Florida Property Tax Relief
A proposed constitutional ammendment Tallahassee is underway. Please contact your state legislators to tell them to pass this amendment. This is good for homeowners. Homeowners need a break. Preserve your property rights. Call today.
If this ammendment is passed this is what it will mean to you:
If you are Florida resident and your home is your homesteaded property you will be getting a super exemption. Right now your exemption is $25,000. Depending on the fair market value of your home your exemption will range from 15% to 30%.
So if your home has a market value of $300,000 and you are being taxed for the value of $250,000 you will get a super exemption of $45,000 which will make your taxable amount $205,000.
If you own a home that is valued at $300,000 and you are being taxed at $200,000 your exemption will be $37,500 so your revised taxable value will be $162,500.
If you have lived in your home for a long time with a value of $300,000 but are being taxed at $145,000, your super exemption will be $21,000 for a new taxable value of $124,000. But because that is less than the Save Our Homes benefit of $105,000 the exemption would not apply in your case.
If you are a snowbird who paid $45,000 for a condo but that condo is now worth less than $25,000 you are not going to get the exemption. The property is less than the exemption. If the property value rises over 7% then you will get a snowbird exemption.
If you have lived in your home for a long time and your home is valued at $1 Million but taxed at $700,000 you will get a super exemption of $67,500 and then your new taxable amount will be $632,500. But you will not get the super exemption because your Save Our Homes exemption would exceed the super exemption. Your Save Our Homes exemption is $250,000 in your case.
You can not get both the Save Our Homes exemption and the Super exemption. Your Save Our Homes exemption is deducted from the Super Exemption. If your Save Our Homes Exemption exceeds the Super exemption you don’t get to take the super exemption. If it does not exceed, then you get to subtract the Save Our Homes exemption from the Super Exemption.
The reason for this is because Florida does not want to punish new homeownership. Those who have lived in their homes for a long time will not be punished either. They were careful to make sure the exemptions would help both existing and new home owners. The other thing they did not want to happen is for longtime homeowners to sell their homes to buy a new one with a better exemption. This is an equal exemption.
The best part of the ammendment is that the tax appraisers can not increase assessed values no matter whether it is owned by a non Florida resident or a homesteaded resident for more than 7% per year. Snowbirds will not be taxed at the appraised increases of 10% per year that is the current rate of increase when prices increase but they will be topped out at 7% at the most if the property value goes up by 7% per year or more.
If this ammendment passes the legislature it will go to the voters. Cities and counties of course are not happy about this ammendment because that will mean less revenue for them. I have never understood why cities and counties don’t privatize more of their projects and services. That is the best way to cut out expenses and lower everyone’s taxes.
This comes down to being a private property rights issue. As Realtors® we promise by joining the NAR to uphold and defend private property rights. Make 2012 the year that you take action for private property rights. Pay attention to your state legislators and your local and county rules. Be involved. Get educated about private property rights. Get ready to defend property rights.
Having a fair tax system enhances the free transferability of property. Cities and counties will make up for the losses of income through taxation through economic growth and people spending their money in their locales.
Katerina Gasset is the author of http://www.wellingtonfloridashortsales.com. Katerina Gasset is the homeschool mother of 9 children and wife to Nestor Gasset. Katerina Gasset is also a writer, author, speaker, Realtor®, SEO coach, blogging coach and business entrepreneur and consultant.