Florida Clarifies Refund Calculations for Ad Valorem Tax Overpayments: PTO 25-06

Florida’s PTO Bulletin 25-06 sets out how refunds and interest must be calculated when ad valorem taxes are overpaid and corrected through the Value Adjustment Board process.

Introduction

In August 2025, the Florida Department of Revenue’s Property Tax Oversight (PTO) program issued Informational Bulletin 25-06, clarifying how refunds are calculated when taxpayers overpay ad valorem taxes and later receive relief through proceedings before the Value Adjustment Board (VAB). This bulletin implements changes from Chapter 2025-208 (House Bill 7031) and applies to the 2025 tax roll and beyond.

Good-Faith Overpayments

The bulletin specifies that only good-faith overpayments qualify for interest. This means the taxpayer must have paid the excess taxes honestly and without an attempt to avoid liability. Once an overpayment is recognized, the refund is due — along with accrued interest.

Interest Calculation Start Date

A key clarification is when interest begins to accrue. PTO 25-06 states that interest accrues not from the date of overpayment, but from the statutory delinquency date of the tax under Section 197.333, Florida Statutes. This ensures consistency regardless of when the payment was actually made.

Interest Rate Applied

The applicable interest rate is tied to the bank prime loan rate as of July 1 of the tax year, or the next business day if July 1 is not a business day. This annual rate is applied to the overpaid amount to determine the interest portion of the refund.

Refund Formula

The refund amount is calculated as:

Refund = Principal (overpaid taxes) + Accrued Interest

• Principal = the amount overpaid in good faith.
• Accrued Interest = calculated from the delinquency date through the date the refund is actually issued, using the July 1 prime rate.

Practical Impact for Taxpayers

For taxpayers and practitioners, this clarification is important because it standardizes how counties and the VAB must calculate refunds. Without this bulletin, inconsistent interest start dates and rates might have been applied. Now, both taxpayers and local governments have clear direction.

Conclusion

PTO 25-06 provides taxpayers and practitioners with a uniform approach to refund calculations for ad valorem tax overpayments. By pegging interest to the delinquency date and the July 1 prime rate, the Department of Revenue ensures fairness and predictability in the refund process.