Young family looking to relocate to Venice

[Sunshine Rules]

Originally Posted by karenkellywriter

Scottish Lassie - now I am more confused. Are you saying that when I listing says the homesteaded taxes are $1800 or $2400 a year it's really going to be $5000 a year? Huh?

Property taxes can be confusing for buyers moving here from out of state. In FL we have the homestead exemption that reduces the assessed value of a qualifying, owner occupied residential property by up to $25,000 -- and if the property has an assessed value of more than $50,000 there is now an additional $25,000 exemption on all non-school ad valorem taxes. So if you have a home worth $150,000 the property taxes will be based on $100,000 of value if you qualified for and obtained a homestead exemption before the start of the tax year.

In FL we also have the Save Our Homes cap. If you have qualified for the homestead exemption, the value of your home for tax purposes is capped at 3% per year, regardless of the appreciation of home values in the neighborhood.

Prospective buyers need to be aware that while you can look at homes in a specific price range to get an idea of what to expect for property taxes, a buyer should not rely on the seller's current property taxes as staying the same in the year following your purchase. A sale triggers a reassessment of the property -- if the new assessed value is higher, the taxes will go up. Property taxes will typically go up the most if the property has had a Homestead Exemption for a number of years under the current homeowner.

For example: A home for sale has property taxes of $2100, based on an assessed value of $150,000. But the market value for the home is $300,000. Because the sellers have lived in the property for a number of years and have the property homesteaded for tax purposes, their annual assessment cannot go up more than 3% per year, even if home values around them are going up say 10% a year. So you buy the house for $300,000 and the property appraiser's office now sets a NEW assessed value as of January 1st of $280,000. Your property taxes will go up substantially to reflect the new assessed value.

This is why the FAR and FAR/BAR contract forms used by local real estate agents have a paragraph in the contract in caps/bold called the Property Tax Disclosure Summary, explaining the buyer should not rely on the seller's current taxes as the amount buyer may be obligated to pay in future years.

If you plan to owner occupy the home as your main residence you will have to file for your own Homestead Exemption for that property after the purchase as the old one expires at the end of the year after the sale.