Additional benefits to Homestead Tax Exemption

 

                                    


As I mentioned in my post yesterday, when you receive Homestead Tax Exemption, besides saving money on your property tax bill, since 1995 you also get the benefit of “Save our Homes Act” which caps the annual increase in assessed value on your home to a max of 3% or the CPI, whichever is less.

In a growing real estate market like the one in Florida, where properties are increasing in value at a fast rate, having this added benefit can save you thousands over time, and it’s one of the reason why in the same neighborhood, two comparable homes can pay completely different amounts on their tax bill.

Be aware Homestead tax savings cannot be purchased, inherited, or transferred from the previous resident. When purchasing the home, assessed values will be recalculated at purchase price, you won’t be able to retain the low rate and therefore might see an increase from the previous tax bill if the former owner was benefiting from Homestead Exemption. However, once granted, you will also start benefiting from the Act, and overtime also create a big savings gap between your home’s assessed value by the County and the current market value of the home.

The longer you reside in your property, the larger the difference between market price and your assessed value, and the more savings you will realize. This gap is also known as the Homestead Assessment Difference and protects homeowners from large property tax increases.

Since 2008 thanks to the Portability provision, you may now transfer this savings to a new home due to downsizing, upsizing, or divorce. Later I will explain how Portability works.

Maria T. Villalobos
Realtor Associate - Public Notary
Cell. 786-285-5855
Info@BestMiamiHomes.net
www.BestMiamiHomes.net
www.Facebook.com/urmiamirealtor