Good New's for Florida's Home Owners - New Homestead Exemption - SOS Portability
This past election a tax exception called "Amendment 1", was passed. It is the largest property tax cut in Florida's history. The new law "Amendment 1", has 2 parts. The first requires local governments to roll-back taxes this year and then to "grow at a responsible rate" in the future. Whatever that means. The second was voted in by Floridians in January 29, 2008. It is retroactive from January 1, 2008.
The new provisions that were voted in are; doubling the homestead exemption (from $25,000 to $50,000) and improving the existing "Save Our Homes" benefit by make it portable. SOS Portability.
The doubled homestead from $25,000 to $50k will apply to homes with a just value of $75,000 or over. The few homes valued under $75k will get a smaller increase to homestead exemption.
Portability means that if a home owner decides to sell and purchase a new home, he will be able to take his Save Our Homes exemption he has enjoyed in the existing home and apply it to the new one. (Many locals have would like to downsize or upgrade, but without portability the taxes in the new home make the payments way to high.)
Let's say you bought a Cape Coral house in 1991 for $100,000 and in today's market it is worth $300,000 with and assessed value of $240,000; in this case you could transfer the whole $240,000 difference to the purchase of a another home. Let's say you bought a $350,000 new home in Fort Myers, annual taxes would be about $5,500 without portability. But if we include the tax savings (double homestead exemption and Save Our Homes portability) that Amendment 1 will provide then annual taxes will be little more than half or about $3,100.
Hopefully this new tax exception will cause a stir in the real estate market.
Find out more: http://www.barbaraklare.com/
Gulf Coast Realty
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