Non-Ad Valorem Tax The Special Property Assessment
Last Updated: May 11, 2023 • 5 min read
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When discussing property taxes, non-ad valorem taxes often come up, leaving many homeowners scratching their heads. In this article, we'll delve into what is non ad valorem tax, how it differs from regular property taxes, and some examples you might encounter. We'll also touch on how these taxes are assessed, managed, and regulated according to Florida law. So let's get started!
What is Non-Ad Valorem Tax?
In a nutshell, non-ad valorem taxes are special assessments that are not based on the assessed value of a property. Instead, these taxes are levied for specific services or improvements provided by a local government, municipal service, or special district. Common examples of non-ad valorem assessments include solid waste collection, stormwater runoff management, and street lighting.
Understanding Non-Ad Valorem Taxes in Florida
In Florida, the regulations of the Florida Department of Revenue dictate how non-ad valorem taxes are assessed and collected. Additionally, the Board of County Commissioners and local governing boards, such as school boards and municipal governments, play a role in overseeing these taxes.
Tax Notices and Property Tax Bills
Each year, property owners receive tax notices that include both ad valorem (based on property value) and non-ad valorem taxes. These notices are typically sent out on November 1st. They include information about your property value, millage rates, and any special assessment districts that may apply. The combined notice of ad valorem taxes and non-ad valorem assessments can be found on your real estate tax bill.
Property Appraiser's Office and Tax Collector's Office
The property appraiser's office is responsible for determining the assessed value of properties and maintaining public records related to property ownership. They can also provide additional information about non-ad valorem taxes and their levying authorities.
On the other hand, the tax collector's office handles the collection of taxes, including non-ad valorem assessments. They can assist with questions about payment, tax notices, and any other tax-related issues.
Examples of Non-Ad Valorem Assessments
Non-ad valorem taxes can be levied for various services or improvements. Here are some common examples:
- Solid waste collection. Fees for garbage collection and solid waste management in your area.
- Stormwater runoff. Charges for managing stormwater runoff to prevent flooding and protect the natural state of the environment.
- Street lighting. Costs for maintaining and improving street lighting in your neighborhood.
- Municipal services. Charges for services provided by your municipal government, such as fire protection or recreational facilities.
- Special district assessments. Fees are imposed by special districts for specific services or improvements within a defined assessment boundary.
How Non-Ad Valorem Taxes Affect Property Owners
If you have a mortgage on your property, your mortgage company may collect and pay your non-ad valorem taxes through an escrow account. This helps ensure that your taxes are paid on time and avoids any penalties or interest. Contact your financial institution for more information about escrow accounts and non-ad valorem tax payments.
Early Payment Discounts
Florida law allows property owners to receive discounts for early payment of real estate taxes, including non-ad valorem assessments. By paying before the due date, you can save on your total amount due. Check your tax notice for early payment deadlines and applicable discounts.
Homestead Exemption and Other Tax Benefits
While non-ad valorem taxes are not based on property value, certain tax benefits, such as the homestead exemption, can still impact your overall tax bill. Consult your local property appraiser's office for information about available exemptions and how they may affect your non-ad valorem taxes.
Stay Informed and Engaged
As a property owner, it's essential to stay informed about non-ad valorem taxes and how they affect your property tax bill. Here are some tips to stay engaged and informed:
- Review your tax notices: Carefully review your tax notices each year to understand the non-ad valorem assessments on your property. Contact your local property appraiser's office or tax collector's office if you have any questions
- Attend public hearings: Local governing boards and taxing authorities often hold public hearings to discuss non-ad valorem assessments and their related projects. Attend these meetings to voice your concerns or learn more about the assessments
- Monitor assessment periods: Keep track of assessment periods for non-ad valorem taxes to ensure you're aware of any changes or new assessments that may impact your property tax bill
- Stay updated with local government: Follow your local government's website, social media, or electronic mail updates to stay informed about changes in non-ad valorem assessments or other tax-related matters
Non-ad valorem taxes are special assessments levied on properties for specific services or improvements, unrelated to the property's assessed value. As a property owner, it's crucial to stay informed about these taxes and how they affect your overall tax bill. By understanding non-ad valorem taxes, attending public hearings, and staying engaged with your local government, you can better manage your property taxes and ensure you're paying your fair share.