As Florida property taxes are set by individual counties, taxes vary from county to county to coincide with a local area’s growth rate and infrastructure needs. This is why homes in large metropolitan areas such as Miami are more likely to be taxed higher than Sarasota real estate, even though the properties are of comparable market value.
What factors contribute to higher property taxes? Property taxes help cover the cost of a education, police, fire, and medical services, repair and construction of new roads and other local projects in a particular county. As cities expand, more funds are required to provide the services their population needs. Sometimes local governments fail to properly assess the growth and expansion of their area, requiring that property taxes be increased to meet the costs of local services. Areas experiencing rapid growth and expansion will more likely have higher property tax rates to cover higher infrastructure costs.
How Are Property Taxes Determined?
Property taxes are determined by individual counties according to home location and market value. Local governments set the “millage rate” (rate of tax per thousand dollars of taxable value) for these taxes in conjunction with the county’s proposed budget and local real estate value. As a result, no single tax rate applies across the board to properties in the state. Each district has a home appraisal office that assesses the fair market value of residential properties in their area and calculates property taxes.
In the state of Florida, property appraisers assess homes at a “just value,” which is generally between 85 to 95% of a property’s contract price, in the event home owners recently purchased their home, or what it may sell for in the near future. Most Florida counties use just value percentages when assessing home value to account for such extras as real estate commissions, closing fees, transfer taxes, etc. that homeowners have to pay when purchasing a home but have no impact on a home’s actual value.
What is Sarasota’s Property Tax?
In Sarasota County, homeowners pay approximately 0.89% of the market value of their home in property taxes. A home with a median value of $235,100 would cost you a median tax of approximately $2,095 annually. Compared to other U.S. counties, Sarasota County median property taxes rank fairly high, with the county placing 404th out of a total of 3,143 counties countrywide. In terms of annual income, Sarasota County residents pay approximately 3.77% of their annual income in property taxes, ranking 291st out of 3,143 U.S. counties.
The good news is that Sarasota homeowners have the option of appealing a property tax they feel exorbitantly high. Any time a homeowner feels his or her property was assessed incorrectly, he or she can appeal the tax decision and request another assessment in an effort to lower his or her taxes. Once a final assessment has been made and taxes determined, homeowners are responsible to see taxes are paid. Sarasota property tax is levied on properties, not individuals. Failure to pay property taxes could result in a tax lien placed on the title of your property. Such liens remain until taxes are paid, despite a transfer or sale of the property or your declaring bankruptcy. Extreme tax delinquency can lead to the Sarasota County Tax Board seizing your property and selling it at a tax foreclosure auction.
What’s the Sarasota County Homestead Exemption?
Claiming a homestead exemption can help lower property taxes. Homeowners who register their property as a primary residence and meet the qualifications for homestead can benefit from reduced appraisal values that can help lower their tax rate.
To qualify for homestead exemption, homeowners must be permanent residents of the state, hold the legal title for their property, have said title officially recorded in the Sarasota County records and be residing in their property as their permanent residence. Homestead exemption applications can be submitted to the County Assessor’s Office for evaluation and approval. Additional property tax exemptions may also apply to low income seniors, individuals who are handicapped, widows, and widowers.
How Do Sarasota Property Taxes Compare to Other Florida Cities?
Sarasota County is not alone when it comes to having a high property tax rating. Many Florida counties have property tax ratings that are comparable to or exceed that of Sarasota County. Miami-Dade County is the top property tax collector in the state with residents paying an average property tax of approximately $2,756.00 annually or 1.02% of their home value.
The following gives greater insight into the median property taxes of other counties in the state, ranging from highest to lowest.
Top 5 Florida Counties Paying Highest Median Property Taxes
1. Miami-Dade – major cities: Miami, Hialeah, Miami Beach, Miami Gardens, Coral Gables – $2,756
2. St. Johns – major cities: Jacksonville, Orlando, Daytona Beach, Melbourne, Gainesville – $2,702
3. Palm Beach – major cities: West Palm Beach, Boca Raton, Boynton Beach, Del Ray Beach – $2,679
4. Monroe – major cities: Key West, Marathon – $2,673
5. Broward – major cities: Ft. Lauderdale, Pembroke Pines, Hollywood, Miramar, Coral Springs – $2,664
Top 5 Florida Counties Paying Lowest Median Property Taxes
1. Dixie – major cities: Cross City, Horseshoe Beach – $503
2. Holmes – major cities: Bonifay, Ponce de Leon – $555
3. Jackson – major cities: Marianna, Graceville, Malone, Sneads – $630
4. Hamilton – major cities: Jasper, Jennings, White Springs – $668
5. Washington – major cities: Chipley, Vernon – $687
On average, Florida residents pay an estimated 0.97% of their property’s market value in property taxes annually. Florida ranks 23rd out of a total of 50 states when it comes to the amount of money homeowners pay for property taxes.
Property tax is an important factor to consider when deciding where to buy. Buyers who are hesitant to buy into an area with higher property taxes, such as Sarasota, should consider the benefits of better public services and infrastructure due to the city having sufficient funds to cover these needs. Homesteading also helps to drastically reduce property taxes, making the move worthwhile. By considering all factors to purchasing residential real estate in Sarasota, you can make good home buying decisions that will benefit your future.
2 Point Highlight
Buyers who are hesitant to buy into an area with higher property taxes, such as Sarasota, should consider the benefits of better public services and infrastructure due to the city having sufficient funds to cover these needs. After establishing permanent residency in Sarasota, you can also apply for homestead which helps to reduce property taxes drastically, making the move worthwhile.
