What will My Taxes Be? Use This Cape Coral Tax
Estimator.
This Tax
Estimator is a tool for prospective home buyers for estimating what
the taxes will be on a particular piece of property. As with any such tool
we are making assumptions about the future nature of the real estate market
and what tax rates will be assessed by the various taxing authorities in
Lee County. Please note the following:
The sales price of an individual property
does not directly affect the assessed value used to calculate taxes.
Rather, the sales of like properties throughout the year as well
as other statistical and valuation methods are used to create the
assessed value. As long as the Estimated Sales Price entered is a
reflection of the market, the assessed value used in the calculation
will be a reasonable estimate for this purpose.
Likewise, if the Estimated Sales Price is significantly lower or higher
than what other similar properties have sold for the results of the
calculation will not be a reasonable estimate.
Typically, real estate transactions include costs such as real estate
agent fees. When sales are used as part of determining assessed values
an adjustment is made for those fees. For this Estimator we used 90%
of the entered sales price to establish an assessed value. Your actual
assessed value to sales price ratio may be higher or lower than this
amount.
The actual tax rate used to calculate property taxes is set every year
by the various taxing authorities in Lee County. Historically tax rates
have fluctuated within a fairly narrow range. For the purposes of this Estimator we
use the tax rate from the immediately previous tax year. The actual
tax rate may differ based on the decisions made by those taxing authorities.
This Reform was Passed
2007 Property Tax Reform
Proposed Constitutional Amendment
SJR 2-D
Chapter 2007-339, Laws of Florida
Frequently Asked Questions
Note: These answers provide a general overview of some of the provisions
of the proposed constitutional amendment and do not cover all provisions
and exceptions contained in the amendment.
Background
Property taxes are levied by cities, counties, school districts, and
independent special districts.
How much property tax you pay is determined by:
1) The property tax rate that local government charges, and
2) The taxable value of your property (the value you pay tax on, after
assessment limitations and exemptions).
The property tax rate is called the "millage rate" and is
expressed in "mills." A mill is $1 per $1000 of property value.
So, for example, a millage rate of 15 mills would mean you would pay
$1500 per $100,000 of the property’s taxable value
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What Is "Save Our Homes"?
Save Our Homes" (SOH) spearheaded by Mr. Wilkinson, 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 assessed 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, whichever is less. The property’s market value may differ
from SOH assessed value. SOH assessed value will never be greater than
market value.
What properties are affected?
Homestead exempt properties only.
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.
Does a house with partial homestead qualify?
Yes, but only the portion applicable under the homestead guidelines.
Does SOH apply to homestead parcels with multi-buildings?
Yes, but only the portion applicable under the homestead guidelines.
Does SOH apply to homestead parcels with agricultural classification?
Yes. The residence and curtilage applicable to the homestead portion
qualify.
What is curtilage?
The land and structures, on an agricultural classified property, immediately
surrounding the homesteaded residence.
What happens when I sell my property and buy a new home?
When a homestead property sells, the SOH assessed value returns to market
value in the year following the sale. That market value assessment then
becomes the base value for SOH purposes for the new owner/homestead applicant.
What happens to the value of my homestead property when I make additions
or improvements?
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.
What happens if errors are made in arriving at any annual assessment
due to a material mistake of fact concerning an essential characteristic
of the property?
The assessment must be recalculated for every such year and corrected
only for the current assessment. Florida Supreme Court case of
Smith v. Welton, 729 So. 2d 371 (Fla. 1999).
Example of SOH scenario involving the assessment of a duplex with a Homestead:
Base Year: Correct Assessment
1) 1998 market value: $50,000
(1st yr homestead assess)
-$25,000
homestead exemption
=$25,000
taxable value (correct)
2nd Year: SOH Incorrect as Exemption Was
Applied To Entire Duplex Value
2) 1999 market value increases: $80,000 (1st year of SOH cap)
$51,500
SOH Value (1998 Assess. +3%
-$25,000
homestead exemption
=$26,500
taxable value (incorrect)
2nd Year: If SOH Was Correct Exemption
Applied Only to 1/2 Duplex Value
3) 1999 duplex market value: $80,000(1st year of SOH cap)
$65,750
SOH Value (1998 assess. +3%)
-$25,000
Homestead Exemption
=$40,750
taxable value (correct)
In #3 the correct 1999 SOH value of $65,750
is calculated as follows:
1998 value of 1/2 duplex = $50,000/2 = $25,000
1998 SOH capped 1/2 duplex value $25,000 + 3% =$25,750 1999 SOH
capped value
1999 value of uncapped 1/2 duplex = $80,000/2 +$40,000
=$65,750
assessed
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.
What is the "recapture" rule?
