Title: Property Tax Discounts for Early Payment

Summary: Increases the discount rates for early payment of property taxes. Lowers the percentage of certified taxable value to be used by taxing authorities in preparing tentative budgets. Increases the discount rates for prepayment of property tax by the installment method.

Full Text:
An act relating to property tax discounts for early payment; amending s. 197.162, F.S.; increasing the discount rates for early payment of property taxes; amending s. 200.065, F.S.; lowering the percentage of certified taxable value to be used by taxing authorities in preparing tentative budgets; amending s. 197.222, F.S.; increasing the discount rates for prepayment of property tax by the installment method; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Section 197.162, Florida Statutes, is amended to read: 197.162 Discounts; amount and time. On all taxes assessed on the county tax rolls and collected by the county tax collector, discounts for early payment thereof shall be at the rate of percent in the month of November or at any time within days after the mailing of the original tax notice; percent in the month of December; percent in the following month of January; percent in the following month of February; and zero percent in the following month of March or within days prior to the date of delinquency if the date of delinquency is after April 1. When a taxpayer makes a request to have the original tax notice corrected, the discount rate for early payment applicable at the time the request for correction is made shall apply for days after the mailing of the corrected tax notice. A discount shall apply at the rate of percent for days after the mailing of a tax notice resulting from the action of a value adjustment board. Thereafter, the regular discount periods shall apply. For the purposes of this section, when a discount period ends on a Saturday, Sunday, or legal holiday, the discount period shall be extended to the next working day, if payment is delivered to a designated collection office of the tax collector. Section 2. Paragraph (a) of subsection (2) of section 200.065, Florida Statutes, is amended to read: 200.065 Method of fixing millage.  (2) No millage shall be levied until a resolution or ordinance has been approved by the governing board of the taxing authority which resolution or ordinance must be approved by the taxing authority according to the following procedure: (a)1. Upon preparation of a tentative budget, but prior to adoption thereof, each taxing authority shall compute a proposed millage rate necessary to fund the tentative budget other than the portion of the budget to be funded from sources other than ad valorem taxes. In computing proposed or final millage rates, each taxing authority shall use utilize not less than percent of the taxable value certified pursuant to subsection (1). 2. The tentative budget of the county commission shall be prepared and submitted in accordance with s. 129.03. 3. The tentative budget of the school district shall be prepared and submitted in accordance with chapter 1011, provided that the date of submission shall not be later than days after certification of value pursuant to subsection (1). 4. Taxing authorities other than the county and school district shall prepare and consider tentative and final budgets in accordance with this section and applicable provisions of law, including budget procedures applicable to the taxing authority, provided such procedures do not conflict with general law. Section 3. Subsection (1) of section 197.222, Florida Statutes, is amended to read: 197.222 Prepayment of estimated tax by installment method.  (1) Taxes collected pursuant to this chapter may be prepaid in installments as provided in this section. A taxpayer may elect to prepay by installments for each tax notice with taxes estimated to be more than $100. A taxpayer who elects to prepay taxes shall make payments based upon an estimated tax equal to the actual taxes levied upon the subject property in the prior year. Such taxpayer shall complete and file an application for each tax notice to prepay such taxes by installment with the tax collector prior to May of the year in which the taxpayer elects to prepay taxes in installments pursuant to this section. The application shall be made on forms supplied by the department and provided to the taxpayer by the tax collector. After submission of an initial application, a taxpayer shall not be required to submit additional annual applications as long as he or she continues to elect to prepay taxes in installments pursuant to this section. However, if in any year the taxpayer does not so elect, reapplication shall be required for a subsequent election to do so. Installment payments shall be made according to the following schedule: (a) The first payment of one-quarter of the total amount of estimated taxes due shall be made not later than June of the year in which the taxes are assessed. A percent-percent discount applied against the amount of the installment shall be granted for such payment. The tax collector may accept a late payment of the first installment under this paragraph within days after June 30; such late payment must be accompanied by a penalty of percent of the amount of the installment due. (b) The second payment of one-quarter of the total amount of estimated taxes due shall be made not later than September of the year in which the taxes are assessed. A percent 4.5 percent discount applied against the amount of the installment shall be granted for such payment. (c) The third payment of one-quarter of the total amount of estimated taxes due, plus one-half of any adjustment made pursuant to a determination of actual tax liability, shall be made not later than December of the year in which taxes are assessed. A percent-percent discount applied against the amount of the installment shall be granted for such payment. (d) The fourth payment of one-quarter of the total amount of estimated taxes due, plus one-half of any adjustment made pursuant to a determination of actual tax liability, shall be made not later than March following the year in which taxes are assessed. No discount shall be granted for such payment. (e) For purposes of this section, when an installment due date falls on a Saturday, Sunday, or legal holiday, the due date for the installment shall be the next working day, if the installment payment is delivered to a designated collection office of the tax collector. Taxpayers making such payment shall be entitled to the applicable discount rate authorized in this section. Section 4. This act shall take effect July 1, 2011.