Homestead Exemption: Hurry to Save on Property Taxes!
No one wants to pay more taxes… so hurry and file your Homestead Exemption today!The Homestead Exemption reduces the amount of property taxes that you pay on your primary residence.Applications are due to the Miami Dade Property Appraiser’s Office by March 1, 2011.The Homestead Exemption is an important benefit for Florida residents because it saves property owners money by reducing property taxes in many cases by up to $50,000 off the assessed value!I visited the Property Appraiser’s office today and the place is swamped with people filing for the exemption…you may also file on line or mail your application. Properties that are homesteaded receive even more benefits!First, the property can’t be touched by creditors (this means it can’t be taken to satisfy debts or judgments except for property taxes, mortgages and contractor liens). Second, the “Save Our Homes” cap on increase in value.The Save Our Homes Amendment to the Florida Constitution caps the increase in assessed value of a homesteaded property to 3% or the increase in the consumer price index (CPI), whichever is less.The cap protects property owners from the potential of sky-rocketing property tax bills – if the property owner had to pay taxes based on the wild assessed values of the hot market – 2004-2006- many long time Florida residents would not have been able to keep up. Third, as of 2008, the cap is “portable” this means that when a homeowner sells and moves to another home the homeowner may transfer up to $500,000 of the Save OurBenefit to a more expensive property and a percentage to a less expensive propertyHere are some nitty gritty details: Homeowners are entitled to a $25,000 homestead exemption for the assessed value of the home for city, county and school board taxes and an additional $25,000 exemption from city and county (but not school board taxes).Homesteaded properties with an assessed value of $75,000 or more are entitled to the entire $50,000 homestead exemption. This benefit is exclusively for Florida residents who live in their homes! Snow-birds who buy vacation condos for short term stays may enjoy our Florida sunshine but are not eligible for the Homestead Exemption. Rental property and commercial property are also not eligible for the Homestead Exemption. Here are some nitty gritty details: Homeowners are entitled to a $25,000 homestead exemption for the assessed value of the home for city, county and school board taxes and an additional $25,000 exemption from city and county (but not school board taxes).Homesteaded properties with an assessed value of $75,000 or more are entitled to the entire $50,000 homestead exemption.To obtain the Homestead Exemption property owners must provide proof of ownership of the property as of January 1, 2010 and proof of Florida residency. Contact me to learn more about the Homestead Exemptions and other exemptions to reduce your property tax assessment