Governor Chiles and Cabinet approved a Department of Revenue rule in
1995 directing property appraisers to raise the assessed value of a qualifying
homestead property by the maximum of 3% or the percentage change in the
Consumer Price Index (CPI), whichever is less, on all properties assessed
at less than full market value whether or not that property’s value
increased during the calendar year.
For example, Property A’s market
value increases by 10 % this year. As a homestead property, the property
appraiser can only increase the value by 3% or CPI, which ever is less
under SOH.
In the next year, Property A’s market
value did not change. Since its assessed value under SOH remains under
market value, the property appraiser must increase the assessed value
by 3% or CPI, which ever is less, to bring its value closer to full
market value.
In 2004, the SOH Amendment protected over 165.1 billion dollars of homeowner’s
value from taxation statewide. Just in Lee County, the 2005 protected
value exceeded 8.5 billion dollars.
If you require additional information regarding "Save Our Homes" please
contact: exemptions@leepa.org
_______________________________________________________________________________________________
WHAT IS MARKET VALUE?
Florida Law requires that the just value of all property be determined
each year. The Supreme Court of Florida has declared "just value" to
be legally synonymous to "full cash value" and "fair
market value."
The fair market value of your property is the amount for which it could
sell on the open market. The Property Appraiser analyzes these market
transactions annually to determine fair market value as of January 1.
It’s no small task, however, since fair market value must be determined
for every piece of property in Lee County each year - over 478,000 parcels
of land, including thousands of acres of citrus, pasture and farmland,
buildings and improvements, and ±60,000 tangible personal property
accounts. The Property Appraiser must also oversee ±100,000 homestead
exemptions as well as widow, widower and disability exemptions. In addition,
exemption eligibility must be determined for certain religious, charitable,
educational, and governmental use. Finally, Agricultural classifications
are reviewed annually.
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HOW IS PROPERTY APPRAISED?
There are three approaches to value stipulated in the Florida Statutes:
1.) "Direct Sales Comparison", 2.) "Replacement Cost",
and 3.) "Capitalization of Income". In Lee County, we use a
computer assisted mass appraisal system that incorporates elements of
all three approaches to value. Please keep in mind, however, that the
best evidence of the fair market value is when several properties similar
to yours sell.
The property’s fair market value can be determined employing one
or more of three different methods.
The first method is to find properties
like yours which have recently sold. However, their selling prices
must be analyzed very carefully to get the true picture. One property
may have sold for more than it was really worth because the buyer was
in a hurry to occupy it and would pay any price to get in. Another
may have sold for less than it was really worth because the owner needed
cash right away, so was willing to sell to the first buyer making an
offer. The Property Appraiser must always consider such over or under
sales price to arrive at a fair valuation of your property.
The second method is based on how much
money it would take, at current material and labor costs, to replace
your property with one just like it. If any improvements are not new,
the amount of depreciation must also be determined.
The final method is used in addition to
the other two if you own property which does, or could, provide an
income, such as an apartment complex, retail store space, or office
building. In that case, the Property Appraiser must consider such dollar
facts as your revenues, operating expenses, insurance, maintenance
costs, degree of financial risk incurred by owning the property, and
finally, the return most people would expect to receive on that kind
of property.
WHY DOES APPRAISED VALUE CHANGE FROM YEAR
TO YEAR?
When the market value changes, naturally so does appraised (just) value.
For instance, if you were to increase the total market value of your
property by building a swimming pool in your backyard, the appraised
value will increase proportionately. Similarly, should your property’s
value be decreased by fire or storm damage, the appraised value will
decrease to reflect the downward effect on your property’s market
value. In addition, the entire community’s economy, as well as
the forces of supply and demand, will affect your property’s appraised
value.
The Property Appraiser does not create
this value: he simply discovers it as it exists and values the property
accordingly. Buyers and sellers set value by their transactions in
the market place.
WHAT IF I DISAGREE WITH THE PROPERTY APPRAISER’S
MARKET VALUE?
The Florida Constitution and Statutes require that we make appraisals
at market value. Annually in August, the Property Appraiser sends
the Notice of Proposed Property Taxes (TRIM Notice) to all property owners. Read
this Notice carefully – important information is provided regarding
the time frame allowed for filing appeals with the Value Adjustment Board
should you wish to dispute the value of your property. If you agree
that the value of your property is at least as much as shown in the notice,
you do not have to do anything. However, if you have any questions about
this value, we encourage you to contact this Office to discuss values
with the property analyst familiar with your parcel. Please
be sure to verify your homestead exemption status as it is reflected
on the TRIM Notice. If you have any questions, you must contact
the Appraiser’s Office immediately to insure that you receive your
exemption for the tax year.
If, after contacting us, you still believe
that the appraisal exceeds the market value of the property, you may
file a petition before the Value Adjustment Board ( VAB ). This Board
is created by State Law and is comprised of three members of the Lee
County Commission and two Members of the School Board. Petitions to
the Board are available from the Property Appraiser’s Office.
