What does the 10 mill cap refer to?

• A. Maximum assessed value
• B. Florida Constitution limit on local taxing authorities to 10 mills
• C. Minimum tax rate
• D. Maximum exemption allowed

Answer: (B)

Florida’s 10 mill cap is a constitutional limit on the rate local taxing authorities may levy for ad valorem property taxes. A mill equals $1 per $1,000 of taxable value, so a 10-mill cap means the maximum rate is $10 per $1,000 of value. This controls how much tax authorities can collect for operating purposes, not the property’s value itself, not a minimum tax rate, and not an exemption. Exemptions reduce tax liability but don’t set a higher or lower cap. For example, a property with $100,000 of taxable value at the 10-mill cap would be $1,000 in tax before any exemptions.