To Homestead Or Not To Homestead?
Many Floridians are unaware of a state rule passed in 1995, which requires assessed property values to grow by 3 percent or by the Consumer Price Index, whichever is less, as long as the property’s market value does not dip below the assessed value. Therefore, even homeowners whose market value dipped this past year may see lower savings or even a slight increase in their taxes.
I think that this law needs to be immediately eliminated or amended. Why? This law works against many that are homesteaded versus those homeowners that are not. According to Kurt Wenner, director of tax research for Florida TaxWatch, “this could be the first year where people under Save Our Homes taxes go up, and people with non-homestead properties go down.”
Last year, voters overwhelmingly approved Amendment 1, which effectively doubled the homestead exemption for primary homeowners to $50,000 and made the Save Our Homes tax protection more portable. This amendment also placed a 10 percent cap on non-homesteaded properties.
So Florida snowbirds, second or investment property owners, who have been left out in the cold for so long on property taxes, may find that their property tax bills falling this year, together with real estate market values.
If you would like to consult with us on your tax situation or value of your property, please contact Ross at info@miamiangelproperties.com or call 305.673.5300.
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