Ad Valorem Tax Process

The pie chart above provides a visual break down of where your tax dollars are spent. In general, for 2023, 49.04% is levied by the School Board, 50.77% is levied by the County and 0.19% is levied by the Northwest Florida Water Management District (NWFWM) based on 2023 final millage rates set by the respective taxing authority.

Every property taxpayer will pay ad valorem (according to your value) taxes to the County, School Board and Northwest Florida Water Management District. If you are within city limits, you will pay city taxes to the City of Milton, City of Gulf Breeze or the Town of Jay. These are also ad valorem taxes, based on the assessed value of your property.

The City of Milton, Midway Fire District, Pace Fire District, Avalon-Mulat Fire District and the Holley-Navarre Fire District set their own Fire Assessment rates. All other taxpayers are assessed a fire tax set by the County for your respective Fire Department, and that fire tax is a uniform flat fee. For more information on County Fire Rates, call (850) 983-5360.

The Property Appraiser is only responsible for setting the assessed value of your home. The assessed value, less any exemptions, is then multiplied by the millage rate set by the individual taxing authority to determine the amount of your ad valorem taxes. For your convenience, we have provided contact information for each of the taxing authorities mentioned above:

In addition to these taxes, you may be assessed non-ad valorem taxes for MSBU’s or Municipal Service Benefit Units. These include street lighting, sewer/water, road paving, etc. All questions concerning MSBU’s should be directed to the County Budget office at (850) 983-1859. The Property Appraiser’s office does not initiate, establish nor maintain MSBU’s.

Real Property

The physical land and appurtenances affixed to the land, e.g., structures. The term “land”, “real estate”, “realty” and “real property” are often used interchangeably.

Tangible Personal Property

Items other than real estate that is used in a business or rental properties. It includes such assets as furniture, computers, tools, machinery, signs, equipment, leasehold improvements, supplies and leased equipment.

Minerals

Although considered real property are mentioned separately due to the oil fields in Jay and the Blackjack Creek Field. Mineral rights and working interests are taxable.

Centrally Assessed Properties

Commonly thought of as railroads, are appraised by the Department of Revenue.

Mobile Homes & Manufactured Homes

When permanently in place with a real property (RP) designation.

Santa Rosa County uses the same appraisal techniques normally used by independent fee appraisers. These are the Cost Approach, Sales Comparison Approach and the Income Approach.

Cost Approach

The principle of substitution is basic to the cost approach. This principle affirms that no prudent buyer would pay more for a property than the cost to acquire a similar site and construct improvements of equal desirability and utility without undue delay. Information pertaining to cost is acquired from builders, cost information services and from market abstraction. If the property is not new the appraiser must estimate depreciation and deduct it from replacement cost new.

Sales Comparison Approach

This approach is the process in which a market value estimate is derived by analyzing the market for sales of similar properties and comparing these properties to the subject property. Sales of similar properties must be carefully analyzed to make sure that no adverse conditions existed that would affect the purchase price. Once this is determined, the value of the subject property may be estimated.

Income Approach

This approach is a unique method to evaluate property, usually used to evaluate commercial properties. It requires a study of how much revenue the property would produce if rented. From the gross estimated revenue the appraiser would adjust for losses and expenses. The net estimated income would then be converted into an indication of value by a mathematical process called “capitalization.”

In Florida, property taxes and real estate taxes are also known as ad valorem taxes. Ad valorem means “based on value”. The greater the value, the higher the assessment. Taxes usually increase along with the assessments, subject to certain exemptions.

Santa Rosa County property taxes provide the fund local governments to provide needed services such as education, law enforcement, and public works. Without property taxes many of the services provided by local government would not be available.

The property appraiser is not the person who determines the amount of taxes levied. Those who are responsible are known as the taxing authorities, examples being the county commission, school board, cities, fire departments and water management districts. The property appraiser’s responsibility is to determine market value of your property and to maintain equity within the tax roll. The assessed value of your property is only one part of the equation.

• Assessed Value: Provided by the Property Appraiser
• Exemptions: Granted by the Property Appraiser
• Assessment Rate: Determined by Taxing Authorities
• Taxes Payable: A mathematical calculation

Frequently Asked Questions About Amendment 10 – Homestead Assessment Limitation

What is the Save Our Homes Amendment?

“Save Our Homes” (SOH), an Amendment to the Florida Constitution, approved by Florida voters in 1992, effective January 1, 1995. SOH places a limitation of 3% on annual assessment increases on homestead exempt property. For all property first granted homestead exemption in the prior year, that year’s market value will be the base value for the implementation of “Save Our Homes”. Thereafter, the assessed value will not increase more than 3% or the percentage change in the Consumer Price Index (CPI), whichever is less. The property’s market value may differ from SOH assessed value. SOH assessed value will never be greater than market value. Section 193.155, Florida Statutes, was enacted to implement the amendment to the Florida Constitution to limit annual increases in property value assessments on real property qualifying for and receiving the homestead exemption.

What is the Save Our Homes Cap for 2024?

The CPI for 2024 was 3.4%. Therefore, the SOH Cap for 2024 is maxed at 3%.

Which property is affected?

Only homestead property that remains under the same ownership during the calendar year qualifies for the limitation.

How does a divorce or death of a spouse affect your SOH cap?

The cap remains in effect upon the change of title due to divorce or death of a spouse as long as the remaining owner originally made application and continues to live on the property as their permanent residence.

What types of property are not subject to the Save Our Homes cap?

Non-homestead property (such as residences without homestead, vacant land, non-residential property), agricultural property, tangible personal property as well as homestead property that has been sold or otherwise conveyed to a new owner during the calendar year are not subject to the limitation on assessment. (For more information on non-Homestead property assessment capping, see “Non-Homestead Limitation.”

