As you know, researching property prospects involves time, effort, and a keen eye on the market to understand your potential property purchase, which also means learning about subsequent costs to maintain thereafter, especially if you’re interested in gated communities and specific districts.
Ad valorem taxes
Ad valorem is a Latin phrase that means “according to value.” This tax can be applied to vehicles, consumer goods, and most commonly real estate. In other words, ad valorem taxes are based on the value of an item at the time of the transaction or in this case property value. These taxes are typically imposed by local jurisdictions, counties, and school districts and are assessed annually to determine current real estate value. This also provides funding to local and state governments. So if you plan on making renovations after purchasing real estate, this could potentially increase your property value as well as ad valorem taxes down the line. The National Property Tax Group provides deadlines for each state to submit their personal and real estate property taxes that can be found here in addition to when bills are issued.
Non-ad valorem taxes
Non-ad valorem taxes are service charges or special assessments that may benefit residents. Examples of non-ad valorem taxes include improvements to landscaping, security, waste disposal, street light renovations, road repairs, and most notably Community Development Districts (CDD). You can spot these taxes on your TRIM and revenue notice, or tax bill.
Community Development Districts (CDD)
Community Development Districts are specialized governmental units established that provide long-term and specific needs for its residents to increase the quality of life, maintain community infrastructure, and support growth. Florida, in particular, has nearly 800 active community development districts registered in their system and over 200 community districts in redevelopment. If you’re looking into properties in these types of communities, you will most likely pay higher taxes, but how much you pay on these taxes can vary a great deal.
Florida CDDs Established in October 2021
|District Name||County||Date Established||Website|
|Hawthorne Mill North Community Development District (2021)||Polk||10/4/2021||hawthornemillnorthcdd.net|
|Scenic Terrace South Community Development District||Polk||10/5/2021||www.scenicterracesouthcdd.com|
|Silver Oaks Community Development District||St. Lucie||10/13/2021||silveroakscdd.net|
|Somerset Bay Community Development District||Hernando||10/13/2021||Not on File|
|Merrick Square Community Development District||Broward||10/20/2021||merricksquarecdd.net|
|Lake Hideaway Community Development District||Hernando||10/27/2021||Not on File|
Redeveloped Florida community district in 2021
|District Name||County||Date Created||Website|
|North Beach Community Redevelopment Agency||Miami-Dade||2/10/2021||www.miamibeachfl.gov/northbeachcra|
Source: Florida Department of Economic Opportunity
As you explore iMapp, you can find out whether a property listing is a part of a community development district as well as the previous ad valorem and non-ad valorem taxes paid. You can research all of these districts, what they are doing and how it will affect you as a homeowner. Hopefully, this tool will make it easier for you to make your big decision and avoid surprise tax bills!