Florida Property Tax

Property Tax Discount
As in previous years, the 2011 Florida Statutes provide a beneficial discount to taxpayers for the early payment of property taxes. The amount of tax savings can be up to 4%, depending upon the month in which you pay the assessed taxes. Discounts for payments made before delinquency are granted at the following rates:

• November payments are discounted 4%
• December payments are discounted 3%
• January payments are discounted 2%
• February payments are discounted 1%

There will be no discount for payments received in the month of March.  Property taxes must be paid by April 1, 2012.  

Partial Payment of Ad Valorem Taxes When Petitioning an Assessment
The purpose of the Florida Valuation Adjustment Board (VAB) is to hear appeals regarding denied exemptions, petitions relating to assessments, and appeals concerning ad valorem tax deferrals. On July 1, 2011, the Florida Legislature enacted a Statue which altered the required payments of tax when a petitioner challenges the assessed value of his or her property before the VAB.  Petitioners in 2011 are now required to pay all of their non-ad valorem (tangible personal property) taxes and at least 75% of their ad valorem (real estate property) taxes before they become delinquent (April 1st).

The new Florida Statue also pertains to taxpayers who challenge the denial of a classification, the denial of an exemption, or a determination that improvements were not substantially complete as of January 1st. Similar to the VAB circumstances, a petitioner must now pay all of the non-ad valorem taxes and the amount of ad valorem taxes that they admit in good faith to be owing. In Florida, property taxes become delinquent if not paid by April 1st of the next year. Thus, if a taxpayer fails to pay their 2011 property taxes by April 1, 2012, the VAB is required to automatically deny their petition on that property.

Should you have any questions related to this Tax Flash, please contact your Marcum LLP tax professional.