Mr. Feichthaler:

Happy New Year! I was wondering how the tax bill works with regard to the new year. I paid the property tax bill on my house in November, to take advantage of the 4% discount. So, am I paid through 2020? I would think that, if I sold my house this March, I would get some of that money back?

– Alex B.

Dear Alex:

It is highly advisable to pay the taxes in November if possible, as the 4% discount can be significant. Your tax bill has several components, that are generally split into two types: ad valorem taxes and assessments. The term ad valorem means that the taxes are based upon the value of your home, with reductions for certain exemptions like homestead. These taxes are paid in arrears, meaning that, when you paid your taxes in November, you were paying the calendar year 2019 ad valorem taxes. If you sold in March, you would provide the buyer a credit, based on an estimate of what 2020 taxes will be from Jan. 1 through the closing date.

The other main charges, which I am generally calling assessments, are not charged based on value of the property. Rather, it is based on the value being provided to the property by the city or county. The main assessments in Cape Coral are for garbage collection, stormwater and lot mowing (for vacant land). These amounts are paid in advance, for the same time period as the city’s fiscal year – Oct. 1 through Sept. 30. So, if you sold in March, the buyer would owe you for the amounts you paid on their behalf, which would be valued from the sale date in March through Sept. 30, 2020.

Although this may seem confusing, the law firm or title company that handles your title work and transaction will show all these calculations on the final settlement statement. Depending on the value of your home and the assessment amounts, you may receive a credit, or the buyer may receive a credit from you.

Happy New Year to you and everyone reading this column. I hope your 2020 is very happy and healthy.

Eric P. Feichthaler has lived in Cape Coral for over 30 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Historical Museum, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 18 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator.

Mr. Feichthaler can be reached at eric@capecoralattorney.com, or (239) 542-4733.

This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.