Here is a great article explaining what a millage tax is, also known as a property tax in Florida.
http://www.floridapoliticalpress.com/2012/10/30/what-is-a-millage-tax/
What is a Millage Tax - from Florida Political Press - Written for Seminole County (FL) property owners
By Ed Ghiglieri
(TIP: First, Florida residents and home or commercial property owners, get out your house's property tax TRIM Notice from your County Property Appraiser (estimates of pending millage rates and property values for the coming tax year) OR your most recent actual Property Tax Bill (from the Tax Collector). Both is better. Millage rates don't affect renters except that the tax WILL be included in the house or business building rent you pay to the owner. If the local city, county or government agency increases a millage rate, your rent will probably go up.)
Recently the Seminole County School
Board proposed “up to a 1 mill” increase on property taxes in Seminole
County to increase the school revenues. In talking to residents,
homeowners, business owners and renters of all types there is some
confusion of what a millage tax is.
I have been told from some people that it’s a mileage tax on your cars and it’s used for road work and your auto insurance company reports your annual mileage to the property appraiser. It’s not that!
As defined by Webster’s, it’s a “a rate (as of taxation) expressed in mills per dollar”. The mill(s) are basically a percentage, where
It is important to realize that millage is another word for tax, and everyone who lives or shops in Seminole County pays it. Business’s pass this on in the form of higher prices for good and services, apartment owners pass this on in the form of higher rents. So as the millage rate increases. the property tax is raised and this has to be paid or the County can/will confiscate your property.
The Oviedo city millage rate is 5.1697 mills, (4.8626 mills with the Oviedo debt service rate of .3071 mills), which has been unchanged for a number of years. The county levy is 4.8751 mills and by a citizen approved initiative we also pay 0.1700 mills for Natural Lands and Trails.
St. Johns Water Management adds 0.3313 mills and the School board gets 7.7220 mills. The total millage paid on property in the City of Oviedo limits is 18.2681 mills. There are basically six taxing authorities for a property in Oviedo. The millage rates cited in this letter come from the Seminole County Tax Collectors office on October 7th, 2012.
This is not meant to be a math test so keeping the numbers simple is important. The average value of a home in Seminole County $100,000 but quite often in cities the values are higher. The examples used below are from actual properties in Oviedo and the values come from the Seminole County Properly Appraisers office.
I’m going to use a $200,000 home value. Privately owned homes enjoy a $50,000 exemption on value for taxes by five of the authorities and this is enshrined in the Florida Constitution. The 6th authority, the school board, reduces the homestead to only $25,000, and this is also in the Florida Constitution.
Without homestead exemption on a rental house for example the tax will be $3,650, with the homestead it come to $2,933. In fact if all taxing authorities used the same $50,000 the property tax would be $2,740. The one mill increase on this property will cost the homeowner from $167 to $175. Big deal a lot of people say.
A local day care facility that has a value of $800,000 now pays $14,600 and does not qualify for any exemptions. The total bill with the new 1 mill tax will now be $15,400 or $800. Who pays the increase? The facility will now have to raise rates and as we know when rates go up, customers look elsewhere or do without.
A local apartment complex that has a value of $16,000,000 now pays $292,000 and does not qualify for any exemptions. The total bill with the new 1 mill tax will now be $308,000 or $16,000. Who pays the increase? The facility will now have to raise rents and as we know when rates go up, customers look elsewhere or do without.
Now using a strip mall complex that has a value of $7,000,000 now pays $128,800 and does not qualify for any exemptions. The total bill with the new 1 mill tax will now be $135,800 or $7,000. Who pays the increase?
So what is being portrayed as a pizza or a couple of latte’s a week is actually greater than that. I live and shop in Seminole County so I will have to pay the increased prices for good and services. Maybe the increases will be low but what business is going to lose money on every sale?
It should be noted that churches and gov’t property are tax exempt.
The 1 mil increase is really a 13% tax increase compared to the current rate. I have no experience as a professional banker or tax advisor. I just know how to do math and the numbers are shocking. The school board does assert that without this increase our property values will not go up. Our property values have gone down and yet we have A schools.
Having experienced a number of economic downturns in my life, one thing I have learned is to not raise taxes during the recovery. All of the taxing authorities will see increased revenue as our property values recover, it may take a while. The cities and county in Seminole have done the same thing people and property owners have done – live within our means and tighten the belt. Shouldn’t the same lesson be learned by the School Board? I cannot recall a time where I have ever received a 13% pay raise.
I would also like to add that the vote on the school board was 3-2. Tina Calderone, Karen Almond and Dede Schaffner voted for the tax increase. Sylvia Pond and Diane Bauer voted against, and in fact, Diane is the senior member of the school board.
Lastly I encourage all parent and property owners to attend the school board meetings the 1st and 3rd Tuesday of each month. A lot goes on and there is time for public comments.
