What are Property Taxes?
The property tax is based on the value of the real property calculated by the local government. It is an obligation of the owner, and is secured by a tax lien on the property. Property tax is an ad-valorem tax based on the value of the land and buildings situated on the property,
The local government will use the paid property taxes to fund the costs of the local and county governments and will go towards payment of essential services, which may include water and sewer improvements, law enforcement, fire protection, education, road and highway construction and maintenance, libraries, and other services that benefit the community.
Property Tax Appeals
On January 1st of each year the county in which the property is located assesses the property and applies a tax based on the tax rate for that locality. The tax is listed as the ‘ad valorem tax’ or real property tax. The county’s appraisal of value is often lower than the true market value. If your residential or commercial property is appraised higher than its fair market value, you may be paying too much in property taxes. To obtain a tax reduction during the year, homeowners must show that their property was overvalued at the time the value was set.
Homeowners can appeal the property appraiser’s value of their home and may be able to reduce the amount of taxes one owes. However, only about 2% of property owners in Florida appealed their property values. The majority of the 2% that did appeal were successful in reducing their property taxes.
Property valuation lawsuits will arise when the value assessed by the county property appraiser’s valuation is excessive or incomparable to nearby properties with similar characteristics.
How Property Tax Works
The amount owners owe in property tax is determined by multiplying the property tax rate by the property appraiser’s determination of the assessed value of the property in question. Most taxing authorities will recalculate the tax rate annually. The value is based on the land, structures, or other fixed buildings.
The payment schedule of property taxes varies by locality. In almost all local property tax codes, there are mechanisms by which the owner can discuss their tax rate with the assessor or formally contest the rate. When property taxes are left unpaid, the taxing authority will hold a lien against the property.
Florida National Title Services
Florida National Title is available to help with many of your real estate needs. Florida National Title Services works under the supervision of attorneys Michele Lewis and Richard S. Weinstein, experienced real estate attorneys. They work to ensure the title of the home you desire is clear and marketable and that title insurance policies are properly issued.
Florida National Title Services provides expert title services. When you are renting, we can help with every step of the way. Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase and refinance experience and have helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to understand the process better and to help them avoid many of the pitfalls. Call us at (561) 408-0729 or visit our website.
Florida National Title Services, LLC
250 S. Central Blvd., Suite 101
Jupiter, Florida 33458
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