Property Taxes

Property Taxes

Ad Valorem Tax

Real estate taxes (broadly the equivalent of The Council Tax in Britain) are known as 'ad valorem' taxes, which simply means they are taxes based on the value of your home. If you are purchasing a home in Florida, whether you are legally a Florida resident, or merely a non-resident, you will still be liable to pay ad valorem tax.

There are differences on the amount you have to pay depending on the functionality of the property: for example, a farmer would pay less property tax than a city centre property owner. Retirement buyers will be faced with smaller payments than a working couple.

Ad valorem payments are calculated per thousand dollars and usually range from between one and two per cent of the property's value. These are based upon the assessed value of the property and the non-ad valorem assessments, including costs such as providing fire protection and rubbish collection.

The School Board, Board of County Commissioners, municipalities and other ad valorem taxing bodies set the 'millage rates' for properties within their boundaries. The millage rate is the dollar amount to be paid in taxes for every $1,000 of their appraised value. For instance, if your property is valued at $100,000, and the millage rate is $15, you pay $1,500 a year.

Assessments for the payments of ad valorem tax begins in November of each year, as soon as the tax roll has been certified, with tax notices mailed on October 31. Florida state law requires property owners to be responsible for paying their property taxes and ensuring that they pay before the due date of April 1.

Tangible personal property tax

Tangible personal property tax is an ad valorem tax that is assessed against:

Any equipment, fixtures or furniture used for a business or commercial purpose

Leased equipment: for example, articles contained in properties that are rented, such as furniture, washing machines and computers

Furnishings and appliances in a rental property that are owned by the real property owner

Any attachments made to a mobile home or manufactured housing in a rental park

Any person, firm or corporation is required to complete and file an annual return with a Property Appraiser if they in any way own tangible personal property such as that described above. Anyone earning income from their property through rentals is liable for tangible personal property tax. If you own a home which you rent out, then any purchases you make should have receipts kept in order to file your tangible tax return. Household goods or personal items used by the homeowner in their own home are exempt from this.

All returns are to be filed between January 1 and April 1 of each year to avoid any financial penalties, which rise by five per cent each month after the deadline of April 1. If no return is filed a 25 per cent penalty is enforced and an assessment made on the property. The payment amount is based on an estimate by the Property Appraiser and taxes are assessed at the same rate as ad valorem tax, although payment differs from county to county, with some assessments based on the length of time you rent the property out for every year. The definitive, most concise answer regarding state taxes will come from the Florida Department of Revenue.

Returns that are filed early are subject to a discount:

4 per cent if paid in November

3 per cent if paid in December

2 per cent if paid in January

1 per cent if paid in February

Before buying a property in Florida it is worth obtaining our advice on how many Brits are caught out when buying certain properties and face bills thousands of dollars over what they were led to believe property tax would be.

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Andrew Bartlett an acknowledged expert on property trends and relocation in Florida, writes articles and answers readers’ questions for several British publications including Florida Magazine, Escape Magazine, Place in the Sun, Sunday Times, America, and The Red guide to buying Property in America and is regularly consulted by journalists and broadcasters. His consumer web guides have received numerous accolades.

Andrew was a Senior Government Official for 20 years before relocating to Florida several years ago where he was headhunted to set up specialist British property and relocation teams for Coldwell Banker and Remax - America’s largest estate agents. He then established a uniquely impartial and independent relocation and property briefing company working between Britain and Florida. He has written a number of watchdog style articles on overseas property and emigration selling techniques