Property-tax and escrow terms in plain language

Ad valorem tax

A tax based on value. In Florida property tax, it is taxable value multiplied by a millage rate.

Assessed value

The value after any legal limit on yearly increases is applied. It can be lower than just value. See values explained.

Community development district (CDD)

A special-purpose local government created under Chapter 190, Florida Statutes. CDDs can collect authorized taxes or assessments to pay for public facilities and services. They follow their own rules. See CDD costs explained.

Dependent special district

A special district that a single county or city controls. Florida law lists the tests, such as the same governing body, appointment of all members by that government, removal at will, or budget approval or veto by that government.

Escrow account

Money your mortgage servicer holds to pay certain bills, usually property taxes and homeowners insurance. You fund it through your monthly payment. See escrow.

Exemption

An amount subtracted from assessed value for eligible owners, such as the homestead exemption. It reduces taxable value. It is not a cash payment.

Homestead

Property that is an owner's permanent residence and qualifies for the homestead exemption and the Save Our Homes assessment limit. Eligibility is determined by the county Property Appraiser. A purchase alone does not create it.

Independent special district

A special district that is not dependent. "Independent" describes who controls the district, not whether it can tax. Its charter and governing law decide that. Fire district boards are typically elected, with statutory exceptions.

Just value

The Property Appraiser's market-value assessment as of January 1. It may differ from your purchase price.

Mill / millage rate

One mill is $1 of tax for each $1,000 of taxable value. A rate of 15 mills on $300,000 of taxable value is $4,500.

MSBU (municipal service benefit unit)

An area a county creates to provide a service to that area, such as streets or drainage, with costs usually recovered through assessments or charges on the properties it serves. It is a county tool, not an independent special district.

MSTU (municipal service taxing unit)

An area a county creates to fund a service, such as fire protection or law enforcement, that can be paid for with property tax levied inside that area. The county commission governs it. Parcels inside the area may pay a rate that parcels outside it do not.

Non-ad valorem assessment

A charge that is not based on millage. Examples can include some fire-district, stormwater or CDD charges. Homestead exemptions and assessment limits do not reduce it the way they affect value-based taxes. Parcelume's estimate does not include these charges. When a local government uses the uniform collection method, the charge appears on the combined tax notice.

Portability

An option that lets an eligible owner transfer part of a prior Florida homestead's assessment limit benefit to a new Florida homestead. Parcelume's estimator does not include it.

Property Appraiser

The elected county official who values property and applies exemptions. Does not set tax rates or send the bill.

Save Our Homes

A limit on how much a homestead's assessed value can rise each year: the lower of 3% or the change in the Consumer Price Index. It limits assessed value, not your tax bill.

Special district

A local government created for a particular purpose within a limited area, such as fire protection. Some special districts can levy property taxes, some charge assessments, and some do both.

Tax Collector

The elected county official who sends tax bills and collects payments. Does not set values or rates.

Taxable value

Assessed value minus the exemptions that apply to a given tax. School and non-school taxes can have different taxable values.

TRIM notice

The Notice of Proposed Property Taxes mailed in August. It shows each authority's proposed rate and hearing date. It is not a bill.

Reflects Florida law as of October 11, 2026. General educational information only; not individualized tax, legal or financial advice. Definitions are simplified; the sources named on each topic page control.