The Millage Rate
Ad valorem taxes on real estate in Palm Beach County (and other Florida counties) are calculated on the basis of millage, which is an amount, set by law, that is multiplied by the taxable value of the property assessed, and divided by 1000. So, for example, if the millage rate is 20 mills, and a home has a taxable assessed value at $100,000, then the calculated ad valorem tax is $2000.00.
For example with respect to a residential property in Palm Beach County, West Palm Beach (the municipality) for tax year 2009 the millage might include levies from the following taxing authorities:
District Name Millage
CHILDRENS SERVICES COUNCIL - 0.6898
CITY OF WEST PALM BEACH - 8.0739
CITY OF WEST PALM BEACH DEBT - 0.3836
COUNTY - 4.3440
COUNTY DEBT - 0.2174
F.I.N.D. - 0.0345
PBC HEALTH CARE DISTRICT - 1.1451
SCHOOL LOCAL - 2.4980
SCHOOL STATE - 5.4850
SFWMD EVERGLADES CONST PROJECT - 0.0894
SO FLA WATER MANAGEMENT DIST. - 0.2549
SO FLA WATER MGMT - OKEE BASIN - 0.2797
The millage levy applied to the taxable value of the property, using the formula states above, is the sum of the above figures.
Florida law allows various categories of millage, including:
County Millage:
County millages include the following millage rates (Sec. 200.001 (1), Florida Statutes):
General county millage - the nonvoted millage rate set by the governing body of the county, and
County debt service millage - the millage rate necessary to raise taxes for debt service as authorized by a vote of the electors pursuant to s. 12, Art. VII of the State Constitution, which section authorizes counties, school districts, municipalities, special districts and local governmental bodies with taxing powers to issue bonds and certificates of indebtedness payable from ad valorem taxation to finance or refinance capital projects or to refund outstanding bonds.
County voted millage - the millage rate set by the governing body of the county as authorized by a vote of the electors pursuant to millage caps set forth in s. 9(b), Art. VII of the State Constitution.
County dependent special district millage - the millage rate set by the county for a taxing district authorized by the legislature, the electors, pursuant to s. 15, Art. XII of the State Constitution (bonds may be issued to establish a fund for student loans), or districts otherwise authorized.
Municipal Millage:
Municipal millages include the following millage rates (Sec. 200.001(2), Florida Statutes):
General municipal millage - the nonvoted millage rate set by the governing body of the municipality.
Municipal debt service millage - the millage rate necessary to raise taxes for debt service as authorized by a vote of the electors pursuant to s. 12, Art. VII of the State Constitution.
Municipal voted millage - the millage rate set by the governing body of the municipality as authorized by a vote of the electors pursuant to millage caps set forth in s. 9(b), Art. VII of the State Constitution.
Municipal dependent special district millage - the millage rate set by the municipality for a taxing district authorized by a special act of the legislature, authorized by a special act and approved by the electors, authorized pursuant to s. 15, Art. XII of the State Constitution (bonds may be issued to establish a fund for student loans), or districts otherwise authorized.
School Millage:
School millages include the following millage rates (Sec. 200.001(3), Florida Statutes):
Nonvoted required school operating millage set by the county school board for current operating purposes.
Nonvoted discretionary school operating millage - the nonvoted millage rate set by the county school board for operating purposes other than for current operating purposes or capital improvement.
Voted district school operating millage - the millage rate set by the district school board for current school operating purposes as authorized pursuant to s. 9(b), Art. VII of the State Constitution.
Nonvoted district school capital improvement millage - the millage rate set by the district school board for capital improvements.
Voted district school debt service millage - the millage rate set by the district school board as authorized by a vote of the electors pursuant to s. 12, Art. VII of the State Constitution.
