What is a “split roll” property tax system?

A split roll property tax system is one in which different types of properties are taxed differently. In Florida, a split roll system means that the state assesses residential and commercial properties separately. Residential property tax rates are usually lower than commercial property tax rates because commercial properties tend to generate more revenue. Under a split roll system, residential property owners are typically taxed at a flat rate. Commercial properties, on the other hand, can be classified and taxed based on the type of business being conducted on the property. For example, a shopping center that generates more revenue would be taxed at a higher rate than a smaller business with fewer customers. Split roll systems are important for capturing the full value of commercial properties. A single rate system can lead to under taxation of commercial properties, as the tax rate is based on residential values. Split roll systems are also beneficial for residential property owners, as they can insure that the tax burden is distributed fairly among all types of property owners. Split roll systems can be complex and may require special tax assessments for commercial properties. It is important that businesses and property owners work with experienced property tax assessors to ensure that the correct tax rate is applied to their property.

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What is a “split roll” property tax system?

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