Time to File for Homestead Exemption is....NOW
DEAR DOC: I purchased a home this year and was told to file for a "Homestead Tax Exemption." What is it?
ANSWER: The Homestead Tax Exemption is a right established by the Florida Constitution. It permits exemption (reduction) of $25,000 of the assessed value of a homestead.
HOMESTEAD STATUS for a specific year is granted if the applicant:
- OWNS THE PROPERTY prior to the tax year for which the exemption is requested.
- RESIDES ON THE PROPERTY for which the exemption is requested.
- MAKES APPLICATION prior to March 1 of the year for which the exemption is requested.
To apply, take your original recorded deed to the appropriate Tax Assessor's office. Call for specific documentation required to prove residence (current driver's license showing the property address, declaration of domicile, etc.
Remember that real property taxes are paid "in arrears" - after you have had the benefit of the schools, roads, water and fire districts, etc. that were supported by tax dollars. Your application and approval for exemption will reduce your next year's tax bite on your tax bill, which is issued in November. For example, if you purchased your home by December 31, 2008 and promptly applied for the exemption, the tax bill you receive in November 2009 for taxes for 2009 will reflect the exemption. If you delay until after March, 2009 you will not receive the exemption on your 2009 tax bill, but will receive the exemption on your November 2010 bill for year 2010 taxes. |
Once your exemption status is established, your tax benefits will be continuous if you continue to qualify for and receive future exemptions. Subsequent annual applications for the exemption will be mailed to you in January with instructions on how to renew your exemption status. In most cases, renewal will be automatic with no action required to continue the exemption.
The exemption can benefit you in two ways. First, your annual tax bill will be less. For example, a home with a $25,000 assessed value and a $25,000 homestead exemption would have no real property tax on that home! If the assessed value on your homestead is, for example, $100,000, your taxable value, after the exemption, would be $75,000. To precisely compute your tax savings, multiply the tax millage rate, which can be expressed as so many dollars per thousand dollars of taxable value, times the $25,000 exemption. If your tax rate is $20/$1000, for example, you would save $500 annually. Secondly, the annual tax reduction would reduce your monthly tax escrow payments and therefore reduce your total monthly mortgage payment.
My advice: File now!
| Jerry Stoffer is a broker-salesman and designated REALTOR® with advanced degrees in both business and behavioral sciences. An attor-ney or accounting professional should be consulted for specific legal or accounting advice |
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WHERE TO FILE:
Seminole County
407-665-7508 - all year or by mail
(8:30am - 5:00pm M-F)
County Services Building
1101 East First Street
Sanford, FL 32771-1460
www.scpafl.org
Orange County (Orlando)
407-836-5045 - by mail
(8:00am - 5:00pm M-F)
200 S Orange Avenue, 17th Floor
(SunTrust Tower)
www.ocpafl.org
January & February only
(10am - 6pm M-F):
Florida Mall (Orlando)
8001 S Orange Blossom Trail
(Adam's Mark Hotel concourse)
West Oaks Mall (Ocoee)
9401 W Colonial Drive
(JC Penney concourse)
Orlando Fashion Square (Orlando)
3201 East Colonial Drive
(JC Penney concourse)
Osceola County (Kissimmee)
407-343-3700 - all year
8:00am - 5:00pm M-F)
350 N Beaumont Ave
Second Location (St. Cloud)
407-892-1955 - all year
(8:00am - 5:00pm M-F)
1322 10th Street
www.property-appraiser.org
WHEN TO FILE:
By February 28/29 of the year for which the homestead exemption is requested. You can now file at any time once you have received the recorded deed to your property. Annual renewals will be processed automatically once your exemption is established. |
