Out of state home buyers are continuing to ask, how much are the taxes on a particular property. Florida is different than most states. Properties are assessed on the last sale price. So if a home is being sold as a bank owned property, the sale price is greatly reduced from the last sale pricing most cases. If a home sold in the past for $450,000, the taxes will be over $5,000 a year. If that home currently sells for $250,000, the taxes will be reduced almost 50% the next year.
We also have homestead exception. This allows a resident to deduct $50,000 from the assessed tax value. In Florida, the tax assessment for Florida Residents can only increase to a maximum of 3% a year from year to year. Non residents are capped at 5%.
These are the current laws. They may change some what because of the amount of foreclosure sales effecting the overall tax roll income for the state. But they have not done anything about it yet.
Use the current taxes as a guide, not the rule when concidering a purchase.
Mark Horan
"The Resident Chef"
Broker
Resident Team Realty, LLC
Phone: 407-301-0312 Fax: 407-426-1101
Email: ResidentTeamRealty@yahoo.com
Website: www.ResidentTeam.com
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Mark
It is important to mention the 3% Cap is for Homesteaded Property- owner must declare Florida is State of legal domicile and full time residence- this does not apply to winter residences or second homes.
I get this question a lot as well from my buyers who are concerned when the taxes will be readjusted.
November 1st is when the tax bills are issued. You have until March 30 to file for Homestead Exemption.