Property Tax Breakdown
When you look at property taxes, the federal tax code is 80,000 pages but each town and county can be different. With all these rules and inconsistencies across the states, it’s no wonder we get clients frequently asking questions about property taxes.
Property taxes or ad valorem taxes (Latin for: according to value) are the primary source of funding for the local governments. The funds collected by the local government officials are used to pay for services like:
- Welfare
- Police and fire
- New construction and maintenance of buildings
- Local infrastructure: highways, roads and streets
- Operations: salaries of the local units of government.
Here are three common questions that can help you understand property tax a little better.
1. How are property taxes calculated?
Property tax is determined by two components: the assessed value and the millage rate. The assessed value of the property, not the price you paid for the property. Normally the assessed value of the property is less than the market value. There are few times where your assessed value will be more than the purchase value but that usually only occurs if you got an amazing deal on the purchase of the?home.
The statewide average revenue distribution for each property tax dollar is as follows:
- County: $0.17
- Township: $0.03
- City/Town: $0.19
- School: $0.41
- Library: $0.04
- Special Unit: $0.07
- Redevelopment: $0.08
The millage rate is a tax rate that is applied to the assessed value of real estate. It is the amount per $1,000 that is used to calculate taxes on property. For example, a millage rate of 2 mills would mean 2 tenths of a penny.
Seminole County:
- Millage Rate: http://www.scpafl.org/taxrollinformation
Orange County:
- Tax estimator tool: http://vwebtpp.ocpafl.org/TaxEstimator/Search.aspx
- Millage Rate: https://www.ocpafl.org/Taxes/Taxroll_Info.aspx
2. How do I appeal my tax assessment?
Every year around mid-August, Seminole and Orange county send out their Notice of Proposed Property Taxes (TRIM notice). In some cases, you may disagree with your property’s assessed value and decide to make an appeal (You can also file a petition for denial of an exemption or classification, denial of a tax deferral or portability decision).
The procedure for appealing your tax assessment must be done within 25 days after receiving your TRIM notice. You will schedule a hearing (lasts no more than 15 minutes) where you will have the opportunity to present evidence along with the appraiser.
After the hearing , the Value Adjustment Board (VAB) will notify you of the final decision within 20 calendar days. If you still do not agree with the decision, you may file a lawsuit in circuit court.
Seminole County:
Orange County:
3. How do I find out what exemptions I may qualify for?
Most buyers consider property tax exemptions prior to buying homes and for good reason. The homestead exemption for example entitles the home owner at discount of $25,000 off the assessed value of the home which means several hundred dollars off the annual tax bill. For information on the different exemptions and eligibility requirements throughout Central Florida check with the appropriate county below.
Our potential home buyers frequently like to know the current property taxes on a property before purchasing but we have to warn them that the property taxes could change depending on how many exemptions the current home owner has and how long the owners have lived in the property.
Seminole County:
Orange County:
The Waypointe Difference
In our Central Florida brokerage, we have agents that are knowledgeable about local jurisdictions and boundaries. If there is anything we do not know, we will happily find you the resources you need to get the answer you need. We take pride in being real estate experts and will pass along that expertise to each of our clients.
