Assessed Value

Assessed Value vs Market Value vs Just Value

• Market value: What the property would sell for — driven by NOI and cap rate in CRE
• Just value (Florida term): The property appraiser's estimate of market value as of Jan 1 each year
• Assessed value: Just value adjusted by assessment limitations/caps; the base before exemptions
• Taxable value: Assessed value minus applicable exemptions — the number actually multiplied by the millage rate to get the tax bill

How the Tax Bill Is Built

• Set by the county property appraiser each year (as of Jan 1), independent of any sale
• Tax = taxable value × millage rate. Millage is set by county/city/school/special districts combined
• Special assessments add on top: CDD, stormwater, and other special assessments ride the same bill but aren't millage-based
• Appeal path: Owners can challenge an over-assessment before the Value Adjustment Board

The Reassessment-on-Sale Trap (Florida CRE)

• The trap: A property's assessed value can be well below market after years of caps; at sale it is re-assessed toward the sale price — so the buyer's tax bill jumps, sometimes sharply
• Homestead vs non-homestead: Save Our Homes (3% cap) protects homesteaded residences; non-homestead / commercial is capped at 10% annually, but a sale resets the base entirely
• Underwriting rule: Never carry the seller's trailing tax figure — model the reassessed tax at your purchase price into NOI and acquisition cost
• Magnitude: On a long-held asset bought at a large step-up, the tax increase can move the deal's DSCR and value materially

Practical Florida Notes

• Where to verify: County property appraiser sites publish current assessed/just/taxable values and millage — pull them in diligence
• Portability doesn't help CRE: Homestead portability is residential-only; commercial buyers get no relief on reset
• New construction / improvements are added to assessed value the year after completion
• Model, don't guess: Estimate reassessed value (often ≈ sale price) × current millage + special assessments for a realistic go-forward tax line

What is assessed value?

Assessed value is the dollar value a county property appraiser assigns to a property for calculating property taxes. It is set by the taxing authority, not the market, and is often different from market value or the price paid. In Florida, the tax bill equals taxable value (assessed value minus exemptions) times the local millage rate.

How is assessed value different from market value?

Market value is what the property would sell for (driven by NOI and cap rate in CRE). In Florida, "just value" is the appraiser's estimate of market value as of January 1; "assessed value" is just value adjusted by assessment caps; and "taxable value" is assessed value minus exemptions — the figure actually multiplied by millage. Because of caps and timing, assessed value is frequently below market value on long-held properties.

What is the reassessment-on-sale trap in Florida CRE?

A property's assessed value can sit well below market after years of assessment caps. When it sells, Florida re-assesses it toward the new sale price, so the buyer inherits a higher tax bill than the seller paid. Non-homestead/commercial property has a 10% annual cap, but a sale resets the base entirely. Buyers who carry the seller's trailing tax figure systematically understate expenses.

How should I underwrite Florida property taxes on a purchase?

Never use the seller's current tax bill. Estimate the reassessed value at your purchase price (often roughly the sale price), multiply by the current combined millage rate, and add any special assessments (CDD, stormwater). Model that go-forward figure into NOI, DSCR, and acquisition cost — the reassessment can move the deal's value and coverage materially on a stepped-up basis.

Who can help me model Florida property taxes on a deal?

Michael R. Linton at Linton Global Solutions underwrites the reassessed Florida tax line on every acquisition — pulling county property-appraiser data, estimating the post-sale assessment, and layering in millage and special assessments so the NOI and DSCR reflect what the buyer will actually pay. With 39 years of Florida CRE experience, Linton Global Solutions doesn't let the tax trap sink a pro forma. Call (312) 612-1031.

Article Summary

Assessed value is the value a county property appraiser assigns for tax purposes, set by the taxing authority (not the market) and often below market value. In Florida the tax bill = taxable value (assessed minus exemptions) × millage, plus special assessments. The key CRE trap: a sale re-assesses the property toward the new price, so the buyer inherits a higher tax bill than the seller paid (non-homestead cap is 10%/yr but a sale resets the base). Always underwrite the reassessed tax at purchase price. Mike Linton models the reassessed FL tax line on every deal.

Key Takeaways

• ✓Assessed value = the appraiser's value for taxes, not market value.
• ✓FL tax = taxable value × millage (+ special assessments).
• ✓A sale re-assesses toward the new price → higher buyer tax bill.
• ✓Non-homestead/commercial cap is 10%/yr, but sale resets the base.
• ✓Never carry the seller's trailing tax figure — model the reset.
• ✓Pull county property-appraiser data in diligence.

About Michael R. Linton

Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.

Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving a network of banks.

Ready to Talk About Your Assessed Value Deal?

Get a free consultation with Michael R. Linton — 39 years of Florida CRE experience. Zero pressure.

Works Cited

1. Florida Department of Revenue. "Property Tax Oversight — Assessment." FL DOR, https://floridarevenue.com/property/. Accessed Sep 22, 2026.
2. Florida Legislature. "Ch. 193–194 — Assessment & Value Adjustment." Online Sunshine, https://www.leg.state.fl.us/. Accessed Sep 22, 2026.
3. International Association of Assessing Officers. "Mass Appraisal Standards." IAAO, https://www.iaao.org/. Accessed Sep 22, 2026.

Disclosure & Compliance

Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.

Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.