MILTON — With the adoption of the Fiscal Year (FY) 2022 budget at a special meeting of the Milton City Council on Sept. 28, the council approved a reduction in the millage rate for all city property owners.
As a result, Milton residents may benefit from a tax decrease this coming year on the city portion of their ad valorem tax bill. The new millage rate for property in the city is 2.99, down from 3.0841, a 3.05 percent decrease.
The ad valorem taxes are calculated by multiplying the millage rate by every thousand dollars of taxable value, as determined by the Santa Rosa County Property Appraiser.
This marks the second consecutive year that the council has lowered the millage rate. For more information, please contact the city's Budget Office at 850-983-5400. Information on the city’s budget is at www.miltonfl.org.
There are two variables that make up the ad valorem taxes for a property. The first is the assessed value of the property. The assessed value is determined by the county Property Appraiser annually.
As property appreciates or depreciates in value over time, the assessed value changes. Exemptions, such the Homestead Exemption, may lower the taxable value of property. The city has no control over the assessed value determination.
The second variable is the millage rate, or the amount of tax applied to the assessed value. A mill is 1/1000 of a dollar, or $1 of tax for every $1,000 of taxable value. The millage can also be adjusted up or down annually by the various local government entities up to the maximum millage allowed by law.
To determine the amount of ad valorem tax, take your taxable value and multiply it by the millage rate. The result of that equation will be how much you are charged in ad valorem taxes.
Both variables may change, up or down, annually, resulting in different taxes being levied.
This article originally appeared on Santa Rosas Press Gazette: City council approves tax cut for 2022