City of Ocala Non-Ad Valorem Fire Assessment Frequently Asked Questions

QUESTION: What is a non-ad valorem assessment?
ANSWER: A non-ad valorem assessment is a special assessment levied on real property, but which is not based on the value of your property. Non-ad valorem assessments are charged to cover the cost associated with a specific benefit to property. In this case, it is Fire Rescue services.

QUESTION: Why is the City implementing the assessment?
ANSWER: The City used to charge a Fire User Fee that was billed on the municipal services bill. The City discontinued collecting that fee in July 2020 due to a legal challenge. The fire assessment is being implemented to replace that lost revenue. The Fire Assessment revenue is needed to supplement the ad valorem property tax revenue used to fund the rest of Fire Rescue’s budget.

QUESTION: How much revenue will the City generate from the assessment?
ANSWER: The City expects to generate $9.2 million from the assessment for the current fiscal year. Ocala Fire Rescue’s budget for Fiscal Year 2020-2021, which is October 1, 2020 to September 30, 2021 is roughly $19.4 million.

QUESTION: Is there another way to generate the revenue needed?
ANSWER: Another option to generate the revenue is through an increase in ad valorem property taxes. However, the advantage of generating the revenue by the Fire Assessment, rather than a property tax increase, is that properties which may be exempt from paying property taxes but benefit from fire protection are still subject to paying the assessment. Therefore, the costs are more equitably spread to all who benefit from Ocala Fire Rescue services. The Fire Assessment will also be a more stable levy and revenue source as it will not fluctuate with property values.

QUESTION: Who is responsible for paying the Fire Assessment?
ANSWER: Assessments are the responsibility of the owner or owners of the property subject to the assessment. So, each property owner will pay the assessment in a fashion similar to paying their property taxes. The City does not charge Fire Assessments to renters, lessees, or other non-owners of the property.

QUESTION: How was my billed amount determined?
ANSWER: The City used an outside consultant, Tindale-Oliver & Associates, to conduct a Fire Assessment study to determine eligible costs that could be recovered through a fire assessment. Residential properties pay a flat rate per dwelling unit while non-residential rates are tiered based on square footage per parcel.

QUESTION: When will I receive a bill for the assessment?
ANSWER: The bills for the rest of the current fiscal year were mailed in early March. Beginning with the assessment for Fiscal Year 2021-22, and for future years, the Fire Assessment will be billed on your property tax bills sent by the Marion County Tax Collector in November of each year.

QUESTION: What if my mortgage company pays my taxes?
ANSWER: When the property owner pays property taxes through escrow, the mortgage company will be billed by the City and you will receive a copy of the notice. In the future, the Fire Assessment will be on the same bill as the property taxes and will be paid by the mortgage company. But you are still responsible for paying the Fire Assessment if your mortgage company does not pay.

QUESTION: What happens if I don’t pay the Fire Assessment?
ANSWER: If not paid by the deadline on your bill, the unpaid Fire Assessment, with applicable fees, interest and penalties, will be included with next year’s Fire Assessment on the next property tax bill. In future years, the City will be using the tax bill collection method. Florida law requires that ad valorem taxes and assessments on the tax bill be paid at the same time. Failure to pay your full tax bill will result in the Tax Collector issuing a tax certificate against your property and can result in loss of title to the affected property.

QUESTION: If I do not pay taxes now due to the homestead exemption or other exemptions, will I have to pay the special assessment?
ANSWER: Yes. Special assessments are legally different than taxes. The Fire Assessment applies to all residential and all non-residential property uses, regardless of homestead or other exemption status.

QUESTION: What is the mailing address for payments and why is it located in Miami?
ANSWER: The City of Ocala contracted with a company, Munilytics, to bill and collect the Fire Assessment for the current year. The remittance address for payments is as follows:

Munilytics – City of Ocala
P.O. Box 25775
Miami, FL 33102-5775

QUESTION: Can I make a payment in person at the City of Ocala’s Customer Service Center?
ANSWER: You may drop off a check or money order to the Customer Service Center which will then be forwarded to Munilytics for processing.

QUESTION: What if I have questions about the Fire Assessment?
ANSWER: Please call 954-903-0712 and select option #4: Special Assessment or by email at: ocalafire@munilytics.biz