How are my Property Taxes Calculated?

Property Taxes

If you own a home you must have already received your TRIM Notice for the payment of annual property taxes, and wonder how this amount is calculated.

Property taxes can increase from one year to the next for various reasons. Some of these reasons may be that the market value has changed, that the millage rate (also known as the tax rate) has changed, that the property has lost an exemption, or a property that was receiving an Amendment 10 “Save Our Homes” cap on assessed value has had the cap removed because it was sold.

Mill" means one one-thousandth of a United States dollar. "Millage" may apply to a single levy of taxes or to the cumulative of all levies. In 2014 for example the Millage rate in Miami Dade was an average 22%

Save Our Homes” Limits the increase of assessed value for a home by 3% or the Consumer Price Index, whichever is less. The assessment limit begins in the second year of your homestead exemption.

Your Tax bill is comprised of two components, ad valorem taxes and non-ad valorem assessments:

"Ad valorem tax" means a tax based upon the assessed value of property. The term "property tax" may be used interchangeably with the term "ad valorem tax."

"Non-Ad Valorem tax" These are assessments against the property that are not based on market value. They include special assessments and service charges for items such as solid waste districts, lighting districts, landscape districts, guard districts and Community Development Districts (CDD).These non-ad valorem assessments are included in the estimate only if the local government charging them has arranged for them to be collected by the Miami-Dade Tax Collector as part of the annual real property tax bill.

Be aware that Property taxes are not a fixed amount for all comparable homes. Your neighbor next door can have the same exact home as you and still pay a completely different amount of property taxes depending on the amount he paid for the home, when it was purchased, and if he has any tax exemptions you may not be eligible for.

On my next post I will explain the different exemptions you can apply for on your Property Taxes and how to apply for them.