The tax calendar, tax certificates and tax deeds
Florida property taxes run on a fixed yearly calendar. Know these dates.
The calendar
| Date | What happens | Source |
|---|---|---|
| January 1 | Assessment date. Value and exemption status are fixed as of this day. | 192.042(1) |
| March 1 | Deadline to apply for exemptions such as homestead | 196.011(1)(a) |
| November 1 | Taxes are due and payable (or as soon as the certified roll reaches the tax collector) | 197.333 |
| November to February | Early-payment discounts | 197.162(1) |
| April 1 | Unpaid taxes become delinquent (or 60 days after the tax notice was mailed, if that is later) | 197.333 |
Real property is valued as it stood on January 1 (192.042(1)). An improvement that is not substantially completed on January 1 gets no value that year. A house finished on January 15 is taxed as a vacant lot for that year.
Taxes are paid in arrears: the bill mailed in the fall covers the calendar year that is ending. That is why the seller usually owes the buyer a proration credit at closing (see Unit 14).
Early-payment discounts
Florida rewards paying early (197.162(1)):
| Paid in | Discount |
|---|---|
| November | 4% |
| December | 3% |
| January | 2% |
| February | 1% |
| March | none |
The 4% also applies within 30 days after the original tax notice is sent, even if that runs past November. Paying the full amount in March avoids delinquency but earns no discount. Taxes not paid by the end of March become delinquent on April 1.
Example: a $3,850 bill paid in November is reduced by $3,850 × 0.04 = $154, so the owner pays $3,696.
The tax lien
Property taxes are a first lien, superior to all other liens, from January 1 of the year they are levied until they are paid (197.122(1)). They come ahead of a mortgage recorded years earlier. The statute also says owners are held to know that taxes are due and payable every year, so an owner cannot simply wait for someone to remind them.
Tax certificates
When taxes go delinquent, the tax collector holds a sale of tax certificates. A tax certificate is not a deed. The buyer pays the delinquent taxes and in return holds a lien that earns interest.
- Bidders compete by asking for the lowest interest rate, bidding down from the maximum in quarter-percent steps (197.432(6)).
- The maximum rate is 18% a year (197.172(2)).
- If nobody bids, the certificate is struck to the county (197.432(6)).
- The certificate can be redeemed at any time after it is issued and before a tax deed is issued, by paying the tax collector the face amount plus interest, costs and charges (197.472(1)).
- A certificate is canceled 7 years after it was issued if no tax deed application or other proceeding has been started (197.482).
Tax deeds
If the owner does not redeem, the certificate holder may apply for a tax deed after 2 years have passed since April 1 of the year the certificate was issued (197.502(1)). The application goes to the tax collector, and the clerk of the circuit court advertises and conducts the tax deed sale (197.502(5)). The winning bidder at that sale receives a tax deed to the property.
The process is long by design. The owner has years and several notices before the property can be sold.
Exam tips
- Assessment date: January 1. Due: November 1. Delinquent: April 1.
- 4, 3, 2, 1: November through February.
- A certificate gives a lien and interest. A tax deed gives title.