A note about property taxes in Florida….

There are often rumors (especially in Canada) that non US citizens are discriminated against and have to pay higher property taxes. This is completely false and although there are indeed two levels of property taxes, the higher rate has absolutely nothing to do with your nationality, or even your State of residence. This has everything to do with whether or not you actually live in the property you own. Even those of us who live in Florida have to pay the higher (non homestead) rate on any property we own that is not our principal residence. You are only allowed one homesteaded property and you must live in it.

How are the taxes assessed?

The property taxes are based on the assessed house value, however the mill rate will vary by county. Some counties will therefore have higher property tax rates than others.

For example, when comparing mill rates, Collier County (which includes Naples) has a much lower tax rate than Miami Dade county.

• Collier 2011 Millage Rate: 4.2577
• Miami Dade 2011 Millage Rate: 8.2893
• Lee 2011 Millage Rate: 5.0141

Lee county includes: Fort Myers, Bonita Springs, Cape Coral, Lehigh Acres etc.

The rates for all Florida counties are publicly available on the Florida Association of Counties website.

For what period is the property tax?

Florida Property Tax is based on market value as of January 1st that year. Taxes are due November 1st of that year. The taxpayer has five months in which to pay the tax before it becomes delinquent. There are discounts offered for paying taxes early.

What does non-homestead property mean?

If the home is not your primary residence, it is considered non-homesead. Homestead residences qualify for certain tax reductions.

For example, if you are a Canadian, owning your primary residence in Canada and you bought a home in Florida as your vacation home or a rental, it will be considered non-homestead.

Does non-homestead mean that the Florida county can drastically increase my property taxes?

No.

In 2008, Florida voters amended the Constitution to give non-homestead property owners some protection against dramatic increases in their annual property tax assessments.  As amended, the Florida Constitution now prohibits the assessment of certain non-homestead property from increasing by more than 10% per year.  The 10% cap applies to nonhomestead residential property (i.e. apartments and other rental property) and nonresidential property (i.e. commercial property and vacant land).  The requirements for residential property are set forth in Fla. Stat. 193.1554

Essentially, this means the assessed value of non-homestead property will be equal to market value. If a non-homestead property is appraised at $350,000 in 2008, it will be tax assessed at $350,000. If the property is capped at 10% cap in 2009, its assessed value could not increase above $385,000, regardless of market performance