TRIM stands for “Truth and Knowledge” and is used to disclose the tax bill based on market value minus the traditional cost of sale from the seller side of the transaction (just value).
In other words, it takes market value into account but considers typical closing costs that would be incurred if a property were to sell. This allows for taxing only the net asset/proceeds value.
In Florida, it’s not mandatory that a seller pays the documentary stamp tax on the deed and other ancillary closing costs. However, this is customary for most sellers. The TRIM process takes these traditional costs into account when disclosing a tax bill, allowing for the assessment of just value to be based on net proceeds from a property sale.
This ensures that property owners are only taxed on the net value of their assets instead of having to pay tax on the gross market value. It allows for a fair assessment for everyone involved and helps to keep taxes in line with current market values.
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