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Old 07-03-2013, 03:22 PM
 
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Hubby and I are considering buying a house, renting it out for two years, and then moving in. (Complicated reasons not worth going in to)

The mortgage guy we talked to estimated property taxes at 1.25% of purchase price. Does this sound right?

Coming from a state that has legal limits the annual increase on property taxes, the idea that the assessor can assess it your property at whatever he or she wants is a little scary.

We think someone told us that the the assessor tends not to increase the value as quickly on an owner occupied home than a rental property. Did we misunderstand or make this up or is it true?

It would be in zip 34239 if that makes any difference.
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Old 07-03-2013, 03:40 PM
 
Location: Port Charlotte, FL
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Here is a link to the Sarasota County Property Appraisers web site that explains the process.
SC-PA.com - What We Do
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Old 07-03-2013, 04:06 PM
 
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The one thing I'm not liking about the system in Florida is that they punish you for taking care of your property.
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Old 07-03-2013, 04:18 PM
 
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Once it's your primary residence, you file a Homestead Exemption. Then there is a cap limit of 3 percent per year toward increased assesstment value that you are taxed on. But when the home sells the home reverts to the acctual assessed value for the new owner. However, if new owner has a homestead exemption, they will get the 3% cap starting from the day they file homestead.

if you rent it out for 2 years, your assessment can increase more than 3% for that 2 year period but you don't benefit, because you don't have homestead.

When real estate was booming, that 3% cap really helped keep taxes down. I suspect another boom is starting and that 3% will come in handy again.
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Old 07-03-2013, 06:34 PM
 
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Be very careful buying in Florida without homestead cap. The Tax man in Florida can be very bad to out of state owners. Then add insurance another bad problem. I had a home on the water in 2003 taxes went from 1200 to almost 7,000 in 2 years. I sold it and made a lot of money. Came back in 2010 when I could homestead and bought another waterfront home at the bottom of the tax rolls and capped it. This time they won't run me out for the taxes at least. Insurance may be another matter.
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Old 07-03-2013, 06:42 PM
 
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Wow. Helpful answers. Thanks.

This is a newly built house that has never been assessed but the assessment is due soon. If our purchase price is higher than their assessment (which will have hardly had time for the ink to dry), will the assessment be raised immediately or will they wait until next year?
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Old 07-03-2013, 06:46 PM
 
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Quote:
Originally Posted by fiege1224 View Post
Be very careful buying in Florida without homestead cap. The Tax man in Florida can be very bad to out of state owners. Then add insurance another bad problem. I had a home on the water in 2003 taxes went from 1200 to almost 7,000 in 2 years.

I sold it and made a lot of money. Came back in 2010 when I could homestead and bought another waterfront home at the bottom of the tax rolls and capped it.

This time they won't run me out for the taxes at least. Insurance may be another matter.

You have both scared me and inspired me. Kudos to you for beating the system.
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Old 07-04-2013, 10:38 AM
 
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Quote:
Originally Posted by Cardiff by the Sea View Post
Wow. Helpful answers. Thanks.

This is a newly built house that has never been assessed but the assessment is due soon. If our purchase price is higher than their assessment (which will have hardly had time for the ink to dry), will the assessment be raised immediately or will they wait until next year?
Assessment is determined by the Tax Assessor's valuation of that property as of Jan 1st of a given year.
The value that they determine usually comes out in July or Aug of same year. If the home was not yet completed as of Jan 1, then the tax will be based on the lot only for the entire year. Then next year on Jan 1 the valuation of the home/lot will be determined based on comps as of Jan 1.

For example, if the new home is completed on Aug 15, 2013. the 2013 taxes will be assessed based on the value of the lot as it was worth on Jan 1, 2013. then on Jan 1, 2014 the county will come up with their new assessments based on comps sold up until Jan 1, 2014. Since it was a completed home on Jan 1, 2014, the lot and house will be assessed and the taxes will go up. You won't know the new assessed value until they are released approx July/Aug of 2014.

They assess based on comparable properties SOLD (comps)...not based on what you paid. If you got a great deal your assessed value might be higher since they are based on comparable properties. Assessed values are usually lower than what you pay, but not always. If you pay 400k, your assessed value might be 350k.
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Old 07-04-2013, 05:08 PM
 
2,076 posts, read 3,085,193 times
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Quote:
Originally Posted by sware2cod View Post
Assessment is determined by the Tax Assessor's valuation of that property as of Jan 1st of a given year.
The value that they determine usually comes out in July or Aug of same year. If the home was not yet completed as of Jan 1, then the tax will be based on the lot only for the entire year. Then next year on Jan 1 the valuation of the home/lot will be determined based on comps as of Jan 1.

For example, if the new home is completed on Aug 15, 2013. the 2013 taxes will be assessed based on the value of the lot as it was worth on Jan 1, 2013. then on Jan 1, 2014 the county will come up with their new assessments based on comps sold up until Jan 1, 2014. Since it was a completed home on Jan 1, 2014, the lot and house will be assessed and the taxes will go up. You won't know the new assessed value until they are released approx July/Aug of 2014.

They assess based on comparable properties SOLD (comps)...not based on what you paid. If you got a great deal your assessed value might be higher since they are based on comparable properties. Assessed values are usually lower than what you pay, but not always. If you pay 400k, your assessed value might be 350k.
Thanks. I think in this situation, it will be the assessment comes out in July or August. It is really helpful to know the process.
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Old 07-04-2013, 05:18 PM
 
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We are flexible in when we move in. If instead of moving in after 2 years, what if we moved in December of 2014 and file the paperwork for the homestead exemption then? Would that limit the increase in assessment that is determined January 1, 2015?
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