In 1992 Florida enacted the Save Our Homes Amendment which affects the taxes we all pay on our homes. If you own a home and have claimed Homestead Exemption and plan on buying another home and leasing the one you currently live in you now have 3 years to move your Homestead Exemption to your new home.
Why would you do this? The Save Our Homes or Homestead Exemption not only lowers the taxable value of your home but also limits to 3% the amount your state property taxes can increase each year. When you view properties for sale this is often why property taxes seem so low on some properties. If the property taxes seem low check to see how long the owner has owned the property.
Since you should not be claiming Homestead on a property you are leasing (under normal circumstances) then being able to move that exemption when you purchase another home in Florida is a great thing to do. Now you simply have another year to roll over the benefit.
Currently prices seem to be going to the moon in Central Florida. With this being a unique situation in Florida there is no telling when it will end. The result of this will be the “Just Value” of homes or the taxable rate of homes will also go to the moon. Those who have filed for Homestead Exemption will see their state taxable rates not go up more than 3% per year even if the property values double or triple. If you pay a city or county property tax this does not apply to that portion.
As a Property Management Company, we always adhere to local and state laws etc. As homeowners we advise you to follow the sound advice of a professional accountant. Contact us for assistance with any property management needs and take full advantage (legally) of Florida Amendment 5.