Got Homestead Exemption?

Why not????  I was recently shocked to hear that one of my clients didn’t apply for homestead exemption when they purchased the home several years ago as their primary residence.  This oversight cost them over $10,000 a year in property taxes.  I’m sure more of you are out there so let’s try and get everyone in check. 

There are two main reasons that you should have homestead on your primary residence.  Number one is that your assessed value of the home which is the main ingredient in determining your tax bill can only be increased by a maximum of three percent annually. This limits your exposure to a higher than normal tax bill with the rise of property values.  This is very prudent in today’s market where you saw home values at rock bottom and now over the last five or six years have rebounded.  In some instances, the assessed value has doubled due to the market fluctuations which could generate an inflated property tax bill if there is no homestead on your property.

The number two reason to apply for homestead exemption would be the $25,000 discount off the assessed value that the State of Florida offers to all primary resident homeowners.  There is a complicated formula that figures the exact amount discounted but it ultimately means a $650 to $1,150 savings per year on your property taxes.

In order to get homestead, you need to meet the following criteria and provide the following information:

1. A legal Florida resident
2. A value of property worth more than $75,000
3. As of January 1st, you have made the property your permanent home or the permanent home of a person who is legally or naturally dependent on you.
4. Provide the Recorded Deed as Proof of Ownership
5. Proof of Permanent Residence which includes:
   1. Driver’s license
   2. Voter’s registration
6. If you or your spouse claim homestead in any other area then you will not be entitled to the exemption.

Although homestead exemption is the most common exemption people talk about, there are several other exemptions that Broward County offers their residences.  Disability, Veteran’s, Deployed Military, and more offer additional savings.  There’s one exemption called the “Granny’s Flat Exemption” that could become a real advantage to many of us.  If you or someone you know has made major renovations to their existing home or built an addition for their parents or grandparents to live with them, an exemption may be option.  There are several rules to this exemption however if you qualify, you are entitled up to twenty percent of your homestead value in savings.

Don’t forget about Portability of your property taxes.  A lot of my empty nester clients are very concerned about what this really means when they sell their home in the suburbs and upgrade to a place on the East Side.  Contact me further for details so I can clear up any of your uncertainties.

A special thanks to all my clients and sphere of relationships who have been powerful advocates of mine over the years.  It’s truly an honor to have the opportunity to be a part of many transactions in the South Florida Market. 

http://www.bcpa.net/homestead.asp