All About Property Taxes
Now that it is November, Florida property taxes can start being paid, with full payment for the annual tax bill you just received due by March 31, 2024. You will receive variable discounts for paying them anytime between now and the end of March:
- November – 4% discount
- December – 3%
- January – 2%
- February – 1%
- March – no discount
Property taxes are paid in arrears in Broward County, which means that the TRIM (Truth In Millage) notice you received in late August and the property tax bill you recently received are for the current year that started last January 1.
Real estate property taxes are paid to the taxing authority in which the property is located. This is because the local municipality directly provides the services that benefit all property owners.
Property taxes pay for municipal services that can include:
- Local government administration and operation
- Public road maintenance, street lighting
- School district staff, administration, and buildings
- Water management districts
- Police and Fire Departments, other first responder services
- Trash and recycling pickup
- Other costs of operating and maintaining public infrastructure
Every year, as properties are sold and change owners, Broward County’s Property Appraiser’s Office re-establishes all properties’ Assessed Value, which is based on recent sale prices and local market factors. Assessed values are adjusted annually to include neighborhood and community sales trends in addition to individual property specifics.
The County Appraiser’s office does not send out tax bills. They provide each property’s Assessed Value to the County Tax Collector who mails bills to property owners and collects the tax amount.
It is fairly safe to say that the new Assessed Value for a Broward County property that was sold in the past year will be pretty close to its recent purchase price. When a property changes owners, the Appraiser’s Office is required to remove any exemptions (like Homestead) the previous owner had, and reassess the property to its market value. These adjustments become effective for the next tax year.
County Appraiser’s Offices don’t only wait for an individual property to sell before they reconsider its value for tax purposes. Each year they look at local real estate market trends and neighborhood sales prices to arrive at Assessed Values that will apply to all houses, condos, and undeveloped lots in the County even if a specific one has not changed owners recently.
Updates, upgrades, and renovations also add to a property’s Assessed Value. Through permit applications filed with the Building Department, the Appraiser’s office stays current on improvements and additions made to specific properties. Properties undergoing major renovation, as well as new construction in your neighborhood or community can factor into the Assessed Value for all nearby properties.
When a house or condo is sold, that tax year’s property taxes are pro-rated between seller and buyer according to their closing date. In Florida, more specifically Broward County, the property tax year is the calendar year. Sellers are responsible for paying the taxes for their time of ownership, buyers will owe from the closing date forward.
When closing occurs before the seller has paid that year’s property taxes, the closing title company or attorney charges the seller for taxes owed from January 1 up to the closing date. That sellers portion of property taxes is credited to the buyer, who is then responsible for paying the entire bill when it comes due later in the year. Important for the buyers to remember, they are then responsible for the tax bill that becomes due in November as they already received a credit at their closing for the seller’s portion.
In conclusion if you are behind on your taxes or simply want to see what your house is worth, contact our team at Homeinc today.