Property taxes—all homeowners have to pay them, but do we truly understand how they are calculated and assessed?

In the state of Florida, property taxes are administered by local governments, which means how the taxes are handled can vary from county to county. Property taxes are generally determined by millage rate, which is the dollar amount per $1000 of taxable value. In Lee County, these taxes consist of a combination of two different tax types:

Ad Valorem Taxes: These taxes are based on the value of property.

Non-Ad Valorem Assessments: These are fees for specific services such as solid waste disposal, water management, sewer, storm water, and special improvements.

In order to calculate the ad valorem tax on a property, a property appraiser must set the value of the property based on current market value, which includes buildings and other improvements that have been made. The assessed value is determined on January 1st of every year.

Each taxing authority within Lee County sets their own millage rate, so what the tax on an assessed property will ultimately be depends on where the property is located. The millage rate is multiplied by the value of the property, then divided by 1,000 to determine the amount of taxes.

If a property owner has applied for any tax exemptions (such as Homestead) these are deducted from the assessed value of the home, and the new value is used to determine the taxable value.

Florida property taxes run from January 1st – December 31st and are paid in arrears (meaning you own the property for a duration before you pay the taxes on it). Come November of the current year you are in, you’ll receive notification of your due taxes, and you can then pay them anytime from November 1st – March 31st. Depending on how quickly you can manage to pay your taxes, you may be eligible to receive a discount of 4% – 1%.

At Title Junction, we care about helping you stay informed throughout your real estate transaction. The experts at our title company have extensive knowledge about real estate not only in Cape Coral and Fort Myers, but all of Florida as well.

Have questions? Give us a call at 239.415.6574.

In case you missed it, check out our last Title Junction post: How Can I Determine My Housing Needs?

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