The Board appoints Special Masters, who are qualified real estate appraisers
or attorneys, independent of the Property Appraiser’s Office,
to conduct valuation hearings The Special Masters are appointed only
to determine is whether the appraised value of the property exceeds
its market value as of January 1. Further details concerning this process
can be obtained from the Property Appraiser’s Office or on the
TRIM Notice.
WHAT IS "SAVE OUR HOMES"?
"Save Our Homes" is a constitutional benefit approved by Florida
voters in 1992 which places a limitation of 3% on annual assessment increases
on Homestead properties. For all property granted Homestead Exemption
in the prior year, that assessed 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, whichever is less.
Exceptions to that limitation include new
additions or construction which escaped taxation in the past. Another
exception would occur when a homestead property sells: the assessed
value returns to the fair market value in the year following the sale.
That fair market value assessment then becomes the base value for "Save
Our Homes" purposes for the new owner/homestead applicant .
DOES THE PROPERTY APPRAISER LEVY OR COLLECT
TAXES?
No!! The Property Appraiser only appraises property and is neither a
Taxing Authority nor the Tax Collector and has nothing to do with the
amount of taxes levied or collected. However, as a property owner, you
are also interested in how the amount of taxes you pay is determined.
Three separate government entities each
having unique and distinct duties involved in producing your November
tax bill. First, the Property Appraiser annually appraises all property
in Lee County at the market value as of January 1. Next, each taxing
authority within Lee County sets their own millage rate based on the
amount of tax dollars necessary to fund their annual budget. Lastly,
the Tax Collector takes the amount of taxes due in order to bill and
collect all taxes levied within Lee County.
Calculating the amount of taxes due is
done by the Property Appraiser prior to sending the information to
the Tax Collector.
The millage rate is multiplied by the value
of the property then divided by 1,000 to determine the amount of taxes.
The reason: "millage rates" are in dollars per thousand
of assessed value. You may also note that certain districts marked
with an asterisk do not deduct the Homestead Exemption value prior
to calculating the amount of taxes due. These districts are authorized
by Florida Statute to use assessed value without exemptions in their
tax calculations.
The example shown above shows the calculation
for ad valorem taxes only. However, there are several districts in
Lee County that levy non ad valorem assessments for the benefit of
the residents in those districts. These assessments are not required
to be shown on the Notice of Proposed Taxes but will appear on your
final tax bill .
WHAT IS AN "AG" CLASSIFICATION?
An agricultural classification is the designation of land by the Property
Appraiser, pursuant to F.S. 193.461, in which the assessment is based
on agricultural use value.
HOW DO I QUALIFY?
To qualify for Agricultural classification, a return must be filed with
the Property Appraiser between January 1 and March 1 of the tax year.
Only lands which are used for bona fide agricultural purposes shall
be classified agricultural. "Bona Fide Agricultural Purposes" means
good faith commercial agricultural use of the land.
The Property Appraiser, prior to classifying such lands, may require
the taxpayer or the taxpayer’s representative to furnish such information
as may reasonably be required to establish such lands are actually used
for a bona fide agricultural purpose.
The Property Appraiser may deny agricultural classification to the following
lands:
Lands which are not being used for or diverted
from agricultural use
Land that has been zoned non-agricultural at the request of the owner
Land on which a sub-division plat is recorded
Land which is purchased for a price three or more times the agricultural
appraisal placed on the land
WHAT IS TANGIBLE PERSONAL PROPERTY?
Tangible Personal Property refers to all assets used in a business or
rental activity that are subject to an ad valorem assessment. More
specifically, it is furniture, fixtures, tools, machinery, household
appliances, equipment, signs, leasehold improvements, supplies, leased
equipment -- whatever is used to generate income. Florida Statute
193.052 requires that all tangible personal property be reported
each year to the Property Appraiser’s Office. Anyone in possession
of assets on January 1 who has either a proprietorship, corporation
or is a self-employed agent or contractor, must file each year. Property
owners who lease, loan or rent property must also file. The deadline
for filing a timely return is April 1 of each year. For untimely
filings, Florida Statutes provide guidelines for the penalties that
may be applied: 5% for each month the return is filed late, 15% for
unreported property and a 25% penalty if no return is filed. Further
information regarding Tangible Personal Property may be obtained
by writing or calling our Office.
A FINAL NOTE
My staff and I are at your service to answer any questions you may have
concerning the Property Appraiser’s Office. It is my goal as
your elected Property Appraiser to provide fair appraisals for all
properties, whether large or small. We’re here to serve you.
Respectfully,
Kenneth M. Wilkinson, C.F.A.
Lee County Property Appraiser |
