Cents & Sensibility: Alachua County’s Budget in Eight Chapters

With all the discussions happening across Florida about local government budgets, Alachua County is joining the conversation through this series: Cents & Sensibility: Alachua County’s Budget in Eight Chapters.

This series breaks down how the county budget really works, where the money comes from, how it’s used, and how decisions are made that affect daily life in our community. Each chapter explains one piece of the budget puzzle in clear, practical terms, because understanding your local government’s finances shouldn’t require a finance degree.

Chapter 3: Understanding Property Taxes

Recently, there has been considerable discussion statewide regarding property taxes. There is some confusion about the role property taxes play in determining county budgets. Some have likened property taxes to charging rent to people who have paid off their homes. A more logical way to think of property taxes is to consider your utility bills — you own your home, but you still pay for water, electricity, and the internet because you use these services.

Property taxes are how we all pay for our shared ‘utilities’: the roads we drive on, the parks we enjoy, the deputies and firefighters who protect us and the services that keep our county running.

Property Tax History

Florida counties have relied on the property tax as a local revenue source since Florida’s founding in 1845. The modern framework, however, dates to the 1968 constitutional revision. That overhaul authorized counties, municipalities, and school districts to levy ad valorem taxes and set millage rates to pay for programs and services.

How Property Taxes Work

Property taxes are levied on homeowners and commercial property owners based on the value of their land, homes and businesses. Each year, the Property Appraiser's Office determines a property’s value, and local taxing entities apply adopted tax rates, known as millage rates, to calculate the amount owed. One mill equals $1 for every $1,000 of assessed property value.

As was mentioned in Chapter 2, of the $278 million in the FY25 general fund, only $170 million came from the general fund property tax for services provided countywide. Another $34 million was raised by the Law Enforcement Municipal Services Taxing Unit (MSTU), which is paid by residents in the unincorporated area and some of the small cities. Although the county's total budget includes non-property tax funding sources, those other sources are more restricted and limited in their allowable use.

In Florida, counties are responsible for providing core services outlined in the state constitution, and we utilize both the general fund and MSTU property taxes to fund them. These services include:

  • Sheriff and jails (public safety)
  • Roads, sidewalks and other infrastructure
  • Court facilities and constitutional officers
  • Solid waste and recycling
  • Parks
  • Certain health & human services like Medicaid match
  • Long-range (comprehensive) planning & growth management

How Does Alachua County's Countywide Property Tax Compare?

  • According to state data from FY25, Alachua County ranked 41st among Florida’s 67 counties with a general fund millage rate of 7.618.
  • The average county taxpayer statewide paid $942 per capita, while Alachua County taxpayers paid only $714, ranking the county 32nd lowest in Florida.
  • Only 67.4% of Alachua County’s total property assessed value is on the tax rolls. The state average is 84%. Just seven counties in Florida have a larger share of property exempt from taxes.
  • If we were at the state average, our millage rate could have dropped from 7.6180 to 6.1045 while collecting the same revenue. For a $250,000 home, that would mean a savings of nearly $400 per year.

Where You Live Matters

Where you live within the county determines the amount of your tax bill.

A common misconception is that the Alachua County government is responsible for the entire tax bill. There are two different water management districts, nine cities, and the unincorporated area. Each of these entities is responsible for determining its own millage rate. The following chart shows all the variables. The cities that have “Law” next to their name have opted into the MSTU-Law Enforcement to receive expanded service from the sheriff.

The following chart illustrates how a property owner’s tax bill is apportioned for a property in the unincorporated area. In this example Alachua County is only responsible for levying the general fund and the sheriff's portion of each dollar.

The next chart shows an example of how the tax bill is apportioned if your property is located in the City of Gainesville. In this case, because the sheriff's portion drops off, the county is only responsible for about a third of your total tax bill.

Factors Limiting Property Tax Growth

There are many limitations that slow property tax growth. Homestead exemptions, including the general, senior, and disabled veteran exemptions, lower the assessed value of a primary home. Another is the “Save Our Homes” amendment, which caps the assessed value on your homestead at 3% or the Consumer Price Index (CPI), whichever is lower.

“Portability” allows homeowners to transfer up to $500,000 of accumulated Save Our Homes benefits to a new homesteaded property. The County Commission has limited tax growth by reducing the millage rate each of the last nine years.

Conclusion

Property taxes are how we invest in public safety, roads, parks, and all the services and programs that make Alachua County a community we can all be proud of. Strong homestead protections keep bills predictable, and your elected officials are directly accountable to you for every dollar collected and spent. An informed community is a stronger community and your voice shapes our shared future.

UP NEXT- Chapter 4: Unfunded Mandates

Catch up on previous chapters: