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Fort Lauderdale Real Estate| Ft. Lauderdale Luxury Real Estate| Ft. Lauderdale Waterfront Condos| Las Olas
Broward County Property Tax Reform
Are you interested in Broward County Property Tax Reform, Florida Tax Reform, and Broward County Taxes? On January 29, 2008, Florida voters overwhelmingly approved Amendment 1 to grant added tax relief to property owners. The new Florida Constitutional Amendment doubles the homestead exemption to $50,000; gives homesteaded owners the "portability" right to move Save Our Homes benefits to a new homesteaded property; grants businesses and mobile home residents a $25,000 break on tangible personal property taxes; and caps annual increases for non-homesteaded properties to no more than 10%. Most importantly, the proposal fully preserved our existing 3% Save Our Homes cap. Homesteaded owners do NOT need to apply for the additional savings, as the $50,000 homestead exemption amount will be automatically applied starting this year. The Florida Department of Revenue (DOR) has drafted some initial forms and guidelines -- and is now working on drafting the administrative rules and additional forms to implement the rest of these new benefits. Click here to visit the DOR website tracking these developments. You can also read the enabling legislation for the amendment by clicking here if you'd like to learn more. If you had homestead on one Florida property in 2007 and are now seeking to move your homestead to a new location in 2008: ** Click here to download the new portability application ** Please return the completed portability form to the Broward County Property Appraiser's Office, 115 South Andrews Avenue, Room 111, Fort Lauderdale, Florida 33301); or by email (attach in PDF format); or by fax (954.357.8474). If you are a Broward business owner, filing your 2008 tangible personal property tax return with our office will also serve as your application for the new $25,000 exemption on tangible personal property. The Amendment overview: Increases the Homestead Exemption from $25,000 to $50,000. This additional exemption of $25,000 will only apply if the assessed value of the property exceeds $50,000. There are very few properties in South Florida assessed for less than $50,000; therefore, most properties in our area would receive the full additional exemption. However, this additional $25,000 exemption would not apply to the school district levies. Since the school district taxes represent approximately 40% of South Florida tax bills, the additional $25,000 exemption would be equivalent to about $15,000, making the new total annual homestead exemption equivalent to about $40,000. Assuming an average South Florida millage rate of 2 mils, a $40,000 exemption will save the homestead taxpayer about $800 per year, or about $300 more than the current homestead exemption saves.
Gives Homesteaded Owners the "portability" right to move Save Our Homes benefits to a new Homesteaded property (currently, you're unable to do that).
“Portability” allowing homestead property owners to transfer up to $500,000 of “assessment difference” to a new home. The amount of the “assessment difference” is the difference between the “just market value” and the “tax assessed value” of the owner’s current home. Homestead property owners purchasing a new home of equal, or greater, value will be allowed to transfer 100% of their “assessment difference”. The amount of “assessment difference” which can be transferred when the new home’s “just market value” is less than the old home’s “just market value”, will be reduced by the same percentage difference existing between the values of the two homes. For example, if the assessment difference which has accumulated in the old home is $500,000 and the old home’s value is $1,000,000 and the new home’s value is $600,000, the owner would be limited to using only 60% of his or her “assessment difference”, or $300,000, to reduce the tax assessed value of the new home. If the Amendment passes, owners who qualified for homestead exemption on January 1, 2008 will be allowed to transfer their “assessment difference” from a property where they held a homestead exemption in 2007. If an owner qualifies for homestead exemption for a new home by January 1st of any particular after 2008, they may transfer their “assessment difference” from a homestead property that they owned in either of the two immediately preceding years. All other features of the Save Our Homes Amendment would remain intact, including the limit of increase upon the annual tax assessed value to a percentage no greater than the previous year’s CPI or 3%, whichever is less.
Grants Businesses and Mobile Home Residents a $25,000 break on tangible personal property taxes. Allowance of a $25,000 annual exemption for business tangible personal property. This exemption would also include school district levies. Tax savings would be equal to about $500 per year.
Caps annual increases for non-Homesteaded properties to no more than 10% (this would help Landlords and others who own properties that aren't their Primary Residences). Currently, there are no Tax Increase Caps in existence for non-Homesteaded Properties. Limit the increase of non-homestead property tax assessed values to 10% per year for levies of all taxing authorities other than school districts. The assessment increase limitation would apply until there is an ownership change or until there is an improvement to the property that increases its just market value by at least 25%.
The proposal also fully preserves the existing 3% Save Our Homes cap.
Contact me if you’re interested in more details about Broward County Taxes and how they relate to you if you would like to Buy a Ft. Lauderdale Home or Sell a Ft. Lauderdale Home. I am a Broward County Homeowner and I understand the proposed Amendment, so please call or e-mail me if you have any questions about it! I can be reached on my Cell at 954-708-9309 or by e-mail at vickie@vickierealestate.com
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