Independent Special Districts
Independent special district millage (Sec. 200.001(4), Florida Statutes):- the millage rate set by the governing body of an independent special district
Manner of determining Millage
Millages are fixed only by ordinance or resolution of the governing body of the taxing authority in the manner specifically provided by general law (as codified in the Florida Statutes) or by special act (a special act of the legislature which is not of general application). Section 200.065 of the Florida Statutes sets forth a procedure for the taxing authorities (county, municipality, etc.) to interface with the county property appraiser (the constitutional officer charged with assessing property as to taxable value - the figure to which the millage is applied) and thereafter set a final millage for the year. Among other things, section 200.065 includes provisions for notices of tax increases, public hearings, and oversight by the Florida Department of Revenue.
Millage caps
Both the Florida Constitution and the Florida Statutes set forth millage caps.
Florida Constitution:
SECTION 9. Local taxes.--
(a) Counties, school districts, and municipalities shall, and special districts may, be authorized by law to levy ad valorem taxes and may be authorized by general law to levy other taxes, for their respective purposes, except ad valorem taxes on intangible personal property and taxes prohibited by this constitution.
(b) Ad valorem taxes, exclusive of taxes levied for the payment of bonds and taxes levied for periods not longer than two years when authorized by vote of the electors who are the owners of freeholds therein not wholly exempt from taxation, shall not be levied in excess of the following millages upon the assessed value of real estate and tangible personal property: for all county purposes, ten mills; for all municipal purposes, ten mills; for all school purposes, ten mills; for water management purposes for the northwest portion of the state lying west of the line between ranges two and three east, 0.05 mill; for water management purposes for the remaining portions of the state, 1.0 mill; and for all other special districts a millage authorized by law approved by vote of the electors who are owners of freeholds therein not wholly exempt from taxation. A county furnishing municipal services may, to the extent authorized by law, levy additional taxes within the limits fixed for municipal purposes.
The Florida Statutes:
As to counties - under Section 200.071, no ad valorem tax millage shall be levied against real property and tangible personal property by counties in excess of 10 mills, except for voted levies.
Counties operating municipal service taxing unit may levy additional millage. Section 200.091 authorizes a referendum for approval of additional millage.
As to municipalities - under Section 200.072, no municipality shall levy ad valorem taxes against real property and tangible personal property in excess of 10 mills, except for voted levies.
Special Financial Concern - under 200.185, the Florida Legislature set defined maximum millage rates for the 2007-2008 and 2008-2009 fiscal years for any "county of special financial concern" or "municipality of special financial concern" as more fully described in that section.
Chapter 200, Florida Statutes, and other statutory provisions, include millage regulations for water management districts, hospital districts, and others in addition to county, municipal and school levies.
Notice to the Taxpayer:
Section 200.069, Florida Statues, requires that a specific information form of notice of proposed property taxes and non-ad valorem assessments must be prepared and delivered by first-class mail to each taxpayer to be listed on the current year's assessment roll (the roll of values provided by the county property appraiser). Regulations promulgated by the Florida Department of Revenue detail the form the Truth in Millage Notice (the "TRIM" notice typically sent out in August of each year).
The Tax Bill:
In addition to the notice from the Property Appraiser, the tax bill issued by the county Tax Collector will list the various taxing authorities and applicable mileages which comprise the ad valorem tax bill, as shown in the example above. Other assessments which are not ad valorem (which are levied without regard to the taxable value of the property) may be included in the bill.
The taxing authorities and millage can vary depending upon the location of the property to be taxed.
The Palm Beach County tax collector has prepared a brochure describing property tax administration:
http://www.pbcgov.com/tax/pdf/property_tax_cycle.pdf
The following chart regarding millage rates and taxes may be of interest. The term "rollback" rate refers to the rate which would produce a prior year’s tax revenue if applied to the current assessed property values:
http://www.pbcgov.com/papa/pdf/2008vs2009taxeslevied.pdf
Even if the taxable value of real property declines, the ad valorem tax bill can go up through an increase in taxes, implemented through an increase in the millage levy applicable to the property.
The foregoing discussion is in summary form, and does not, and is not intended to, discuss all of the statutes, regulations and court opinions which affect matters included in the article. It is not intended as legal advice.