South Florida Real Estate Comments

Real Estate Property Taxes

One of the issues that is fueling our severe lack of inventory of available homes is property taxes. One of the benefits of living in Floridaare homestead tax benefits. When your home is homesteaded (claimed as your primary residence) you enjoy the benefit of the assessed value only rising a maximum of 3% per year - no matter how much the market increases. This means your property taxes will only increase slightly each year. This is a major cost savings to home owners - especially in a rising market.
The problem comes in when a home owner wishes to move to another home in Florida. If the home owner has owned their current home for several years, their current taxes are quite low.
When a buyer purchases a home, the assessed value is reevaluated and assessed. This mean the new purchased is reassessed at the current market value and that value is taxed.
For example: Home owner has been living in their house for 10 years. They originally purchased for $100,000. They taxes today should be approximately $1700. That home is now worth $350,000.
This same owner sells his home and buys a nice condo for $350,000. Logically his monthly over head should be the same. But because his new purchase will be reassessed befor his new homestead benefits apply - his taxes will be appoximately $7500.
The good news being that from there, they will rise only a small amount each year as long as the new home is homesteaded.
This drastic jump in annual tax payment is what keeps many of home owners from selling and buying a larger, smaller or in different communities.
Actually city/county tax miilage rates range from 1.9% to 2.9%. As a homeowner, while living in the proerty, the homestead benfits are a great savings. But if you are looking to down size, upsize or relocate to another community - the tax implications can be unaffordable.
What can you do?? Contact your state legislature. Ask them to enact a resolution that will allow you to affordably relocate with in the state of Florida.

posted by Christine Pardo, PA @ 7:35 AM