Homestead Exemption Question (2011, credit, house)

[tjax1000]

I'm trying to understand the timing of filing for homestead exemption. We bought our primary, full time and only home in July 09. My understanding is that we will qualify next year.

However, I just got my tax bill, which is the bill for next year's taxes, correct? I believe I ended up paying the pro-rate for this year (July-Dec) when we closed on the house.

So when will the Homestead Exemption start saving me money? On the tax bill I will receive in fall of 2010? It seems like it should have saved me money on the tax bill I just received, since I thought that bill was for the year 2010. But that doesn't seem possible because the web sites I'm looking at say I can't file until Jan-March 2010.

Thanks for any clarity you can offer.

[TampaKaren]

Taxes are paid in arrears. You may apply for the Homestead Exemption at any time. You must be living in the house at January 1 and you must file prior to March for the current tax year. Assuming you've applied for homestead, the exemption will apply in your 2010 tax bill. In 2011, the 3% cap on tax increases will go into effect as well.

[tjax1000]

Ok, thanks for the info... I'll have to go back and look at my HUD but it sounds like the seller probably credited me for taxes and not vice versa? i.e., since I'm now paying the taxes for 2009 via the bill I just received, and I only owned the house part of the year?

Thanks again

[TampaKaren]

Yes, you're right. On Page 1 of the settlement statement, there should be a credit from the seller to you for his taxes from January 1 up to the day of closing (which typically belongs to the buyer). You are responsible for paying the current year's taxes in full.