“Jon, in your blog you mentioned homestead exemption. What is it and how does it work in Florida?”

This was the e-mail I received from a customer from New York. That’s a good question. First and foremost, homestead exemption in Florida pertains only to those, who claim their property as primary residence. Usually meaning that they stay in their residence for 6 months and one day a year or more.

In a nutshell, homestead exemption in Florida does three things:

First - it protects your home.  Your home cannot be taken from you, unless you pledged it as collateral (mortgage). It provides the exemption from forced sale before and at death; restricts devise and alienation and in that sense makes Florida one of the most protective States in the nation

Second - it reduces your tax obligation. Until referendum on January 29, 2008 homestead exemption was $25,000 of the assessed value, established by the country property appraiser. Now it is $50,000, however, the second $25,000 is being taxed by a school district, so the amount of reduction of total assessed value could be a bit less than $50,000.

And third - it protects your property from tax increases, beyond 3% a year. This cap went into effect in 1995 as a result of the “Save Our Homes” Constitutional Amendment. The tax can’t go higher than 3% a year or the rate of inflation, whichever is less.

This provision was of huge benefit to homeowners in the boom years of real estate as tax increases were in the double digits. In effect this created an unfair tax system, where similar properties are taxed differently.

This post does not cover all aspects of Homestead in Florida, but at least it gives you a general idea.

 
This post has been included in Florida Real Estate News Volusia County, FL Real Estate News Daytona Beach, FL Real Estate News
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7 Comments on Homestead Exemption in Florida

JAN
31
2011
1,090,396 Points 201 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

Hi John, I didn't even fully read the post, I was looking to see if you had hit the big 700,000 points . 360 points to go so I expect tomorrow ( today )I just noticed that it is 12 midnight ypou will be the holder of that new distinction.

 

 

Now at the door of             700,000

How wonderful for you Jon, You are fast approaching the MM mark and I am sure will already be there to welcome me, :-)

Now I will go back and read your post on Homestead. Somewhat familiar with it when I lived there.
3:02am • #1
811,790 Points 163 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Jon, I never knew these things about Florida. I do learn so many things about different places here on ActiveRain.

Mostly I learn there is no snow in Florida....

PS, I checked, you are soooo close.... congratulations! A bit premature, but just in case I can't get back to see the actual change over...
6:04am • #2
207,539 Points 3 Featured Posts Outside Blog Hit Router Called Shot Master

Jon - [Here's four more points] - An an interesting note for me  - the degree of difference in Homestead between Florida and California is huge ... and I imagine it is in other venues as well .... thanks for the reader's digest version!
8:27am • #3
1,210,518 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Not there yet, William
11:13am • #4
1,389,865 Points 27 Featured Posts Hit Router Called Shot Master

Informative post Jon.  One of the more misunderstood aspects of Florida Real Estate.  Also, you might want to write about why some folks property values have gone down, yet their tax bills go up (as they catch up with fair market value).
11:56am • #5
535,410 Points 38 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Jon,

You can't remind people enough about homesteading!

It's a reason OJ moved to FL to stiff his children.

Rush uses it to protect himself from NY.

Bill

 
1:12pm • #6
FEB
01
2011
510,902 Points 44 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

Papa Jon - you are there now. Congratulations on your accomplishment very few can relate to.  Homestead Exemption a must for a permanent resident of Florida - Deadline is March 1st!
12:06pm • #7


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