What about improvements or additions to the property?

The additions or improvements are valued at market value in the year of construction, and that value is then added to your capped assessment. SOH then applies to these additions/improvements in subsequent years.

How is property with a partial homestead exemption affected?

Only that portion of the property receiving homestead exemption is subject to the assessment limitation. The remainder of the property is assessed at full market value under the law.

What is the so-called “recapture” rule?

In September 1995, the Governor and Cabinet approved a rule directing property appraisers to raise the assessed value of a qualifying homestead property by the maximum of 3% or the CPI, whichever is less, on all properties assessed at less than full market value whether or not that property’s value increased during that calendar year.

For example, Property A’s market value increases by 10% this year. As a homestead property, the property appraiser can only increase its value by 3%, or CPI, whichever is less, under the SOH limitation. In the next year, Property A’s market value did not change. Since its assessed value under the limitation remains under market value, the property appraiser must increase the assessed value by 3%, or CPI, to bring its value closer to market value.

What happens when a property is sold or otherwise conveyed to a new owner?

The assessment on any property which is sold or otherwise conveyed to new owner during a calendar year is raised to full market value according to law. The limitation will be applied to the assessed value in the first year following the year in which the new owner qualifies the property for homestead exemption.

Even if the property received a homestead exemption under the previous owner, the limitation – just like the exemption – expires with a change in ownership. The new owner must apply for and receive a homestead exemption.

Can my TAXES go up more than SOH capped percentage?

Yes, SOH is a limitation on the assessed value of the homestead property, not the taxes. Millage rates (determined by the various taxing authorities) may increase or decrease as those taxing authorities determine their budgets. In addition, on multi-dwelling/agricultural parcels only the homesteaded portion is subject to the SOH limitation.

Frequently Asked Questions About Non-Homestead Assessment Limitation

When did the 10% cap go into effect?

It became effective beginning with the 2009 tax roll. The 10% cap will only ensure your assessed value does not increase more than 10% from the previous year assessed value. The cap will remain, providing ownership does not change, there was no split or combination of the property during the previous year, and no new construction has occurred.

What is “non-homestead property”?

All properties that DO NOT have a homestead exemption, such as 2nd homes, rental properties, vacation homes, vacant land or commercial property.

Do I have to apply to receive this cap?

No, the cap will automatically be applied to your property.

Can I get the 10% cap on my homestead property?

No, this assessment cap is only for all “non-homestead” properties. Homesteads already benefit from the maximum 3% Save Our Homes assessment cap.

Will the 10% cap reduce my taxes?

There is no guarantee your taxes will reduce due to the 10% assessment cap, as many other factors are involved such as tax rates and non-ad valorem assessments, neither of which are determined by the Property Appraiser.

Will my assessment increase 10% each year?

Not necessarily. The maximum amount your assessment can increase from one year to the next is 10%. Depending on market factors, your assessed value could increase less than 10% or could decrease.

Does the 10% cap apply to millage rates of ALL taxing authorities?

The 10% cap applies to all taxing authority millage rates EXCEPT the School Board millage.

If I purchase a property that has received benefit from the 10% cap, will my assessment change from the prior owner’s assessment?

The 10% assessment cap remains for the balance of the tax year in which the property was purchased. But, Florida law provides that the property must be reassessed at full market value in the year following the sale.

If there is a change of ownership or control not recorded on a deed, does it trigger a reassessment?

Yes. And per Florida Statute 193.1556, any person or entity owning property under the 10% cap provision MUST notify the property appraiser promptly of any change of ownership or control. Failure to do so may subject the property owner to a lien of back taxes plus interest of 15% per annum and a penalty of 50% of the taxes avoided.

During the month of August, the taxing authorities will mail each property owner a Notice Of Proposed Property Taxes. This statement will identify the property by Parcel Number and very brief legal description. It will list each taxing authority and itemize the actual amount of taxes for last year, the proposed amount for this year and the rollback rate if no budget change is made. At or near the bottom of the form will be your Market Value for last year, Market Value for this year, your respective assessed values for each year, your exemptions and the taxable values.

Florida’s Constitution and state law require that all assessments be made at market value. Certain homestead residential properties show an assessed value different from market value due to application of the constitutional limitation on increases as a result of “Save Our Homes.”

If you have any questions about your property’s appraisal or how it was determined, I encourage you to contact this office. A staff member will be happy to discuss your assessment with you and will be able to show you the information that led us to your property’s value. Our office maintains current records on all real estate market activities which are available for your review.

If, after meeting with an appraiser and reviewing relevant data, you still have concerns about your assessment, you have the right to file a petition with the Value Adjustment Board (VAB). Petition forms are available at the Property Appraiser’s office. The deadline for filing a petition is 25 days from the mailing of your notice. You must file on or before this date to have your appraisal considered. There will be a $15.00 fee payable at filing.

If, after meeting with an appraiser and reviewing relevant data, you have the right to file a petition with the Value Adjustment Board (VAB). Petition forms are available at the Property Appraiser’s office. The deadline for filing a petition is 25 days from the mailing of your notice. You must file on or before this date to have your appraisal considered. There will be a $15.00 fee payable at filing.

Tax rate (millage) is set by the various taxing authorities as shown on your proposed tax notice. These entities are authorized to levy taxes on real estate and tangible personal property to fund their operations and services. The tax rate is determined by dividing the taxing authority’s proposed budget by the total assessed value of all non-exempt property within the taxing district.

Taxpayers are given an opportunity through one or more public hearings on the proposed budget to comment on planned expenditures. The tax rate is based upon the final budget approved by the taxing authority following the hearing(s).

Your November tax bill is calculated by multiplying your property’s assessed value (less any exemptions) times the tax (millage) rates set by each taxing district in which your property is located.

For additional information please contact our office.