Here are some things you should know about the new tax laws that were passes as part of Amendment 1 on Tuesday, January 29, 2008.
If you already have homestead property:
1) You will NOT loose your "save our home" 3% cap!
2) You will GAIN an addition additional homestead exemption of $25,000 if your property is assessed over $75,000 and whatever amount is over $50,000 if your property is assessed between $50,000 - $75,000. (You do NOT need to apply for this. It will be automatically added and will be reflected on your 2008 tax statement.)
3) Your savings is NOW portable. You can move your discount from 1 property to another. (You do need to apply for this and can do so through your county's property appraiser's office.) I will post more info on this later if there is interest, or please feel free to contact me with any questions.
4) If you purchased a home in 2007, you can use that portability NOW from a property you had homesteaded before that! (You do need to apply for this and can do so through your county's property appraiser's office.)
5) You do NOT need to sell your homesteaded property in order to move the the savings with the portability. You simply declare another property as your homestead and move your exemption and savings there. Therefore, you can buy first and sell later.
6) You have 2 YEARS to move your exemption and savings after you sell your homesteaded property if you decide to sell first.
7) When you move your homestead and your savings, the 3% "save our homes" cap goes onto the new property at that reduced rate!
If you do not already have homesteaded property:
1) You can apply for a homestead exemption whenever you want. (You do need to apply for this and can do so through your county's property appraiser's office.)
2) You will get the $25,000 original exemption plus the new exemption of $25,000 if your property is assessed over $75,000 and whatever amount is over $50,000 if your property is assessed between $50,000 - $75,000.
3) You will get the 3% "save our homes" cap on the new reduced rate.
4) If you choose to never file for homestead exemption, you will still get the 10% cap on assessment increases which will limit the amount your taxes can increase in the future.
Everybody should know:
1) Amendment 1 is being challenged in court. The "Save our Homes" legislation was challenged also in the early 90's when it passed originally. Since the original amendment held up in court Govenor Christ believes the new one will too.
2) If all whom have been trapped in their homes by their tax savings buy now and sell later, the market will turn quite quickly. We are seeing signs of this happening as people want to buy at the low prices being offered now and take advantage of the extremely low interest rates and then sell when the market recovers. Since you move your homestead exemption and savings as soon as you buy, many will rent out their prior homesteads if necessary until prices are where they want them to be. It will be the surge of buying that will bring prices back up again.
3) Amendment 1 will stimulate the Florida economy as the money not paid in property taxes will be spent locally at restaurants, home improvement stores, etc. Money being spend always stimulates an economy. That's what the President's rebate is all about.
4) Amendment 1 will stimulate the Florida real estate market. People who have been trapped in their homes by their tax savings can now buy a new home and take the savings. More first-time buyers can now afford to buy as expenses of ownership will be lower with lower taxes. (In the lower price ranges, the percentage of savings from the extra homestead exemption is huge.) Non-homesteaded property owners (snowbirds & investors) are protected too by the 10% cap which might bring the nervous ones back to the market place.
5) Those who snooze will loose. This will turn things around for us and will send prices back up again.
Many people are uninformed about this Amendment. Please help spread the word! Tell co-worker, peers, clients, friends, family, neighbors... We all need to be informed, whether in the biz, consumer, or general public. Thank you!
Jenniffer Lee
RE/MAX Select Boca, Inc.
21301 Powerline Rd #106, Boca Raton, FL 33433
Office: (561) 807-5478 • Fax: (561) 368-0104
Website: www.best-real-estate-choice.com • Email: ReMaxJenLee@aol.com
Your source for Florida real estate
Jenniffer Lee
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Great information summarized very clearly. Thanks! You're right that many people still don't understand this.