FL PL, Level 18 - Taxes Affecting Real Estate

ad valorem

taxes based on the assessed value of a property

assessed value

the value of a property based on the value of other properties in the area, plus any improvements made to the home since purchasing it; can also take into account various property traits like location, size, condition, materials, square footage, year built, etc.

assessment limitation (save our homes benefit)

limits how much the assessed value of a homesteaded property can increase per year; also known as the Save Our Homes amendment to the Florida Constitution

exempt properties

properties that belong to churches and nonprofits; may be subject to taxes, but the property owner is not obligated to pay them

immune properties

city, county, state, and federal government properties; do not get assessed, and the property owner does not have to pay property taxes

just value

the fair and reasonable value according to objective valuation methods; corresponds to market value

mill

1/1000 of a dollar, or $0.001; used to express tax rate in Florida

special assessment

additional taxes levied on the homeowners in a neighborhood or area to pay for improvements that benefit the people living there

tax rate

the percentage of the value that is taxed; expressed in mills in Florida; used in property tax calculations

taxable value

the assessed value of a home minus homestead exemptions; used in property tax calculations

capital gains

the increase in the value of an asset; offset by the capital gains exemption in the sale of a principal residence

debt service

amount of money needed for a specific time period in order to cover the payment of principal and interest portions on a loan

installment sale

buyer pays the seller for a property in pre-determined chunks for a pre-determined length of time, and the seller holds the title until the property has been fully paid for; also known as contract for deed

like-kind exchange

the tax-deferred sale or exchange of one investment property for another similar one

taxable income

the amount of income that can be taxed, after all deductions and any other adjustments have been made