Florida Property Taxes Explained

Property taxes are a reality for all property owners, yet many homeowners do not fully understand how those taxes are calculated or who determines them. This paper explains how property taxes are structured and administered in the State of Florida, with a focus on Collier County.

In general, the State of Florida does not levy property taxes. Instead, property taxes are imposed by local governments and special taxing districts that provide services within a county. These local entities determine their own budgets and corresponding tax rates, subject to state laws designed to ensure transparency and public participation.

Taxing Districts in Collier County — What You Should Know

In Collier County, a taxing district is any governmental or special unit with the legal authority to levy property taxes. Depending on location, a single property may be subject to taxes from multiple districts.

These taxing authorities include:

  • Collier County government
  • The School Board of Collier County
  • Municipal governments (cities)
  • Independent special districts
  • Dependent special districts and Municipal Service Taxing Units (MSTUs)

Independent Special Districts

Independent special districts operate separately from county government and have their own elected or appointed governing boards. In Collier County, these include:

  • Three independent fire districts
    • Immokalee Fire Control District
    • North Collier Fire Control and Rescue District
    • Greater Naples Fire Rescue District
  • Collier Mosquito Control District
  • Soil and Water Conservation District
  • Community Development Districts (CDDs)
    • Approximately 19 CDDs, created to fund infrastructure and services for specific communities

Together, these account for approximately 24 independent special taxing districts within Collier County.

Other Taxing Authorities on Collier County Property Tax Bills

In addition to independent districts, property tax bills may include taxes from several other authorities, depending on location:

County and Dependent Districts

  • Collier County General Fund
  • Water Pollution Control
  • Conservation Collier
  • Municipal Service Taxing Units (MSTUs), which may fund:
    • Road maintenance
    • Drainage and stormwater
    • Street lighting
    • Beautification
  • County-dependent special units and bond districts

Municipal Governments (If Within City Limits)

  • City of Naples
  • City of Marco Island
  • City of Everglades City
  • Hideaway Beach District

Voter-Approved or Bond-Related Districts

  • Parks and recreation bonds
  • Beautification projects
  • Infrastructure or improvement bonds

Because not all properties fall within the same taxing boundaries, the number of taxing authorities affecting a property can range from fewer than 10 to more than 30, depending on location.

Who Approves the Budgets for These Taxing Authorities?

Each taxing authority approves its own budget in accordance with Florida’s Truth in Millage (TRIM) laws.

Budget Approval by Authority

Collier County Government

  • Budget prepared by county administration
  • Approved by the Collier County Board of County Commissioners

School Board of Collier County

  • Budget prepared by school district administration
  • Approved by the elected School Board
  • Subject to state compliance oversight (but not state approval)

Municipal Governments

  • Budgets prepared by city staff
  • Approved by city councils or commissions

Independent Special Districts

  • Budgets prepared by district management
  • Approved by the district’s governing board (elected or appointed)

Dependent Special Districts and MSTUs

  • Budgets prepared by county departments
  • Approved by the Board of County Commissioners

Role of the State of Florida

The State of Florida:

  • Does not approve local budgets
  • Enforces compliance through:
    • TRIM notice requirements
    • Public hearing mandates
    • Statutory limits on millage rates
    • Oversight by the Florida Department of Revenue

State intervention occurs only if a taxing authority violates state law.

Public Involvement and Transparency

Florida law requires transparency in the budgeting and taxation process, including:

  • Public hearings before millage rates are finalized
  • TRIM Notices mailed annually to property owners, which show:
    • Proposed millage rates
    • Proposed budgets
    • Comparison to prior-year taxes
    • Dates and locations of public hearings

These requirements allow property owners to understand who is taxing them, how much is being taxed, and why.

Public Hearings

How Property Taxes Are Calculated

Once all millage rates are established, property taxes are calculated as follows:

Taxable Value ÷ 1,000 × Total Millage Rate = Annual Property Tax

Example:

  • Taxable value: $400,000
  • Total millage rate: 14.0

400 × 14.0 = $5,600 per year

Why Millage Rates and Taxes Change

Property taxes may change due to:

  • Changes in government budgets
  • Growth or decline in the tax base
  • Voter-approved referendums
  • Economic conditions

Importantly, a lower millage rate does not always mean lower taxes. If property values increase significantly, tax bills can still rise even if millage rates remain flat or decrease.

The Bottom Line

  • Florida does not levy property taxes — local governments do
  • Each taxing authority approves its own budget under TRIM laws
  • Property taxes are based on taxable value, not market value
  • Your tax bill reflects the combined millage rates of all applicable taxing authorities

Understanding how millage rates and taxing districts work allows homeowners and buyers to better anticipate tax changes and make informed financial decisions.

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