Florida has a very comprehensive process for the collection and distribution of Property Taxes. The Florida Constitution and Statutes govern the Tax Collector, who collects property taxes at the local level, providing revenue for cities, counties, and school districts.
Property taxes are levied annually against real estate and tangible personal property. Local Property Appraiser’s determine the assessed value of property as of January 1st. The assessed value minus any applicable exemptions determines the taxable value. To determine eligibility for any exemptions, please visit the Property Appraiser’s website at www.citruspa.org.
Once the taxable value is set, local governments, including county commissions, school boards, and city councils determine the millage rate, or the amount of tax per $1,000 of assessed value. Tax bills are issued annually and become payable on November 1st. Early payment discounts are available for those who pay before the due date in March of the following year.
Every year, some property owners fall behind on their property tax payments. When this happens, Tax Collectors follow a structured process to recover these unpaid taxes to ensure local governments have the resources to provide essential public services. Florida’s system for collecting delinquent real estate taxes involves interest and fees that are included in tax certificates and potential property sales.
Once real estate taxes become delinquent on April 1st of the year following the year in which taxes were assessed, interest begins to accrue. In mid-April, advertising fees are added. If the taxes are not paid by the last business day of May, Tax Collectors hold a tax certificate sale, which allows investors to pay the delinquent taxes on behalf of the property owner. During the certificate sale, investors bid on the interest rate they are willing to accept in exchange for paying the unpaid taxes. The bidding starts at 18% and the investor willing to accept the lowest interest rate wins. The end result is the issuance of a tax certificate to the winning bidder. To redeem the tax certificate and satisfy the lien, property owners must repay the delinquent taxes, interest and fees.
Taxes collected during the tax certificate sale are distributed to the taxing authorities. During the 2024 tax certificate sale, 100% of the certificates eligible for purchase were sold, and all taxes and fees were collected. The Tax Collector’s office sends multiple notices to property owners. The delinquent real estate accounts are advertised in the newspaper.
While Florida’s system for collecting delinquent property taxes ensures that public services remain funded, the process emphasizes the importance of timely tax payments to avoid penalties, fees, interest, and the potential loss of property.
For additional information regarding property taxes, please visit the Tax Collector’s website at www.citrustc.us or visit the Florida Department of Revenue’s website at floridarevenue.com.