ESTIMATING PROPERTY TAXES IS NOT AS SIMPLE AS IT ONCE WAS...

The equation to determine property taxes was once a simple formula:

     Market Value - $25,000 Homestead Tax Exemption = Taxable Value x Tax Rate = Property Tax

However, with the passage of certain tax saving amendments to Florida’s Constitution, the calculation is much more complicated. There are now a multitude of variables that must be considered and established, many of which are not available until August when the preliminary tax roll has been certified. These variables include:

• What type of exemptions will the owner be granted and how are those exemptions applied?


• Homestead Exemption is applied to the owner’s proportionate interest not to exceed $25,000. This exemption is applied against all tax levies.
• Additional Homestead Exemption applies only to those properties with an assessed value in excess of $50,000. Only those properties with an assessed value of $75,000 or more will receive the full $25,000 additional homestead exemption. The additional homestead exemption does not apply to the school tax levies.
• Additional Exemption for Low Income Seniors applies only to the Brevard County’s General Fund levy and to the municipal levy if the municipality has approved this exemption.


• Will the owner be transferring any Save Our Homes (3%) cap, also known as “portability?”


• From what County will they port? How much will they port? Are they upsizing or downsizing their home (the calculations for each scenario are different)?


• Will the owner have a 10% non-homestead cap as well as the Save Our Homes 3% cap? This is common with multi-family or other types of commercial property with a portion allocated as a residential homestead. The 10% cap does not apply to the school tax levies.


• Will the owner have a Florida service-connected disability discount? If so, each taxable value will be discounted in different amounts based on his or her percentage of disability.

All of these variables create the potential for inaccurate estimates that may be relied on by taxpayers and/or mortgage companies. The Property Appraiser’s office is statutorily responsible for valuing property and administering exemptions --- we are not responsible for setting tax rates or calculating taxes. With this in mind, and knowing that a large margin for error exists, we have discontinued the practice of providing tax estimates.

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