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The homestead exemption has nothing to do with marital status. You get $25k off the assessed value for all school-related taxing authorities and $50k off all the remaining taxing authorities. Once the exemption amount is applied, the new taxable amount is multiplied by the taxing authority's millage rate and you get the tax due. Add up all the lines and you get the total ad valorem tax.
It's worth it to Google your county's tax appraiser office and read all the info on homestead, save our homes, portability, etc.
Thanks for the clarification. I apologize if I was off, I just wanted to clarify the prior statement that I quoted.
Where is the best place to find this out? The county appraisers says it will be reassessed when the deed changes hands but not before. We all know a couple can homestead for a 50k deduction, the save our home assessment gets reset. But does it reset to the fair market value listed on the county appraisers list?
If the previous owner lived there for thirty years, a $3,000 tax bill will go to about $14,000 in this case. Does that sound right? Cases like this must be a deal breaker for many.
Find non homestead homes in the same town you want to buy that cost the same as the home you want to buy. Unless you close before March 1 you will lose the homestead deduction for that year. Also your mortgage calculations will be calculated against the full amount of taxes you should owe. In my case I closed a month after Homestead exemption. I qualified since January, but I'm still paying into escrow monthly for taxes because the town I live in does not do their budget until July so my new payment won't be calculated until them, but I think after that it should be okay. and I should get back any over payment.
Just a clarification...you must close before 12/31 to apply for the following year's exemption but you must apply before March 1st. You only need to do it once for each property you live in, BTW.
It not make sense to some, but a $3500 tax bill that goes to $14000 just because the deed changes hands is a deal breaker for me. Even if i could afford it. The homestead deduction is meaningless when the "save our homes" deduction is reset.
I'm not in Collier but I've never seen a jump of that size. Have you called the property appraiser office? Normally, they won't tell you what your taxes will be but I think you can probably get someone who will explain the way it will work.
If it were me, I'd call and ask to speak to the person who is best at explaining how SOH works and resets. That will probably get you someone who will take the time to give you a pretty good estimate. I wouldn't say "What will be my tax?" I'd say "Can I give you an example property and have you walk me through the calculation?"
It not make sense to some, but a $3500 tax bill that goes to $14000 just because the deed changes hands is a deal breaker for me. Even if i could afford it. The homestead deduction is meaningless when the "save our homes" deduction is reset.
I have never seen that large of an increase for the new home owner. The "Save our Homes" deduction is to protect the current homeowner, not the new owner.
While there is likely an increase in taxes for the new buyer, the taxes are paid by the prior homeowner up to the date of closing and the new homeowner pays taxes after the purchase based on the current rate. There may be an additional tax assessment that will paid by the new owner at a later date. So at most closings, both parties pay their share of taxes as closing costs unless negotiated in the sales contract.
I am not an attorney and I don't play one on TV, just offering an opinion from my experience. If you are that concerned, hire a real estate attorney for legal advice. Best wishes.
If it were me, I'd call and ask to speak to the person who is best at explaining how SOH works and resets. That will probably get you someone who will take the time to give you a pretty good estimate. I wouldn't say "What will be my tax?" I'd say "Can I give you an example property and have you walk me through the calculation?"
Good advice, the local municipality can confirm the millage rate for the location of the property. It will give the rate per $1000 of property value and that is the closest the OP will get.
Good advice, the local municipality can confirm the millage rate for the location of the property. It will give the rate per $1000 of property value and that is the closest the OP will get.
Yes I did call the county. The mill rate is 11.28. She said the SOH would be added back into the taxable value which is all listed on the site for that address. She didn't want to talk too much, too busy. I still may be figuring it wrong though it seems clear.
I don't have any background to offer guidance/definite information, but here's a question that you may want to research further yourself:
Is there a distinction between "market value" and "taxable value" that you're overlooking?
If you pull up the TRIM notice for the property, are the market value and taxable value very different for that particular property? (Does the latter but not the former reflect the seller's save our homes (SOH) benefit?) But (in your calculations) are you thinking of them as the same?
The following is just based on my very limited understanding, which could be wrong. I've owned a Florida home and sometimes consider buying another one, so I've gone through the process myself during a home search of trying to understand what my taxes would be on any home I'd buy, but of course I could be wrong in what I think I understand (wouldn't be the first time ):
Assuming you don't qualify for some degree of assessment reduction due to the "portability" that some people may have under certain circumstances as a result of previously owning a Florida homestead, it makes sense to me that someone would tell you that the SOH assessment reduction that the present owner has would no longer apply (so you'd need to add it back into the taxable value to get your assessment). But I'm confused about why you would (per your above post--post #7 in this thread--about how you did your calculations) add it back into the market value. That doesn't make sense to me.
