Archive for the 'Hillsborough Property Tax' Category

Tampa Property Taxes and Required Disclosures

June 9th, 2008 categories: Tampa Real Estate, Homes For Sale in Tampa, Hillsborough Property Tax

Did you know that buyers of residential real estate in Florida are required to have presented to them a property tax disclosure? The purpose of the disclosure is to inform prospective buyers that what the current property owner pays in taxes, may not be an accurate reflection of what will be paid by the new homeowner. And I’ve heard many homeowners complain about how the taxes went up incredibly after purchasing their home.

The important thing to remember here, as a home buyer, is to not rely on the seller’s tax amount as an indication of what you’ll be paying. Property taxes are based on an assessed value, and that new assessed value will be based on the purchase price of the property.

This is especially true when purchasing from a seller that has owned a homesteaded property for many years. That seller was most likely protected from big tax increases for those many years. And when the property changes hands that protection is wiped away, and the taxable value will be brought in line with the current market.

The disclosure is conveniently placed in all Florida Association of Realtor purchase contracts and reads:

BUYER SHOULD NOT RELY ON THE SELLER’S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER’S OFFICE FOR INFORMATION.

So how does the Tampa home buyer estimate property taxes? The easiest way is to visit the property appraiser’s website and use the tax estimator. Using the purchase price and whether or not the property will be homesteaded, one can get a fairly accurate range of the property taxes after reassessment.

Tampa Property Tax Estimator

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Posted by Lenny Gurvich | No Comments »

Property Tax Portability Deadline Looming

February 26th, 2008 categories: Tampa Real Estate, Tips for Sellers, Hillsborough Property Tax

We voted for it-now take advantage of it!

PROPERTY TAX PORTABILITY

Only three days remain: Friday is the deadline for homeowners to apply for a homestead exemption, and, for 2007 home buyers, the last day to apply for property tax portability – the right to take tax savings from a home protected by Florida’s Save Our Homes amendment and transfer it to a home purchased last year.

If you or someone you know moved from a homesteaded property in 2007, you can bring whatever tax savings you had through Save Our Homes with you to your new homesteaded property.

Here’s where to do it:

http://www.hcpafl.org/www/downloads/pdfs/dr501tn0308.pdf

Posted by Lenny Gurvich | 2 Comments »

Amendment 1 (One) Passes-Calculating Your Taxes If You Move

January 31st, 2008 categories: Tampa Real Estate, Tips for Sellers, Hillsborough Property Tax

Many homeowners are now wondering what the passing of Amendment 1 means to them, especially if they want to move. Previously, if you moved, you started paying property taxes based on the new market value of the new home. Any benefits you gained by staying put in your previous homestead were wiped out. This meant much higher taxes for those who had been in one home for a long time. The longer they owned the home, the greater the benefits that were sacrificed.

Older couples scaling down were faced with higher taxes, which didn’t seem right and kept many from making the move. A key component of Amendment One is the portability factor. Homeowners can now transfer the accumulated benefits of the 3% tax cap of Save Our Homes.

The e-mails are already beginning to roll in. From a client:

“Hi, Lenny! How have you been? Do you know any of the details about the new property tax law? My best friend is here from Scotland this week and is trying to help her parents decide whether or not to sell their Parkland Estates home that they’ve lived in for about 45 years. Their taxes are not very high, but if they downsize into a small condo, the taxes might be even lower. Are they now forced to keep their current taxes or can they take what might be the lower taxes on a condo?”

These are the folks who will certainly be released from the golden handcuffs and will now most likely consider that move into a smaller, lower maintenance place.

So here’s the best way to see how Amendment One will affect you:

Step 1: Visit the appraiser’s website, look up your property and note two figures, the “Just Market Value” and the “Assessed Value”. (Do it here)

Step 2: Go to the Tampa Tribune’s Tax calculator, and plug in the numbers where noted. There’s a calculator for how things will change with your current property and a calculator for the taxes on the new place if you move. (Do it here).

But take note. Many legal experts believe that the portability of the benefits puts new Florida home buyers at a disadvantage, a point that may be unconstitutional as it relates to interstate commerce. A legal challenge may be forthcoming.

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Posted by Lenny Gurvich | 3 Comments »

Lower Taxes It Is, But Are We Better Off?

January 30th, 2008 categories: Tampa Real Estate, Tips for Sellers, Hillsborough Property Tax

It was hard to figure that a tax cut would get voted down, and it certainly did not. Let’s face it, on a personal level, every Floridian is better off with the cut. But is the state as a whole any better off?Here’s what we get:

• An additional $25,000 exempted from the assessed value, excluding the portion that goes to schools.
• The ability to take the accumulated benefits of the 3% cap on tax increases with us when we move to a new home.

So those living in Florida the longest, in the same home, will benefit the most. The handcuffs are off, or loosened at least. Feel free to move, the screws will no longer be put to you for moving up (or down).

But can you find a buyer? Maybe you can find someone else looking to move up and drag their benefits with them. But the first time buyer in Florida, whether a newly married couple, or someone moving in from out of state, will have no such benefits to bring along. They will pay a substantially higher amount of taxes. Sure, they’ll get the $50k exemption, which will lower their taxes by about $300 more than they would have paid had VOTE NO won.

So if you’ve lived in the same home in Florida for many years, and are considering a move, congrats, you’re better off. Many in my business say this is just what we need to kick-start the market and get more people selling and buying. We’ll see.

Interested in how this affects you as a seller or buyer? Contact us.

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Posted by Lenny Gurvich | No Comments »

Is Portability of SOH Benefits Unconstitutional?

January 25th, 2008 categories: Tampa Real Estate, Hillsborough Property Tax

As January 29^th and the impending vote on Amendment 1 draws near, I find myself spending more time trying to understand the arguments of both sides. I’ve heard the angle that the portability of the benefits could be deemed unconstitutional according the clause concerning interstate commerce.

The point is that people moving to Florida would have an unfair advantage as they would be taxed at a higher rate than people who have lived in Florida for some time. Many believe that should the thing get 60% of the vote and pass, there will surely be legal challenges to the portability aspect of Amendment 1.

Save Our Homes, combined with the portability, would basically put the screws to anyone buying a home in Florida for the first time. Is that fair? Is it fair to to tax someone less because they have lived in the state for a longer period of time? Right now the screws are put to anyone who chooses to move (even if you move to a property with the same market value), as well as those buying for the first time. Is it fair to single out the first timers only?

A University of Georgia legal professor analyzed the situation and basically said that without a break for first time buyers or newly arrived homeowners, it may be tough to defend a legal challenge. But obviously, Governor Crist thinks it will hold up as he travels the state in the Vote Yes bus.

I really love the UGA professor’s quote “As Justice Thomas once said, everything that’s unfair is not unconstitutional”.

Here’s a good article and discussion on Amendment 1.

Posted by Lenny Gurvich | No Comments »

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