalent, under prevailing market conditions between parties who have knowledge of the uses to which the property may be put, both seeking to maximize their gains and neither being in a position to take advantage of the exigencies of the other.”Florida Supreme Court ruling
“Just value” and “market value” are legally synonymous.
The property appraiser shall take into consideration
• the present cash value of the property, which is the amount a willing purchaser would pay a willing seller, exclusive of reasonable fees and costs of purchase, in cash or the immediate equivalent thereof in a transaction at arm’s length,
• the highest and best use to which the property can be expected to be put in the immediate future and the present use of the property,
• the location of the property,
• the quantity or size of the property,
• the cost of the property and the present replacement value of any improvements thereon,
• the condition of the property, and
• the income from the property.
A Truth in Millage (TRIM) notice is sent to property owners in August each year. The notice informs the taxpayers of the tax liability and shows which governmental entity is levying the tax. The notice will show the exemptions the owner is entitled to for the following year.
The mailing of the TRIM Notice begins the 25-day appeal period. The steps in the protest procedure are
If the court suit is not successful, the property owner has one more place to protest. He or she would ask a superior court for a certiorari proceeding (an appeal).