The Homestead Exemption Deadline is Approaching!

Mark your calendars as March 1, 2022 is the deadline to file for homestead exemption. 5 things to keep in mind.

Homesteading is for Florida residents. There is no minimum requirement to how long you must reside here to get homestead exemption. It may only be one month and that is okay. To qualify for homestead, you only have to declare this home your primary residence and have all your documents registered here. (i.e. Florida driver’s license, vehicle registrations etc.).\ It encourages people to do so by basically giving a $0 taxes on the first $50,000. So if the assessed value is $500,000, you only pay taxes on $450,000
Homesteading also limits your tax increases to 3% a year. This year when there has been double digit increases in home values, your taxes only can go up 3%. Quite the good deal. It is very important to say that your assessed value is limited to the 3% increase and NOT taxes. Taxes could increase for various reasons such as millage rates may be increased by local taxing authorities or additional non-ad valorem assessments could get applied to specific properties. Assessed values are limited but if either of these things occur, their taxes very well could go up higher than 3%. Also, 3% is the maximum allowed or the consumer price index, whichever is less each year. For example, in 2021, the Save Our Homes cap was only 1.4%, whereas this year it is 3%. Lastly, the cap on assessed values does not apply to new construction. For example, if someone adds a pool, the value of the pool is added after the cap is applied. The pool will not be subject to cap until the following year.
There are three ways to file and you can do it electronically as well. Our closing costs, homestead, portability, and tax page will give you instructions and explanations.
When you are looking for a home, don’t pay attention to the MLS sheets of what the current taxes are. They are going to go up based on the new price. A home that has been homesteaded a long time
Portability lets a permanent resident who is homesteaded keep a portion of their homestead when they move. SOH or Save Our Homes was established in the mid 1990’s and the portability amendment in 2008 came from the rise of prices then. Its purpose was to not lose all the homestead and let people move around so they didn’t feel trapped in their residence. There is a limit of $500,000. And a super complicated formula. Right from the Tax rolls, it reads…..

How does portability work?

If your new residence has a higher market value than your former residence, the portability amount is determined by subtracting the assessed value of the former home from its market value. For example, if the market value of your previous home is $250,000, but the assessed value is $150,000 because of the SOH benefit, then the assessed value of your new home will be reduced by $100,000, and the 3 percent SOH cap will continue on that portion of your new home’s assessed value. If the new residence has a lower market value, you can transfer a percentage of the difference from your previous property to your new home. To qualify for portability, you must establish your new residence on or before January 1 of the third year after leaving or selling your prior residence.

In layperson terms, just go to your home in PAPA and plug in what you think your selling price will be and the new price. It will calculate the formula for you and spit out what your portability will be. Still confused, call me at 561-346-8383 and I’ll walk you through it!

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Today, the Palm Beach Post featured Jupiter’s newest luxury community, Symphony. Symphony offers stunning new home designs showcasing luxury outdoor living Ranging from 4-6 bedrooms, each home expresses modern or coastal contemporary style and sophistication paired with 21^st century amenities, all exceptionally crafted and thoughtfully designed. We will be on-site from 12-3 to physically walk the lots, show the floorplans and features. 4 of the 20 homesites are already under contract so come on over and look before they are all gone.

Posted in Jeff's Journal, Real Estate Tips, Resources on February 19, 2022 at 6:39 am.

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The Homestead Exemption Deadline is Approaching!