MSBU & MSTU Questions

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1.00 - All Questions

• 1.01) What are ad valorem taxes?

  Ad valorem taxes are property taxes that are based on the taxable value of real estate or personal property. Property ad valorem taxes are the major source of revenue for county and municipal governments. This tax is most commonly referred to as "property taxes".

• 1.02) What is a millage rate?

  A millage rate is the rate per one thousand dollars of taxable property value which, when multiplied by the taxable value, yields the tax billing for a given parcel.

• 1.03) What is a Municipal Service Taxing Unit (MSTU)?

  An MSTU is a service unit for which an ad valorem tax levy is imposed to cover the cost of providing a service or improvement, based upon taxable value. MSTUs have been established by the Board of County Commissioners through an adopted ordinance or resolution that outlines the boundaries of the district and the services or improvements to be provided.

• 1.04) What are non-ad valorem assessments?

  A non-ad valorem assessment (also known as a special assessment) is a charge to cover the cost of providing a service or improvement, based on the relative amount of benefit received. Special assessments are typically not related to ad valorem value.

• 1.05) What is a Municipal Service Benefit Unit (MSBU)?

  An MSBU is a service unit which receives a specific benefit for which a special assessment is imposed to cover the cost providing the service or improvement. MSBUs have been established by the Board of County Commissioners through an adopted ordinance or resolution that outlines the boundaries of the district and the services or improvements to be provided.

• 1.06) Why is the County converting MSTUs to MSBUs?

  The County believes a special assessment (MSBU) is inherently more fair than an ad valorem tax (MSTU), because the assessment is based on the special benefit the property owners receive and not their taxable property value.

• 1.07) How will the existing MSTUs and MSBUs be handled?

  If stormwater is the only service provided by the MSTU or MSBU, it will be replaced by a new stormwater MSBU. If other services are provided, the taxes or special assessments funding stormwater will be eliminated, but the MSTU or MSBU will continue providing other services.

• 1.08) What services are received for the assessment and why is there a special assessment when residents already pay property taxes?

  Countywide ad valorem property taxes are imposed against all property in the county to fund general services to Osceola County residents. Since it would be unfair for all county residents to pay for the maintenance of local improvements within specific communities, special assessments to fund the cost are imposed only against property benefiting from the common areas. Local improvements maintained from special assessment revenue may include retention ponds, street lighting, and recreational areas.

• 1.09) How can citizens find out about the specific services/level of services that are provided by their neighborhood serving MSTU/MSBU?

  For information regarding specific level of services provided under an MSTU or MSBU to your neighborhood, please contact Osceola County Special Assessments at 407-742-1800 or servicefee@osecola.org.

• 1.10) Who owns the street lights paid for by an MSTU or MSBU?

  The lights and poles are owned by the utility company. A monthly maintenance fee is charged on the utility bill in order to maintain the lights and poles.

• 1.11) Are electric rates less for the County than for a non-governmental entity or individual?

  Special rates are not given to Governmental entities'. The only difference is that government entities’ have the tax exemption status.

• 1.12) Can more street lights be added in a neighborhood that has a MSTU or MSBU?

  The utility company would have to re-evaluate your neighborhood and determine if additional lights are needed. If the utility company determines a need for additional lights within the approved boundaries of the MSTU or MSBU, the requestor should contact Osceola County Special Assessments at 407-742-1800 or servicefee@osceola.org for more information.