Taxes on farms, homes, land, and other kinds of real estate often make up a vital source of revenue both to the state and local governments. Property taxes are considered to be the leading category of revenue for both the local and state governments followed by individual income taxes. The significance of property law varies depending on the region and state. The laws are often governed at the local level but vary by county because they are based on the property values. Property taxes are considered to be one of the highest in the country even though people are allowed to get exceptions that aim at removing the load of some of the residents.
The Laws that Govern the Use of Property Tax in Florida
There are a number of laws that often governed the use of property tax in the state such as the Save Our Homes assessment limitation caps that aims at limiting the taxes that are due on the homes that are owner-occupied in Florida ( Ashar, 2011). More specifically, it increases in assessments for property taxes at the rate of 3% on an annual basis.
Delegate your assignment to our experts and they will do the rest.
1a. Restrictions
There are no restrictions on the use of property tax. However, the tax is often allocated by the state government.
Property Tax Levy
Florida levies a property tax. The first step of the process is appraising the property which is the act that involves placing a value on the property. All the counties in Florida have property appraisers who are elected officials that have the responsibility of annually appraising all the places in the county ( Brunori, 1998). Once the appraised value has been determined the property tax can be applied.
2a. How the State Levy on Property Tax Compares with the Local Property Tax
Property tax and the rates on property tax in Florida are considered to be near or below the State averages. For example, a normal homeowner in Florida often pays an average of $1,769 on an annual basis but is also worth noting that the amount varies greatly from one county to another. In addition, property tax is subject to exceptions that can be claimed on the residences that are owner-occupied ( Goldenberg, 2008). The exemption often reduces the assessed value by approximately $50,000 for most forms of taxes and approximately $25,000 for taxes that are charged on schools. Those homeowners who receive the homestead exceptions also gain the benefit of the Save Our Homes assessment limitations which caps grow in the value assessed at three percent or the inflation rate, whichever is lower. It means that even if a house is considered to be demanding in the housing market, the taxes will not increase unfairly.
2b. The Role of the State in the Collection of Local Property Tax
The state has a role in the collection of local property tax. More specifically, in the United States, revenue and county tax collectors, finance officers, and treasurer have the same purpose which is to conduct the state financial management duties at the county or local level ( Cch State Tax Law Editors, 2009). The main jobs of the officials are to collect and also distribute the local property taxes for the state so that the money can fund vital services such as roads, parks, schools, and roads. The duties of these officials indicate the role of the state in tax collection in addition to offering other services. Just like all the other states, the state of Florida has a role in the collection of local property tax. It is often possible through their Tax Collectors whose role include the collection of property tax for all the local government agencies that have the power to levy the tax. In addition, they manage local revenue programs like the collection of tourist development taxes and business tax receipts.
Difference in Tax Rates
The tax rates on various kinds of real property often differ according to a type of classification stated. More specifically, property taxes are often applied to the assessed value, not the value that was appraised on the home. Assessed value often takes into account the exemptions and the Save Our Homes assessment limitation.
3a. Rationale behind Taxing Different Types of Realty at Different Rates
The reason behind taxing various types of realty at different rates is because some take into account exceptions ( Walsh, 2008). For example, property tax has often applied the value that has been assessed and not the appraised value of the home. Assessed value often takes into account the exemptions and the Save Our Homes assessment limitation.
Elements of Property Tax
Property tax is often based on the market value or just value of the properties, which are often assessed by a local appraiser on the first day of every year. Taxes are often based on the millage rates that are set by the local governments, where 10 mills are considered to be a percentage.
4a. Form of Personal Property that is taxed
In Florida, intangible personal property is often taxed on an annual basis which is on the market value of the intangible property. The states intangible tax law is dated back to the year 1931 even though counties can impose the intangible tax from the year 1924. The state started administering tax from the year 1972The tax was known as voluntary because the residents easily avoided it through the creation of irrevocable trusts aimed at holding the taxable intangible personal property.
4b. Types of Properties that are Included
The types of intangible assets that are often included include bonds, mutual fund shares, and stocks which are owned by the businesses and residents of Florida.
4c. the Tax Rate
The property tax in the state of Florida is executed in millage rates. The millage rate is often the 1/10th of a percentage, meaning that for every $1,000 in terms of home value, there is $1 tax. Taxes can be levied by different authorities such as school boards, special district, municipalities, and counties.
Changes in the Aggregate Revenues from Property Tax
In the year 2006, the tax rate was $0.5 for every $1,000 of valuation which means that the revenue was $500 for every $1 million. It is a reduction from the previous rate that was $1 for every $1,000, which means that $1,000 for every $1 million. Evidently, there has been a reduction in the aggregate revenue from the property taxes that are often charged on properties. Hoverer, there some intangible taxes that were not taxed before such as franchises, cash, notes, accounts receivables that have arisen from the normal course of the business, and intangible property that are owned by tax-exempt, religious, charitable, and educational institutions.
Conclusion
Property tax is vital to the state of Florida because it is considered to provide the highest about of tax to the state. The state government through the Tax Collectors has some responsibilities that the collection of property tax for all the local government agencies that have the power to levy the tax. in addition, in Florida, intangible personal property is often taxed on an annual basis which is on the market value of the intangible property. The states intangible tax law is dated back to the year 1931 even though counties can impose the intangible tax from the year 1924.
References
Goldenberg, Y. (2008). Guidebook to Florida taxes 2009 . Place of publication not identified: Cch Incorporated.
Cch State Tax Law Editors. (2009). U.s. Master Property Tax Guide 2009 . Cch Inc.
Walsh, D. (2008). U.s. master multistate corporate tax guide 2009 . Place of publication not identified: Cch Incorporated.
Brunori, D. (1998). The future of state taxation . Washington, D.C: Urban Inst. Press.
Ashar, L. C., & Baker, S. A. (2011). The complete guide to planning your estate in Florida: A step-by-step plan to protect your assets, limit your taxes, and ensure your wishes are fulfilled for Florida residents . Ocala, Fla: Atlantic Pub. Group.
