If you have ever considered buying property in the state of Florida the following information will prove valuable. I will explain how residential properties are taxed in Florida.
In 1992 Florida residents voted for a Constitutional Amendment known as "Save Our Homes". This Amendment went into effect in 1995. Its purpose was to limit the increase in the annual Assessment of Homestead properties in Florida. The limit was set at 3% or the Consumer Price Index, whichever is less. For a property to qualify for the 3% Cap and the $25,000 Exemption it must be a residential property, and your primary residence. All other properties are not eligible.
Does the 3% cap limit property taxes? No, the cap is on the property's assessed value not on the taxes paid. A property's assessment could stay the same, go up or down.
What else effects my taxes? The mileage rate charged by a county and/or city will effect the tax rate. Example, if the assessed value doesn't change but the millage rate goes up, then the taxes will to up, as so if the millage rate goes down so will the taxes if the assessed value is unchanged.
Why do two very similar homes have a large difference in the taxes? The Homestead Exemption and the 3% Cap is why you can have 2 homes that are identical and yet have different taxes. The Homesteaded property's assessed value has been keep low by the 3% Cap.
When I sell my Homesteaded property what happens to the taxes? The property is reassessed and the new taxes are based on that assessement and of course the mileage rate at the time.
Amendment 1 passed on January 29th 2008. This Amendment raised the $25,000 homestead exemption to $50,000. Allows for portability of a homestead savings should a person move. Limits the amount that a non-homesteaded residential property's taxes can be increased. For more information on this subject go to www.sarasotaproperty.net and choose Amendent 1.
I hope that this information has been helpful. As always, when in doubt contact your Real Estate Profesional and or Real Estate Attorney.
