Types of Assessments
Non-ad valorem assessments are assigned to property for the purpose of funding the costs for specific improvements from which the property receives benefit. Most commonly, non-ad valorem assessments are assigned for improvements such as street lighting, solid waste collection and disposal, aquatic weed control in public waterways, road paving, and the extension of water or sewer lines. There are two types of non-ad valorem assessments associated with the Seminole County MSBU Program – term assessments and variable rate assessments.

Term Assessment
Termed assessments are collected from the properties receiving benefit from an improvement after the cost for the improvements have been incurred. Term assessments are related to construction projects that required extended financing over a period of years in order to enhance the affordability of the project for repayment by property owners. When an MSBU construction project (such as road paving or water line installation) is completed, property owners are given the option of paying the cost share in a single payment or by installment payments over a specified time period with a fixed interest rate.

When the installment method of repayment is selected, the full amount of the property’s cost share constitutes a lien. Installment payments are assessed and collected via the annual property tax bill until original cost share is paid in full. Provided the annual assessment is paid within the collection deadline, no lien action is enforced.

The balance on term assessments may be paid in full at any time. Property owners can obtain information regarding the pay-off amount by contacting the MSBU Program office. Following full receipt of full payment, a lien satisfactor document will be processed and mailed to the property owner.

Varibale Rate Assessments
Variable rate or open-ended assessments are assessments assigned to districts that do not have a fixed closure date and for which the assessment amounts are calculated annually. The dollar amount of variable rate assessments is based on the projected cost to provide continuation of the service or improvements in the forthcoming year. Assessments for solid waste collection and disposal, street lighting or aquatic weed control MSBUs are examples of variable rate assessments.

Variable rate assessments are typically assigned to the benefiting properties in advance of the costs being incurred. Provided the variable rate assessment is paid within the payment deadline, no lien action is enforced. Satisfaction of lien documentation is not distributed for variable rate assessment.

Payment Responsibility
Non-ad valorem assessments are assigned to property, not individuals. Therefore, for both types of assessments, at any given point in time, the current owner of the assessed property is accountable for paying assessments that are due. Since the non-ad valorem assessments are property specific, when a property sale takes place, the MSBU Program does not distinguish between former owner and new owner. The Program simply views the amount as being due from the current owner.

As a general rule, the County does not require payment of outstanding assessments prior to the sale of property. In most sale situations, payment of outstanding assessments is a negotiated settlement factor between the buyer and the seller. However, an exception to this rule is related to assessments that are delinquent through non-payment of property taxes. When property taxes or assessments are not paid by the statutory due date, a tax certification may be issued by the Tax Collector and a tax lien may be placed on the property for the delinquent amount. In these cases, the debt must be satisfied at the time of property sale.

Although Seminole County Government may not require payment of the assessment balance at the time of property sale, some mortgage companies may require lien satisfaction in order to finance or refinance the property. These assessment payment decisions are determined by property owners. The decision to make early payoff, as well as the decision regarding who will pay the assessment balance is between the buyer and the seller. If an assessment balance is to be paid, the MSBU program office must be notified so that a payoff amount can be determined. Following receipt of the final payment, a Satisfaction of Lien document will be provided.

Satisfaction of Lien
An MSBU assessment lien is satisfied by full payment. When a term assessment is paid in full, a "Satisfaction of Lien" document is prepared and processed by the County and recorded in Land Records at the County Clerk’s office. Once the processing is completed, the recorded Satisfaction of Lien document is mailed to the property owner on record at the time of payoff. When early payoff is desired, a payoff balance can be obtained by emailing or calling the MSBU Program office.

Variable rate assessments are satisfied when annual property taxes are paid. Satisfaction of lien documentation is not distributed for variable rate assessment.

Property Tax Year? Fiscal Year? Assessment year?
When the closing costs associated with a property sales are being calculated, questions often arise as to who (buyer or seller) should be financial responsible for various costs. Property taxes and assessments are often included in closing costs and settlement negotiations. Given the terminology differences in regards to property taxes (ad valorem taxes) and assessments (non-ad valorem assessments), and the differences as to how the two are levied and applied to operating budgets, the concepts can be a bit confusing. To challenge the situation further, there are different types of non-ad valorem assessments (fixed term and variable rate) that yield different implications in regards to the amount posted to the property tax bill. The following clarification is offered to assist property owners and prospective owners in making closing cost decisions:

• A fiscal year is different than the property tax year.
• The fiscal year (budgetary/financial operations) for Seminole County spans from October to September.
• A property tax year spans from January to December of any given year with taxes collected in arrears.
• Property tax bills are mailed in November of the current tax year and are due in March of following year.
• The assessment period for a variable rate assessment is not the same as the property tax year.
• Variable rate assessments are collected in advance while the property taxes are collected in arrears.
• Fixed term assessments are collected via annual installment payments The assessment period for fixed term assessment is not the same as the property tax year.
• The assessment period for variable rate assessments can be for fiscal year (budget year) or calendar depending on the specific assessment.
• A variable rate assessment is an ongoing assessment (year to year) for which the rate may change annually based on budgeted costs.
• Non-ad valorem assessments are due when property taxes are due & paid.

Example of Property Tax Year:

• The property taxes collected via the 2008 Property tax year are for tax year 2008 [Jan 2008 – Dec 2008] and are due March 2009.

Examples of Variable Rate Assessment & Service Year:

• A solid waste management assessment levied via the 2008 Property tax bill is for services/activities to be provided during calendar 2009.
• A street lighting assessment levied via the 2008 Property tax bill is for the operation of street lighting equipment to be provided during fiscal year October 2008 - September 2009.
• An aquatic weed control assessment levied via the 2008 Property tax bill is for services to be provided during fiscal year October 2008 - September 2009.

Examples of Fixed Term Assessment:

• A fixed term assessment include on the 2008 Property Tax bill represents an installment payment that is due relative to a prior debt for a improvement provided via a fund advance issued by the County.

Additional Information
For more information regarding how assessments and property sales impact each other, please email or call the MSBU Program office at (407) 665-7178.