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How can a potential home buyer guesstimate the RE taxes on a home in Florida? Specifically, in the Sarasota, punta gorda, port Charlotte areas?
From viewing online listings, I see a HUGE disparity in current RE taxes between properties that are similar in size, zip code, and price. I now realize that what is listed as current taxes is affected by the homestead exclusion. I now realize that some communities have an additional community development fee.
When we looked at homes in Galveston, TX several years ago. The rule of thumb was RE taxes will be around 3% of the final purchase price. When we looked in Cape Coral, we were told about 1.7% was a reasonable guesstimate. In Arizona, the current taxes shown on the mls listing is accurate and will remain the same until they reassess every 12 months. And in most AZ counties you can go online to see years of history of the RE taxes on a specific address.
So how can we figure a guesstimate of RE taxes for these areas of Florida? Assume no homestead exemption.
Charlotte County Property Appraiser web site: Click on Frequently Asked Questions http://www.ccappraiser.com/
Property Tax Disclosure: Buyer should not rely on the seller's current property taxes as the amount of property taxes that the buyer may be obligated to pay in the year subsequent to purchase. A change of ownership or property improvements triggers reassessment of the property that could result in higher property taxes. If you have any questions concerning valuation, contact the county property appraiser's office for information. The home you are interested in purchasing may be homestead. Homesteading caps the tax assessments on the home during ownership. MLS records do not necessarily reflect current tax assessments.
To arrive at an estimateof the market value: if the purchase price represents an arms-length transaction, subtract the typical costs of sale and purchase, (commissions, etc.), from the sales price. Multiplying the estimate of market value by the total millage rate for the previous tax year will give you an idea of what your ad valorem taxes may be. If you are entitled to the homestead exemption you may, with certain exceptions multiply $50,000 by non school millage rates and $25,000 by school millage rates to arrive at an approximation of your tax savings from the homestead exemption. To find the most recent applicable millage rates, go to Property Record Search to locate your property and click on the “Tax Districts” button. The actual appraised value may differ from this estimate and the millage rates may change. Remember that non-ad valorem fees may also apply to your property.
Appraised Value And The Tax Rate
The Property Appraiser is neither a Taxing Authority nor the Tax Collector and has nothing to do with the amount of taxes levied or collected. However, as a property owner, you are not only interested in what value the appraiser places on your property, but also in how the amount of taxes you pay is determined.
This is the way it works:
Let's say the Property Appraiser has found the assessed value of your home to be $75,000. You apply for and receive the homestead exemption, so $25,000 is deducted from your assessed value, leaving a taxable value of $50,000 (due to "Save Our Homes" requirements your property's just value could be greater than or equal to assessed value).
Now, let's assume that the tax rate in your community has been set by the Taxing Authorities (city, county commission, school board, special districts, etc.) at 15 mills. That's $15.00 in taxes for each $1,000 of taxable value.
Divide your property's taxable value, $50,000 by $1,000 and the answer is 50.
Multiply that by the tax rate, $15.00.
$15.00 x 50 = $750.00
That is the amount of "ad valorem" tax due on your home. Your total tax bill may also include non "ad valorem" assessments for services such as garbage collection, road maintenance, and fire protection. Discounts are allowed for prompt payment. If paid in November 4%, December 3%, January 2%, February 1%.
Taxes are based on the assessed value, minus homestead exemption [if you qualify] plus non ad valorem fees for items that pertain to your community area.
If you are purchasing a home and a current FL home owner with homestead exemption, the assessed value is reduced by any SOS amount you may have remaining on your current home.
If you are a new purchaser, the property appraiser can assess any amount they want as the new value.
Ad valorem taxes are split between two values, general county operations with a $50,000 exemption and schools with a $25,000 exemption.
Example of a home assessed at $150,000 in a non incorporated area.
General- $150,000 minus $50,000 equals $100,000 divided by 1000 equals 100 x 4.99 millage rate equals $499 [this millage rate might be slightly higher for additional items, but does not include [cities]] If you purchase in City of Sarasota, add 3.19 millage, City of Venice, add 3.00 millage, City of North Port, add 3.34 millage, Longboat, add 1.95 millage
Schools- $150,000 minus $25,000 equals $125,000 divided by 1000 equals 125 x 7.90 millage rate equals $987
For a home owner living in a non incorporated area, add about $400 for non ad valorem items [ fire rescue, trash collect, storm water] The taxes on that property would be about $1900
If you live in a community/area that has additional non ad valorem items [lighting, water, sewer installed, stormwater] add that amount. If you purchase in a CDD, add about $1500-$2000 [amount set by the community]
If you do not qualify for homestead exemption, add about $950 to the general/school amount.
As an extreme example, if you purchased a home assessed at $150,000 in North Port in Bobcat/Plantation/Lakeside as a 'snowbird' your total yearly outlay could be as high as $4800
I'm an ex-accountant and MY eyes are starting to cross. There's no easy answer to this question to use as a guideline, I guess? Meaning: when looking at properties on the MLS or in person, the RE taxes remain a mystery until you sit down and go thru all of THIS?
Location: Sarasota/ Bradenton - University Pkwy area
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It may be easier for you to understand the property tax bills if you can look at an actual tax bill for a property to see the breakdown of the ad valorem and non-ad valorem portions of the tax bill. The ad valorem portion of the tax bill is based on the property's taxable value (market value less homestead and/or other allowed reductions) multiplied by the millage rate set by the various taxing authorities. These taxing authorities include the county or city, school districts, sheriff, mosquito control, etc. It is based on a calendar year of Jan 1 - Dec 31. The non-ad valorem portion of the tax bill is not based on property values, it is based on some other unit of measurement such as lot square footage or number of dwellings on a lot. These include things such as trash, fire districts, drainage districts and special lighting districts. The fiscal year for the non-ad valorem taxes in Sarasota county runs October 1 to September 30th of the following year. I know, it's confusing.
