Property Taxes 85% or Just Value Assessment? (Orlando, Homestead: houses, neighborhood, buying)

[pianogal]

I was under the impression that property taxes were based on 85% of the market value of the home. I just checked my 2008 taxes and am paying 100% of assessed value...minus a very small reduction for save our homes. Last year SOH 'saved' me $92,000 of supposed 'value.' This year that was reduced to $19,000 because the assessed value of my home dropped $63,000.

Does anyone know exactly how this works? I know for sure I would not be able to sell my home in this market at the value the city of Orlando has it assessed.

[AvgJoe]

You can read up on the SOH from the link below.

AMENDMENT 10 - Save Our Homes (http://www.leepa.org/amendment_10.htm - broken link)

To me, SOH is basically an illusional number that the FL government calls 'saving' as if you are buying your property again at the market price. They use this formula to calculate the 'saving'

(Market Value - Assessed Value) * Millage Rate

The SOH will increase your assessed value up to 3% every year. So if your millage rate (depends on municipal guidelines) stays the same, I'll bet your property tax will increase. And guess this...if you market value falls below your assessed value, the county will use your assessed value as a benchmark to tax you for the following year.

When you sell your home, the value of the house will base on the comps of the houses sold in your neighborhood. It may not be the same as the certified market value on your tax bill.

[Guntersville Boomer]

I got this off of the Florida Department of Revenue site:


The Formula for Determining Your Property Tax…

Just Value (market value) – Assessment Limitations (e.g. Save Our Homes) = “Assessed Value”
Assessed Value – Applicable Exemptions (e.g. Homestead) = “Taxable Value”
Taxable Value X Millage Rate = Total Tax Liability

Example: Assume Homestead A has a market value of $400,000, an accumulated $100,000 in Save Our Homes protections, a Homestead Exemption of $25,000, and the millage is 20 mills:

• $400,000 – $100,000 = $300,000
• $300,000 – $25,000 = $275,000
• $275,000 X .02 = $5,500 (Total Property Taxes)

From what I can see, the value is to be based on fair market value, not a % of fair market value. If you think your value assessment is too high, you need to appeal it to the Value Adjustment Board thru your Property Appraiser's Office.