Property Taxes After a Commercial Sale in Florida

Just value, assessed value, and taxable value

Three numbers on a property record get used as if they were the same. They are not.

Just value is the property appraiser's just valuation as of January 1, using the factors in s. 193.011, Florida Statutes. Those factors include the present cash value in an arm's-length sale, highest and best use and present use, location, size, cost and replacement value of improvements, condition, income, and the net proceeds of a sale after usual costs. Just value is an appraisal judgment as of that January 1. It is not automatically equal to last week's contract price.

Assessed value can be lower than just value because of an assessment limitation. For most non-residential property, and for residential property that is not under the homestead or other specified caps, that limitation is s. 193.1555.

Taxable value is assessed value minus any exemptions that apply. Commercial property often has few or no exemptions, so taxable value may be close to assessed value. That is why a cap that the last owner enjoyed can be a poor guide to the buyer's bill.

The Florida Department of Revenue is the state agency that oversees the property tax system. The county property appraiser assesses the property. The tax collector collects the tax. In this market, that is the Pasco County Property Appraiser and the Pasco Tax Collector, or the Hernando County Property Appraiser.

What resets at a commercial sale

Section 193.1555 is the statute that matters on a typical commercial sale.

The property is first assessed at just value as of January 1 of the year it becomes eligible for this assessment. Beginning the following year, it is reassessed annually on January 1, and any change from that reassessment may not exceed 10 percent of the prior year's assessed value, except that assessed value cannot exceed just value. School-district levies are carved out of this section. The 10 percent limitation is "for all levies other than school district levies."

A change of ownership or control breaks that limitation. The statute says property assessed under this section "shall be assessed at just value as of January 1 of the year following a qualifying improvement or change of ownership or control." After that reset, the annual 10 percent limitation starts again in later years, still except for school levies. A change of ownership or control includes a sale, a foreclosure, a transfer of legal title or beneficial title, or the cumulative transfer of control or of more than 50 percent of the ownership of the legal entity that owned the property when it was most recently assessed at just value, with listed exceptions. A qualifying improvement, meaning a substantially completed improvement that increases just value by at least 25 percent, also triggers a just-value assessment the following January 1. Changes, additions, or improvements to non-residential property are generally assessed at just value as of the first January 1 after they are substantially completed.

In practice, if you close in calendar year 2026, the January 1, 2027 assessment is the first one at just value after the sale, unless an exception in the statute applies. The 10 percent limitation, for non-school levies, can begin with later years. The seller's TRIM notice and the seller's current tax bill still reflect the seller's assessed value and any cap that had built up. Do not budget the buyer's holding cost from that bill alone.

This is not the homestead Save Our Homes cap in s. 193.155. The Pasco Property Appraiser's FAQ discusses Save Our Homes in the homestead context, including that you have to reapply for homestead after a sale. On commercial property, stay in s. 193.1555. If a parcel has a house on it that someone has homesteaded, treat that as a separate exemption question with the property appraiser. It is not the typical commercial case.

The commercial due diligence checklist already says to estimate the post-sale assessment early, because Florida's non-homestead assessment cap resets at sale. The closing-costs guide covers how the current-year tax is prorated at closing. Those are two different numbers: the proration of this year's bill, and the buyer's bill in later years after the reset.

Agricultural classification

A lot of vacant commercial land in East Pasco and Hernando still carries an agricultural classification, sometimes called greenbelt. That classification is a use-based assessment under s. 193.461, not a sale-price cap.

Lands may not be classified as agricultural unless a return is filed on or before March 1 of each year, with a limited late-file path after the TRIM notice is mailed. Failure to file on time is a one-year waiver of the privilege. The property appraiser may require information reasonably needed to show a bona fide agricultural purpose. The appraiser must reclassify land that is diverted from an agricultural to a nonagricultural use, or that is no longer being utilized for agricultural purposes.

The Hernando County Property Appraiser's FAQ tells owners to make sure the classification is theirs and not that of the prior owners, and says you are no longer eligible if the land is not being used primarily for a bona fide agricultural purpose on January 1 of the tax year. Only the parts used in the commercial agricultural endeavor are included. A home and its surrounding land are not.

If you buy classified land and put it to a commercial use, budget for the loss of that classification and for an assessment under the usual just-value rules. If you intend to keep a bona fide agricultural use, file on time and confirm with the appraiser that the classification will not stay in the prior owner's name by mistake. The Pasco land due diligence checklist flags this as a carrying-cost issue after closing.

The TRIM notice

TRIM stands for Truth in Millage. Section 200.069, Florida Statutes, prescribes the form of the notice of proposed property taxes. The statute requires the notice to be titled "NOTICE OF PROPOSED PROPERTY TAXES" and "DO NOT PAY - THIS IS NOT A BILL."

The property appraiser prepares that notice using the proposed millage rates from each taxing authority. Under s. 200.065, the deadline for mailing the notice is the later of 55 days after certification of value, or 10 days after the tax roll is approved or interim roll procedures are instituted. In a typical year, owners see the notice in August. It shows proposed taxes, the prior year's taxes, market (just) value, assessed value, exemptions, and taxable value, and it tells you how to contact the property appraiser and how to petition the value adjustment board.

If you disagree with the just value, a classification, or an exemption, start with the property appraiser. Section 194.011 provides for a petition to the value adjustment board, filed with the clerk of the board on or before the 25th day following the mailing of that notice. Do not wait for the tax bill if you intend to challenge the value.

