2006-04-04T09:14:00.000-07:00

FLORIDA PROPERTY TAX--THE "NEGLECTED" TAX

It's April--"tax time"--right? Don't we all think of federal income tax as soon as someone mentions the word "taxes"? Yes, we do. How come no one thinks of real estate taxes, even if the tax bill in November is more than the tax bill on April 15th? Is it because the bank or other mortgagee quietly takes a monthly payment and puts it in escrow and makes the tax payment on our behalf in November of each year?

Probably. Be that as it may, let's take a moment to talk about Florida property taxes and what can be done to reduce its impact on our wallet. In fact, let's not just talk about it in April; let's talk about it at least once a month, starting today.

What's the most popular measure available for reducing property taxes on residential property? If you said homestead exemption, go to the head of the class.

Homestead exemption is popular for two great reasons. First, it exempts from property taxes the first $25,000 in assessed valuation. Depending on the millage or tx rate, in many municipalities, this may amount to annual tax savings of $600 or more. Second, and more important, is that the homestead exemption "caps" increases in value at 3% or the cost of livging increase--whichever is less--for all years after the exemption is first established.

For many property owners, the homestead exemption means that more than half of the value of the property is exempt!

Now that we've convinced you of the value of having the exemption, let us tell you how to get it. All that is required is the filing of a simple application form with your County Property Appraiser. Click here to contact your County Property Appraiser. http://sun6.dms.state.fl.us/dor/property/appraisers.html

Some counties, including Broward County, allow you to apply online for your homestead exemption. Click here for Broward. http://www.bcpa.net/index.cfm?page=homestead

If you're very well informed, you may know that March 1 was the filing deadline for homestead exemption. What you may NOT know is that you can still file until some time in August or September by filing a Value Adjustment Board petition (and paying a $15.00 filing fee) at the same time you file you late homestead exmption application. Belive me, it's well worth the trouble! More about this later.

Well, that's the property tax lesson for today. Stay tuned for more pointers about how to maximize the property tax benefits available to you.

And when someone mentions "taxes," don't just think federal income tax, think "property tax," too. There's lots you can do about, not just on residential property, but to an even greater extent on commercial rel estate.

Florida Property Tax Appeals