Chances are you’ve seen something called a “millage rate” if you are a homeowner or have participated in the city or county government process.
The millage rate is set by taxing authorities, according to the Florida Department of Revenue’s “A Florida Homeowner’s Guide: Millage.”
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That includes:
- county governments
- school boards
- water management districts
- special districts and municipalities within a county
Taxing authorities adopt a budget and levy millage rates to fund that budget.
Millage is a tax rate defined as the dollars assessed for each $1,000 of value. One mill is one dollar per $1,000 of assessed value.
Mathematically speaking, the equation is: Taxable value ÷ 1,000 × millage rate = Property Tax Owed.
Yes, you can have a say in how your tax dollars are spent: Taxpayers can take part in public hearings that take place in September when taxing authorities present and discuss tentative budgets and millage. Taxing authorities typically begin developing their budget in June and tentative millage rates for taxing authorities other than school districts are set before August 5.
Here is a quick breakdown of some top questions you may have about millage rates:
How does millage affect my tax bill?
Using the aforementioned equation (Taxable value ÷ 1,000 × millage rate = Property Tax Owed) will help you understand how millage will be applied to your property tax bill.
Example: The owner of a property that has a taxable value of $100,000 and is subject to a millage rate of 5.2 would owe $520 in property tax.
$100,000 taxable value ÷ 1,000 = 100 mills
100 × 5.2 millage rate = $520 property tax
Are there limits to how much millage rates can increase each year?
Yes. Once a taxing authority sets the tentative millage rate, they cannot adopt a higher millage rate without restarting the process.
Can a taxing authority adopt a lower millage rate?
Yes. A millage rate reduction can be approved with a simple majority vote.
If a millage rate is lowered will my property tax bill decrease?
Not necessarily. There are several factors which can cause your tax bill to increase even if a taxing authority decreases its millage rate:
If your taxable value has increased, it may offset any millage rate decrease
If other taxing authorities raise their millage rates, your overall tax bill may increase.
Deferred value, as a result of your homestead exemption, can increase your taxable value even during periods of slow growth or market downturns.