But again, I have no expertise and am just pointing you to something you might want to look into further yourself and question the professionals about.
Another question I have (that may be relevant to your calculations) that maybe someone with more knowledgeable can speak to is this:
For a person who buys a home now, given that they were not already in the home last January 1, does their eligibility for homestead assessment reduction not kick in until 2018 taxes? (That is, will it be based on the 2018 market value, which won't be known for some time?) Because if this is the case, then I would want to know about price trends for the particular location and segment of the market I'm looking in, to get an idea of whether the future market value of the home I'm considering buying could be much higher.
Again, my understanding is just as a previous homeowner, so I could be misunderstanding something. Hopefully if my understanding about any of this is wrong, someone will correct me. I agree with an earlier poster who said to read the info on county property appraiser websites in depth. I've found myself (in all kinds of situations) that this can help immeasurably in fully understanding answers that you get (and knowing what follow-up questions to ask) when you're talking to professionals/knowledgeable people.
By the way, I've lived in Southwest Florida for many years, and there are many things to appreciate about this area. Naples/Collier County is above my budget, but for someone with a much higher one (as you have), I think it's definitely worth the time to research these issues and see if it could work for you.
But do also look into the present cost of homeowner's insurance and any present or future flood zone/flood insurance considerations in looking at any home in this area (and think about future possible costs too).
I don't have any background to offer guidance/definite information, but here's a question that you may want to research further yourself:
Is there a distinction between "market value" and "taxable value" that you're overlooking?
If you pull up the TRIM notice for the property, are the market value and taxable value very different for that particular property? (Does the latter but not the former reflect the seller's save our homes (SOH) benefit?) But (in your calculations) are you thinking of them as the same?
The following is just based on my very limited understanding, which could be wrong. I've owned a Florida home and sometimes consider buying another one, so I've gone through the process myself during a home search of trying to understand what my taxes would be on any home I'd buy, but of course I could be wrong in what I think I understand (wouldn't be the first time ):
Assuming you don't qualify for some degree of assessment reduction due to the "portability" that some people may have under certain circumstances as a result of previously owning a Florida homestead, it makes sense to me that someone would tell you that the SOH assessment reduction that the present owner has would no longer apply (so you'd need to add it back into the taxable value to get your assessment). But I'm confused about why you would (per your above post--post #7 in this thread--about how you did your calculations) add it back into the market value. That doesn't make sense to me.
But again, I have no expertise and am just pointing you to something you might want to look into further yourself and question the professionals about.
Another question I have (that may be relevant to your calculations) that maybe someone with more knowledgeable can speak to is this:
For a person who buys a home now, given that they were not already in the home last January 1, does their eligibility for homestead assessment reduction not kick in until 2018 taxes? (That is, will it be based on the 2018 market value, which won't be known for some time?) Because if this is the case, then I would want to know about price trends for the particular location and segment of the market I'm looking in, to get an idea of whether the future market value of the home I'm considering buying could be much higher.
Again, my understanding is just as a previous homeowner, so I could be misunderstanding something. Hopefully if my understanding about any of this is wrong, someone will correct me. I agree with an earlier poster who said to read the info on county property appraiser websites in depth. I've found myself (in all kinds of situations) that this can help immeasurably in fully understanding answers that you get (and knowing what follow-up questions to ask) when you're talking to professionals/knowledgeable people.
By the way, I've lived in Southwest Florida for many years, and there are many things to appreciate about this area. Naples/Collier County is above my budget, but for someone with a much higher one (as you have), I think it's definitely worth the time to research these issues and see if it could work for you.
But do also look into the present cost of homeowner's insurance and any present or future flood zone/flood insurance considerations in looking at any home in this area (and think about future possible costs too).
Best of luck to you, whatever you decide.
It's too late for me to edit this post, but I've tried to make paragraph 5 a bit clearer (additions are bolded):
Assuming you don't qualify for some degree of SOH portability assessment reduction that some people may be entitled to apply for under certain circumstances as a result of previously owning a Florida homestead, it makes sense to me that someone would tell you that the SOH assessment reduction that the present owner has would no longer apply (so you'd need to add it back into the taxable value ... ). But I'm confused about why you would (per your above post--post #7 in this thread--about how you did your calculations) add it back into the market value. That doesn't make sense to me.
When things are this complicated and it's an area where I don't have qualifications/professional expertise, I'm reluctant to post, and if I do, it's with abundant "do not take this as necessarily correct--just my own understanding" caveats. But I posted in the hope that my thoughts may point you in a direction to investigate some things yourself that may be helpful to you, even if my understanding and/or way of expressing whatever I do understand unfortunately falls short of what would be ideal!
Last edited by City__Datarer; 06-01-2017 at 04:49 AM..
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