Florida Property-Tax Amendment - Questions and Answers

Homeowners' guide to propety-tax amendment:

Of the four parts in a property-tax amendment up for a Jan. 29 vote, portability has the potential to affect homeowners the most. Key questions about it:
• Q: What is portability?
• A: The ability to transfer to a new home accumulated property-tax savings tied to the Save Our Homes law. The taxable value of a homestead can rise no more than 3 percent a year -- even if the real market value of the home is higher. Over a period of years, the market value of the home may be higher than its taxable value. That's called the ''differential.'' Under the amendment, that amount can be transferred to a new home so you pay less tax.

• Q: How can I find out the differential for my home?
• A: On Miami-Dade property-tax statements, subtract ''taxable value'' from ''market value'' to get the differential. In Broward, subtract ''taxable value'' from ''property assessment value.'' In Monroe, subtract ''taxable value'' from ``just value.''

• Q: How much savings can I carry to another home?
• A: If you buy a more expensive home, you transfer all of your benefit up to $500,000. For example, if you sell a home with market value of $600,000 and taxable value of $300,000, your differential is $300,000. If you then buy a new home with market value of $700,000, your taxable value would drop by the differential, $300,000. So your taxable value would be $400,000 your first year in the new home.
If you buy a lower-priced home, you transfer a percentage that matches your current benefit, up to $500,000. So if market value of your current home is $600,000 and your taxable value is $300,000, your differential is $300,000, or 50 percent. If you sell it and buy a new home for $400,000, you may transfer $200,000 -- 50 percent of the new home's market value. Your taxable value would be $200,000 the first year.

• Q: How much will my taxes increase on my new home in the future?
• A: You will still be covered by Save Our Homes, which means taxable value will grow no more than 3 percent each year.

• Q: What if I've never owned a home in Florida?
• A: You're at a disadvantage. But once you own a home, you will accumulate Save Our Homes benefits and can transfer them to another Florida home.

• Q: Do I get the benefits of portability only if I sell after the amendment passes?
• A: No. If the proposal passes on Jan. 29, you can get the benefits if you sold your home anytime in 2007, as long as you get homestead exemption on your new home by Jan. 1, 2009.

• Q: If I sell my home, do I have to buy another main home right away to transfer my tax savings?
• A: No. You will have two years to transfer savings.
Source: Miami Herald, MARY ELLEN KLAS

HELPFUL LINKS:
Broward County Tax Appraisal Site
http://www.bcpa.net/Homepage.asp
Miami Dade County Tax Appraisal Site
http://www.miamidade.gov/pa/
Interactive Tax Calculator
http://www.miamifly.net/interactive/proptax/
Arnowitz Properties main site
http://www.arnowitzproperties.com/

Hilights of property-tax proposal
HOMESTEAD
• All homeowners would receive an additional homestead exemption of $25,000 for the value of their home above $50,000.
• The new exemption doesn't apply to schools taxes, so the exemption would average about $15,000 statewide.
• First-year impact: $892 million.

PORTABILITY
• Owners of homestead property would be able to transfer their Save Our Homes benefit (up to $500,000) to a new homestead within two years of moving.
• Homeowners who moved in 2007 may transfer their benefit if they apply for a new homestead Jan. 1, 2008, or Jan. 1, 2009.
• This applies to all taxes, including school taxes.
• First year impact: $302 million.
Source: Florida Senate

Bradley E. Arnowitz, P.A. & Associates
http://www.arnowtizproperties.com/
ClientCare@ArnowitzProperties.com
24/7 (305) 776.6113

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