Budget Frequently Asked Questions

All taxes are computed on the taxable value. To obtain the taxable value, use the following formula.

Taxable Value Formula

Assessed Value: $80,000
less: Homestead Exemption: - 25,000
Taxable Value: $55,000

Property Tax Formula

(Taxable Value/1000) x millage rate = property tax

Example: $55,000/1000 = $55 x 5.2889 = $290.89

Just as you may borrow money to buy a home, the County borrows money to pay for the construction of major facilities or for the purchase of equipment. A majority of the County’s debt is in the form of bonds, which allows the County to spread repayment over a long period of time. In this case, the cost is shared not only by the taxpayers who are present at the time of construction or acquisition but also by those who will benefit from its existence in future years.

If you have a homestead exemption, the assessed value of your home may increase even if the market value fell from the previous year. If your home’s assessed value is less than the home’s market value, Florida law requires that the assessed value be increased each year by 3 percent or the Consumer Price Index, whichever is less, until the assessed value is the same amount as the market value. The good news is that the assessed value can never exceed market value.

Look closely at your tax bill and you will see that your property is taxed by a number of entities. In addition to Osceola County, your property is taxed by municipalities, the School Board, neighborhood serving entities, water districts, etc. In fact, more than 40 taxing authorities exist in the County with the authority to impose a tax on your property. Because tax bills are sent out and collected by the County's Tax Collector, many residents assume all of their taxes go to the County.

First, more than half of the County’s reserves are already designated for a specific purpose such as capital projects or debt; it isn’t just extra money. Second, it would be unwise for the County to use up its contingency (undesignated and available for unexpected expenses or emergencies) reserves because it’s a key consideration when rating agencies evaluate the County’s economic strength and credit rating.