Tax Information


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I. Real Estate Taxes


Ad Valorem Real Estate Taxes are based on the value of real property, and are paid in arrears. The tax year runs from January 1st to December 31st. The office of the Property Appraiser establishes the value of the property and the Board of County Commissioners, School Board, City Commissioners and other levying bodies set the millage rates. One mill equals $1.00 per $1,000.00 of property value.

Using these values and allowing for exemptions, the tax roll is completed by the Property Appraiser and approved by the Department of Revenue. The tax roll is then certified by the Property Appraiser to the Tax Collector who mails the tax notice/receipt to the owner's last address of record as it appears on the tax roll. (Note: The owner of record is the owner as of January 1st of the tax year.) It is the responsibility of each taxpayer to see that the taxes are paid and that a tax bill is received. F. S. 197.122 (1995) In cases where the property owner pays their Real Estate Taxes through an escrow account, the mortgage company should request and be sent the tax bill, and the owner will receive an Informational Notice.



II. Discount Periods


Tax statements are mailed on or about November 1st of each year, with the following discounts in effect for early payment: A 4% discount is allowed for the first 30 days after the original mailing date. Thereafter, a 3% discount is allowed in December, a 2% discount in January, a 1% discount in February, and there is no discount allowed in March. Taxes become delinquent April 1st, at which time 3% interest plus advertising costs are added to the gross amount of the tax. (See section on Delinquent Property Taxes).


III. Changes of Ownership, Corrections, Address Changes on Tax Bills


Questions regarding exemptions, changes in ownership or address, or property assessments are not legally handled by the Tax Collector's Office and should be directed to the Property Appraiser's Office at (941)743-1498.


Alternative (Installment) Payment Plan for Real Estate Taxes


Taxpayers may choose to pay their real estate taxes quarterly by participating in an installment payment plan. To be eligible for the program, the taxpayer's estimated taxes must be in excess of $100.00. Those who qualify must fill out and return an Installment Plan application form to the Tax Collector's Office prior to May 1st (application forms are available at all county tax offices).

The plan requires that the first installment must be made no later than June 30th. Failure to make this first payment will automatically cancel the participant from the plan and the taxpayer will be required to pay the taxes due in full by March 31st.

Upon meeting the first installment deadline, the taxpayer is then obligated to participate in the program for the entire year. Discounts do not apply to delinquent payments. Any amount remaining unpaid on April 1st is treated as a delinquent tax bill.

The following payment schedule applies to the installment plan:

  • 1st installment: 1/4 the total of estimate taxes discounted 6%.
  • Payment due by June 30th.
  • 2nd installment: 1/4 the total estimated taxes discounted 4.5%
  • Payment due by September 30th.
  • 3rd installment: 1/4 the total estimated taxes plus 1/2 of any adjustment made for actual tax liability, discounted 3%.
  • Payment due by December 31st.
  • 4th installment: 1/4 of the total estimated taxes plus the remaining 1/2 of any adjustment for actual tax liability. No discount applies.
  • Payment due by March 31st.
  • Taxpayers participating in the Installment Payment plan are automatically re-enrolled each year and do not have to fill out a new application.

Delinquent Real Estate Taxes


Real estate taxes become delinquent on April 1st each year. Florida Statutes require the Tax Collector to advertise the delinquent parcels in a local newspaper once a week for three consecutive weeks following the payment deadline. Advertising and collection fees are added to the delinquent taxpayer's bill.

Beginning on or before June 1st, the Tax Collector is required by law to hold a Tax Certificate Sale. The certificates represent liens on all unpaid real estate properties. The sale allows citizens to buy certificates by paying off the owed tax debt. The sale is conducted in reverse auction style with participants bidding downward on interest rates starting at 18%. The certificate is awarded to the lowest bidder.

A tax certificate, when purchased, becomes an enforceable first lien against the real estate. The certificate holder is actually paying the taxes for a property owner in exchange for a competitive bid rate of return on his investment. In order to remove the lien, the property owner must pay the Tax Collector all delinquent taxes plus accrued interest, penalties and advertising fees. The Tax Collector then notifies the certificate holder of any certificates redeemed and a redemption check is then issued to the certificate holder. All delinquent taxes must be paid in certified funds. Only cashiers checks, money orders, or cash will be accepted as payment for delinquent taxes.

A tax certificate is valid for seven years from the date of issuance. The holder may apply for a tax deed when two or more years have elapsed since the date of delinquency. If the property owner fails to pay the tax debt, the property tax deed is sold at public auction.



Tangible Personal Property Tax


Tangible Personal Property Tax is an ad valorem tax assessed against the furniture, fixtures and equipment located in businesses and rental property. It also applies to structural additions to mobile homes.

The Property Appraiser's Office assesses the value of tangible personal property and presents a certified tax roll to the Tax Collector. It is the job of the Tax Collector to mail the tax notices and collect the monies due.