Hernando's property appraiser has a TRIM online tool at the office's published address. The page returned an error when I retrieved it on November 12, 2026, so use the main Hernando Property Appraiser site and confirm the current TRIM lookup with that office. Pasco parcel records and assessment data are on pascopa.com.

The tax bill, discounts, and delinquency

The TRIM notice is the proposal. The bill is issued later by the tax collector.

Under s. 197.333, all taxes are due and payable on November 1 of each year, or as soon thereafter as the certified tax roll is received by the tax collector. Taxes become delinquent on April 1 following the year in which they are assessed, or immediately after 60 days have expired from the mailing of the original tax notice, whichever is later.

Section 197.162 sets the early-payment discounts: 4 percent in November, or at any time within 30 days after the original tax notice is sent; 3 percent in December; 2 percent in January; 1 percent in February; and zero percent in March, or within 30 days before delinquency if delinquency falls after April 1. Commercial contracts often say whether the proration at closing assumes the maximum discount. That is a contract term, covered in the Florida commercial closing costs guide.

Pay Pasco bills through the Pasco Tax Collector. Pay Hernando bills through the Hernando County Tax Collector. I did not get a clean load of a Hernando Tax Collector home page on November 12, 2026, so confirm the current payment site with the collector's office rather than relying on a third-party link.

How to estimate the buyer's bill

Use this method, then ask the property appraiser to review it.

1. Start with a just-value estimate as of the next January 1 after the change of ownership. The contract price is one data point under s. 193.011. It is not a substitute for the appraiser's valuation, especially if the price includes personal property, or if the market moves between closing and January 1.
2. Subtract only the exemptions that will actually apply to the buyer. Do not keep the prior owner's homestead or other personal exemptions.
3. If the land will lose an agricultural classification, do not use the classified assessed value in the estimate.
4. Multiply taxable value by each taxing authority's millage, divide by 1,000, and add the results. A mill is one dollar per $1,000 of taxable value, as the Pasco Property Appraiser's FAQ states. The total rate is the combined millage of the county, the school district, any city, and any special districts that levy on that parcel. Pasco notes that millage is set by the jurisdiction, which is listed in the parcel's legal description.
5. Remember that school-district millage is not limited by the 10 percent assessed-value cap in s. 193.1555. Even in later years, when the non-school assessed value may be capped, school taxes still use a taxable-value base that is not limited by that cap. Confirm how the school taxable value is shown on the TRIM notice with the property appraiser.
6. Treat current millage as a starting point. Taxing authorities set rates each year through the TRIM process. Last year's bill is not next year's rate.

I am not publishing a sample millage total for Dade City, Brooksville, or unincorporated Pasco or Hernando in this guide, because those rates change annually and vary by taxing district. Pull the current rates from the property appraiser or the TRIM notice for the specific parcel, and ask the appraiser what a post-sale assessment would look like.

That estimated tax is a carrying cost. It feeds net operating income, debt service coverage, and the price a buyer can pay. See net operating income and cap rate for how a higher tax bill moves those numbers.

What to put in the file

• The current property appraiser record: just value, assessed value, taxable value, and any agricultural classification or exemption, with a note on who holds them.
• The most recent TRIM notice and the most recent tax bill, plus a written estimate of the post-sale assessment.
• The combined millage for the parcel's taxing districts, with the school portion identified separately.
• If the land is classified agricultural, the seller's filing history and a clear decision on whether the buyer's use will support a new March 1 application.
• The contract language on tax prorations and whether the maximum discount is assumed.
• Calendar dates for the TRIM mailing, the 25-day petition window, November 1 due date, the discount months, and the delinquency date.

If you are preparing a property to sell, have this explanation ready, because a buyer or a lender will ask. See how to prepare a commercial property for sale.

Common questions

Will my property taxes go up after I buy a commercial property in Florida?

They often do. Under s. 193.1555, non-residential property is assessed at just value as of January 1 of the year following a change of ownership or control. The prior owner's 10 percent assessment limitation does not transfer. The size of the increase depends on how far apart the old assessed value and the new just value are, and on school millage, which is not subject to that cap.

What is a TRIM notice, and is it a tax bill?

It is the notice of proposed property taxes required by s. 200.069. The statute requires it to say "DO NOT PAY - THIS IS NOT A BILL." It is usually mailed in late summer under the timetable in s. 200.065. The actual bill is issued later and is due under s. 197.333 on November 1, or as soon as the tax collector receives the certified roll.

How do I estimate taxes on a property I am buying?

Estimate just value as of the next January 1 after the sale, subtract only exemptions that will apply to you, then multiply taxable value by the combined millage and divide by 1,000. Do not use a classified agricultural value if that use will end, and do not assume the 10 percent cap will limit school taxes. Ask the Pasco or Hernando property appraiser to review the estimate.

What if the land has an agricultural classification?

File, or confirm, the classification under s. 193.461 if you will keep a bona fide agricultural use. The deadline is March 1, with a limited late path after the TRIM notice. If the land is diverted to a nonagricultural use, the property appraiser must reclassify it, and the assessment moves off the agricultural value. Confirm that any existing classification belongs to the current use and the current owner.

How long do I have to challenge the assessed value?

Start with the property appraiser after the TRIM notice arrives. A petition to the value adjustment board under s. 194.011 must be filed on or before the 25th day following the mailing of that notice. Put the deadline on the calendar when the notice shows up. Do not wait for the November bill.