Truth in Millage
In Florida, a municipality's annual budget is adopted through a multi-step process governed by state law, including the Truth in Millage (TRIM) Act. This process is designed to ensure transparency and public participation. The municipal fiscal year starts on October 1 of each year and ends on September 30 of the following year.
The TRIM Act is a key Florida law that informs taxpayers about how their property taxes (Ad Valorem Taxes) are determined. It requires all local taxing authorities, including the Town of Orchid, to follow specific procedures for setting their millage rates and budgets. In April/May of each year, the Town Council formally starts the process by determining the proposed millage rate. This is the first of three millage rates that the Town Council will adopt, with the tentative and final millage rates adopted in September at two separate public hearings. Each millage rate supersedes the last and it is only the final millage rate that is actually levied. Because it is difficult to raise a millage rate during the process, it is prudent for the Council to select a higher proposed millage rate than might be expected to be needed by the time the final millage rate is adopted.
A mill is a measure used to calculate property taxes. One mill is equal to $1 for every $1,000 of taxable property value.
In August, all property owners receive a TRIM notice in the regular mail from the Indian River County Property Appraiser, which is an official "Notice of Proposed Property Taxes". The notice, which is not a tax bill, is is a crucial part of the process as it provides a breakdown of the property's:
- Just Value (Market Value): The property appraiser's estimate of the property's fair market value.
- Assessed Value: The value used to calculate taxes, which may be lower than the just value due to limitations on assessment increases, such as the "Save Our Homes" cap for homesteaded properties.
- Taxable Value: The assessed value less any applicable exemptions, such as a homestead exemption.
- Proposed Taxes: An estimate of taxes for the upcoming fiscal year based on the proposed millage rates for each taxing authority, including the Town of Orchid.
If you disagree with the valuation of your property, file a petition with the Indian River County Value Adjustment Board. The deadline is usually in early September, so don't wait after you've received your TRIM notice. Do you know you can look up the valuation of any property in the County? Visit the Indian River County Property Appraiser's website to search by parcel ID, address, or name.
Double-check you're taking advantage of all the exemptions you're eligible for. Contact the Indian River County Property Appraiser about applying; there are two offices available for in-person or phone-based assistance, and a website with forms available to download.
- Vero Office: 1800 27th Street , Building B, Vero Beach, FL 32960, (772) 226-1469, 8 a.m. to 5 p.m.
- Sebastian Office: 1921 U.S. 1, Sebastian, FL 32958, (772) 226-1133, 8 a.m. to 5 p.m.
The TRIM notice also provides the dates and times for public hearings where you can voice your opinion on the millage rates and budgets before the rates are finalized. Check the calendar on this website for upcoming Town meetings. These meetings are held in September, in accordance with the TRIM Act. This is not great timing in Orchid, as the majority of our residents are out of state then. For that reason, you are encouraged to reach out to the members of the Town Council directly to ask questions and provide feedback.
When you get your property tax bill in November, note that you can get a discount for paying promptly. Get 4% off if you pay in November, 3% in December, 2% in January and 1% in February. No discounts are available in March. You can also opt to pay property taxes in installments.
Importantly by April 1, any unpaid property taxes become officially delinquent. At this time, a mandatory 3% penalty is added to the bill! In May, delinquent properties are advertised in a local newspaper and the cost of this advertisement is added to the tax bill. On June 1, the tax collector holds a tax certificate sale for properties with unpaid taxes and the winning bidder pays the overdue taxes and fees in exchange for a lien on the property. After two years of delinquency, the holder of the tax certificate can apply for a tax deed, which can lead to the property being sold at a public auction.
Statutory Steps for Budget Adoption
The municipal budget adoption process follows a series of statutory steps under Florida law to ensure public input and accountability. It is by law that the Town of Orchid holds its tentative and final budget hearings in September.
Proposed Millage Rate and Budget: The Town of Orchid's Council is responsible for setting the Town's proposed millage rate. This occurs at a public meeting held in April/May to accommodate the seasonal nature of the community and its Council. This is the first time that the Town Council formally grapples with the budget for the fiscal year that will start on October 1 - it happens at a time that there is much still unknown about the upcoming fiscal year and the Town Council tends to take a conservative approach in setting the millage rate, with the knowledge that increasing it later is very difficult, while decreasing it is easy.
Certification of Estimated Gross Taxable Property Values: By July 1, the Indian River County Property Appraiser certifies the tax roll, which includes the estimated assessed and taxable values of all real properties in the Town of Orchid. This information is a foundational component for the municipality's budget calculations. The Town is also provided with its "rolled back rate", which is the rate calculated to provide the same level of property taxes in the new fiscal year based on new taxable values as it did in the current fiscal year. Any millage rate over the rolled back rate is considered a tax increase.
TRIM Notice Mailing: The Indian River County Property Appraiser prepares and mails the aforementioned TRIM notices to all property owners by late August.
State Revenue Estimates: In July/August, the Town receives official estimates from the Florida Department of Revenue regarding a variety of state revenues. These estimates are very helpful in preparing the budget.
Tentative Budget Hearing: The Town of Orchid must hold a public hearing on the tentative millage rate and tentative budget in September, the date, time, and location of which are published on the TRIM notice. Residents are encouraged to attend and provide feedback. However, since this is a time of year when many residents are out of state, comments and questions may also be shared with the Town Council and its staff via other means, such as phone and email, in advance of the meeting. The Town Council can adopt a millage rate lower than its proposed rate, but cannot increase it without re-advertising and holding another hearing.
Final Budget Hearing: After the tentative budget hearing, the Town Council must hold a final public hearing to adopt the final millage rate and budget. This hearing is advertised in the TC Palm Newspaper's regular pages (not the classifieds) two to five days before the hearing. It is generally held about a week after the tentative budget hearing.
Adoption and Submission: The Town Council officially adopts the millage rate by resolution, which must be submitted to the Indian River County Property Appraiser and Tax Collector, as well as to the Florida Department of Revenue within three days of adoption. The Florida Department of Revenue is charged with assessing the Town's compliance with the proper procedures according to the TRIM Act.
Budget Amendment: Amendment of the budget by the Town Council is possible throughout the fiscal year to which the budget pertains, but in Orchid this is usually only attended to once after the close of the fiscal year. This occurs at a public meeting by adoption of a resolution within 60 days of year end - usually in November.