Each January 1st, the county property appraiser establishes the market value of all properties within the county. In August the various taxing & levying authorities give proposed budgets and thereby proposed tax millage rates for each taxing authority on the TRIM notice. There is a set time period for hearings by each taxing authority at property owners may voice opinions and objections to the proposed budgets. There is also a time period in which the property owner may file a formal objection to the assessed market value. The finalized tax bills are sent out in November.
As I said in the previous paragraph, the TRIM (Truth in Millage) notices come out in mid August and will also be posted as a link from the property address at that time on the county property assessor's web site.
Manatee's (Bradenton, Anna Maria) property appraiser web site is: www.manateepao.com/Main/Home.aspx click on "property search" at the top.
What gets confusing is that properties that are homesteaded under the Save Our Homes have annual caps (3% or the increase in the Consumer Price Index, which is 1.5% for the 2011 tax bills) on how much the assessed value may be increased each year. When a property is sold, the previous homestead is dropped at the end of the year and a new value established for the property as of January 1. That's one of the reasons you can look at the property taxes for 2 almost identical homes in the same neighborhood and they can have totally different tax bills -- one owner may have been there for 10 years and the 2nd owner may have bought the home a year ago.
Recent changes to the Save Our Homes makes them portable, so homeowners can "move" their homesteaded value to their next homesteaded property in FL. It would be easier to have you read about that on the property appraiser's web site than try to explain it here.
I hope this helps clear up some of the confusion regarding FL property taxes for you.
I'm an ex-accountant and MY eyes are starting to cross. There's no easy answer to this question to use as a guideline, I guess? Meaning: when looking at properties on the MLS or in person, the RE taxes remain a mystery until you sit down and go thru all of THIS?
Jk,
If you can find the Owner of the property you are interested in, you can find the whole breakdown of what comprises the taxes by doing the following:
Go to the Tax Collectors Website Sarasota County Tax Collector
Click on Property taxes
Type in the persons name, last name first
Like
BRASWELL, MICHAEL D
Then hit the "Go" button
Then the information will appear.
Including whether or not the person paid their taxes in prior years.
You still need to consider if you will declare this to be your primary residence (homestead). This will reduce your taxes substantially, as I noted earlier, and it will also impact your property insurance cost as well.
Remember, Florida has no State income tax. That helps too.
Hi, I see you were looking in Galveston Tx. Most people that look there and Florida are looking at mostly waterfront. In Florida just remember that the house on the water will also be a whole lot more in taxes for the same size house with the same features as that house on a dry lot right across the street from you. Don' forget insurance it can be a killer also on the water. When you are not homesteaded the taxes can go up really quick. This state loves to have snowbirds and investors pay for the right to live on the water. Unless you can homestead the house and use it 6 months a year it is not worth buying even with the low prices Florida has now.Carrying costs can get just to high on your home.But that is not including renting the unit.That would be just using it as second home.I was run out of Florida in 2005 on my gulf front home due to no homestead.Taxes and insurance went wild on a home I only used 1 month out of the year. I bought again last year on the water and this time I am homesteaded. But either way the state is still great for a warm retreat.
There is no rule for Homestead that says how many days or months you must live in the FL home. It just states that it is your primary residence. Nothing anywhere as far as law states you must live there at least 6 months a year. You could possibly travel in an RV 6 months out of the year and maybe have a lake house in MI for 2 months and live in your FL residence for 4 months in the winter and you can still homestead in FL. The FL home is your primary home. The MI home is your summer vacation home and you RV the rest of the time.
There is no rule for Homestead that says how many days or months you must live in the FL home. It just states that it is your primary residence. Nothing anywhere as far as law states you must live there at least 6 months a year. You could possibly travel in an RV 6 months out of the year and maybe have a lake house in MI for 2 months and live in your FL residence for 4 months in the winter and you can still homestead in FL. The FL home is your primary home. The MI home is your summer vacation home and you RV the rest of the time.
That may be true, but you have to DECLARE it as your primary residence in order to get the Florida homestead exemption, and the insurance company asks you to inform them if it is your primary residence. They will verify if this is a fact. If you delcare it as your primary residence, you have to show that you ARE NOT declaring another property in another state as your primary residence in order to get the homestead tax exemption.
I was not retired like a lot of people with second homes in Florida and did not have the freedom to travel around. I still worked in another state. If you are not retired or very well off you just can't get primary residence in Florida that easy to apply for homestead. To be legal you have to have a car with Florida plates and Florida dr. lic. at all times insured. No other homesteads anywhere else husband and wife if married. Claim the property in Florida as your primary home on taxes. Most people that still work in other states will have trouble with getting the home classified as there primary residence. Thus no homestead. If it was that easy legally everyone would have the homestead exp.on there taxes in Florida. When you claim on your taxes the house in Florida is your primary you have to live there 6 months and a day to be legal (where you spend most of your time)if I remember right and can only rent it 2 or 3 weeks a year. I have owned 3 to 5 homes here and abroad since I was 20 and Florida has always been my pain on taxes. I was also born and raised in Florida and that only made it worse in my eyes.
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