Yes, it is true. Your annual property taxes can be DOUBLE if you pick the wrong, HIGH TAX city in Lake County to buy a house, rental property or commercial property.
Cost Savings tip for buying a home or rental or commercial property in Lake County, FL!
Since Florida has no income taxes, local governments rely more on property taxes to fund programs. There are 14 cities in Lake County (plus unincorporated land in Lake County that pay County rates, not city rates).
The Lake County property appraiser, Carey Baker, issued this worksheet (below) of property tax millage rates for all Lake County cities.
You can see some, like Tavares, Eustis, Umatilla or Howey, have DOUBLE the property tax millage rates of other cities.
Property taxes are based upon two components - the millage rate like .007 or .003, and the valuation set by the property tax appraiser, Carey Baker. Valuations are based upon market rate, and even if a city keeps the same millage rate, but the valuation jumps 10%, your tax bill will jump. More conservative cities will "roll back" the millage rate to offset leaping valuations, but not all do. Less ethical (in my opinion) city officials will brag about reducing millage rates slightly, but not disclose that because valuations have increased MORE, your tax bill will go up. Conservative officials will reduce millage rates to the "roll back" millage rate, which, when multiplied by the increased valuations, will result in the same, not higher tax collections as the prior year. But, if they don't reduce millages to the roll back rate, and valuations go up, you will most always get a HIGHER TAX BILL.
Some people can afford higher taxes for city amenities like free concerts (aka Roman Circuses ) and others cannot. I had one Tavares resident rant at me for recommending the Tavares City Council REDUCE property tax millage rates. She LIKES being taxed more to pay for the free concerts and free stuff, fancy buildings, etc. She could clearly afford it. But others cannot.
So if you don't want to pay higher property taxes, you need to examine property tax millage rates for all cities before you buy a property. Don't be surprised like the many buyers of The Villages homes located NOT located in low tax Sumter County, but high Tax Lake County in Fruitland Park. We have videos of 100+ Villages homeowners who naively bought in higher tax Lake County, showing up at the Fruitland Park (and County Board) meetings to voice surprise and anger. They since have elected two of their Villages residents to the Fruitland Park City Council to control costs. The realtors never warned them about the higher Florida or Lake County property taxes or that no income tax Florida uses property taxes to fund many expenses like schools, roads, fire, etc. The Villages is a special case because they also have CDD costs and amenity costs paid to the Villages, PLUS the Fruitland Park and Lake County taxes. In my opinion, some of the Villagers were naive about how taxes are levied on Florida property and spent too much on a fancy home without understanding the tax loads.
Owners of second (not homesteaded) homes or commercial property have no "Save our Homes" cap on tax increases like homesteaded homes do, so they pay taxes on the full increase in valuations. That can be costly, with tax valuation increases being 10-20% in some cities. (New homes start right out with valuations based on purchase price). Nearby older homes that were homesteaded can have much lower taxes due to SOS caps.
So include the information below in your decision where you buy property in Lake County and greatly reduce your property taxes! REALTORS won't tell you this or how to properly estimate future property taxes for buying a used or new property. They will show you the old rates (of used properties), without showing how your purchase price may cause the tax valuation to be greatly higher.
Shared by CAREY BAKER - Property tax Appraiser for Lake County, Florida in Oct. 2020
Here are the official millage rates (property tax rates) in Lake County. (2020)
Remember your property tax is based upon these millage rates TIMES the valuation rate set by the Property Tax Appraiser.
LAKE COUNTY, FL COUNTY gov't- 6.4617 - Notice they are almost double of some cities. You pay either the County or the City tax, depending on which tax "authority" area your property is located in. Caveat Emptor.
The millage rates below that are labeled as "Rollback" rates mean the millage rate was reduced by the City Council or Board to offset increased valuations; thus total taxes due should be similar to the prior year.
State school property millage rate (added to city or county millage) - 3.7010
Local school property millage rate (also added to the city or county millage rate) - 2.9980
CITIES
Astatula- 7.5000
Clermont- 4.2061
Eustis- 7.5810
Fruitland Park- 3.9134 3rd lowest rate in County!!
Groveland- 5.2000
Howey- 7.5000 adopted "Below" Rollback rate!!!!
Lady Lake- 3.3962 2nd lowest rate in County!!
Leesburg- 4.1086 adopted Rollback rate!!!
Mascotte- 7.1323 adopted Rollback rate!!!
Minneola- 6.1000 adopted "Below" Rollback rate!!!
Montverde- 2.8300 Lowest rate in County!!
Mount Dora- 5.9603 adopted Rollback rate!!!
Tavares- 6.9000
Umatilla- 7.1089
Special District Millage Rates (also added to the city or county millage rates)
North Lake Hospital Dist.- .8950 Rollback rate!!!
Lake Co Water Authority- .3368 Rollback rate!!!
St. Johns Water Management Dist.- .2287 Rollback rate!!!
S.W. Fl Water Management Dist.- .2669 Rollback rate!!!
These numbers do not include separate fire, waste, CDD fees, etc that might be included in your property tax bill as a separate line item.
Vance Jochim
[email protected]
YouTube Channel "FiscalRangersFlorida"
