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.
Attention: Wellington Homeowners in Foreclosure or behind on your payments.
If your loan is being serviced by Bank of America- the nations largest mortage servicer- you may just happen to qualify to get up to $20,000 to do a short sale instead of waiting for the day you lose your home to foreclosure.
You must have your short sale submitted before November 30, 2011 in order to qualify for minimum payout of $5000 and up to $20,000. You get the $20,000 or less at a successful closing of your short sale which also means you will need to move out of your home.
Your home will need to get listed with a real estate agent or broker who knows how to negotiate short sales. You also have to submit your request to do a short sale without an offer.
Your closing date has to be before August 31, 2012 in order to qualify. There are pros and cons to submitting a short sale package without the offer. The biggest negative to this method is that in many of the cases where you start the short sale process prior to an offer, the bank gets a bad appraisal and asks us to list the house way above what it would ever sell for.
But it may just be worth the gamble for a $20,000 check in your hand at closing.
Why would the Bank of America do this? Because the foreclosures here in Florida are taking an average of 676 days to finish. There are two, three, four years before there is any resolve to many foreclosure cases.
The other reason the banks are offering this incentive is to help encourage you not to steal all the appliances and trash the house. If you accept the offer you also must promise to keep your home clean and in good shape and in tact.
This program is being tested in Florida by Bank Of America. If it works well here in Wellington and the rest of Florida they will consider offering this program in some other states.
If you have a Ginnie Mae, VA or FHA loan that is being serviced by Bank Of America you will not be able to get this incentive as those do not qualify for the program.
The best part about the Bank Of America Florida incentive program is that most of the time they are also going to waive any deficiency against you. Remember that all deficiency waivers come with one exception- if they believe you committed fraud, they can rescind on the deficiency waiver.
If you have a home in Wellington Florida or anywhere else in Florida and you are in the foreclosure process call us today to see if you may qualify for one of these cash pay out programs for doing a short sale at 561-753-0135. There is no cost and we are not attorneys and not giving legal advice. You call is totally confidential.