Tax bills for Tangible Personal Property are mailed at the same time as the Real Estate Tax Bills, and the same discounts apply. Taxes become delinquent April 1st, at which time 1.5% interest, plus a $2.00 late fee and advertising costs are added to the gross amount of tax. (See section on Delinquent Property Taxes).

Pursuant to Florida Statutes, Tax Warrants are issued prior to April 30th of the next year on all unpaid tangible personal property taxes. Within 30 days after the warrants are prepared, the Tax Collector applies to the Circuit Court for an order directing levy and seizure of the property for the amount of unpaid taxes and costs.

Any changes to the tax roll (name, address, location, assessed value) must be processed through the Property Appraiser's Office.


Central Assessed Taxes


Taxes assessed to railroads utilizing portions of land in Charlotte County are billed in the same manner as Personal Property Taxes, and subject to the same delinquent collection methods.


Non-Ad Valorem Assessments


A Non-Ad Valorem Assessment is "a legal financing mechanism or method wherein the County establishes a special district to allow a group of citizens to fund a desired improvement, such as utilities or roads." The assessment boundary is determined by those properties that will derive a benefit from the improvements. This boundary by definition is called the "benefit unit."

This process allows the property owner to finance the amount of the assessment over a period of time, depending on the project cost and type of improvements. The assessment will appear annually on the property tax bill as a non-ad valorem assessment.


Tourist Tax


Tourist development tax is charged on revenue received from rentals of six months or less. The explanation of this can be found in the Florida Administrative Code. It states that, unless otherwise exempt, “every person is exercising a taxable privilege when engaging in the business of renting, leasing, letting, or granting licenses to others to use transient accommodations, unless the rental charges or room rates are specifically exempt.” The actual rate differs between counties in Florida. In Charlotte County, there is a 5% rate, which is in addition to the 7% sales tax that is charged by the state. The 5% tourist development tax is sent to the Charlotte County Tax Collector and the 7% state sales tax is sent to the Florida Department of Revenue.


Collecting the tax from tenants


In order to collect tourist tax, a registration form must be completed and returned to the tax collectors office. This form can be found on our forms page. An application must also be completed for the Florida Department of Revenue. The Department of Revenue can be contacted at 1-800-FLA-DOR1 or at http://dor.myflorida.com/dor/.


Who has to pay?


Any individual who leases or rents any accommodation for six months or less must pay the 12% on the rent payment. Remember that the 12% includes the state sales tax and also the tourist development tax. This tax applies to single or multi-family dwellings, mobile home parks, condominiums, vessels, apartment buildings, hotels, and motels.


Payment Schedule


Tourist development tax is due to the Tax Collectors office by the 20th day of the month following the collection. Penalties and delinquent interest must be added if the postmark is the 21st day of the month of after. The reporting month is classified as the month in which the rent is collected.


Exemptions


Florida Law allows any person who enters into a bona fide written lease, for continuous residence of a transient accommodation for longer than six months, to be exempt from Florida sales tax and local tourist development tax. What is a bona fide written lease? A ‘bona fide written lease’ is a written document that clearly demonstrates it is intended for the renter to have exclusive use of the rental property. In order to validate the lease document, several elements listed below will need to be considered by the Tax Collector and the Department of Revenue.

  • Length of lease, including beginning and ending date
  • A statement giving the lessor the complete and exclusive use of the property for the entire duration of the lease
  • Good faith executed, without fraud or deceit
  • A sufficient description of the leased property
  • A statement that the lease contains the complete and sole agreement
  • A provision that the lessee will pay an agreed amount of rent
  • A statement containing the due date, frequency and address for the payment of the rent
  • A statement specifying what conditions will result in early termination of the lease, the rights and obligations of the parties at termination and any penalties that will result from early termination
  • Signatures of the named parties, lessee, and lessor.

Owner Compensation


Owners are entitled to keep 2.5% of the tourist tax collected, maximum of $30, as compensation for this service. This allowance is subtracted from the tax on the return form.


Delinquent Tourist Tax


The return and payment must be postmarked by the 20th of the month following the reporting period, otherwise the collection allowance is forfeited and a penalty and interest are assessed. The penalty is 10% of the tax due for each delinquent month or fraction of a month. The maximum penalty is $50. The interest rate is variable. For further instructions you will need to contact our office at (941) 743-1911.


Record Keeping


Any business dealing in guest/tenant/transient accommodations is responsible for collecting and remitting this tax and for maintaining records such as guest checks, general ledgers, tax payments, and federal income tax returns. All records involving tourist development tax must be kept for five years and made available to audit at the place of business. All records must be present at the audit site prior to an audit.


Business Tax


Business tax renewals are now available online. Renewals can also be processed in any of our office locations. New applications must have a completed Certificate of Use form and Business Tax Application and can then be processed at the Murdock branch of the Tax Collector's office in room 241.