Many people have been concerned about buying a Florida home because non residents pay a higher tax than a homesteader.
Recently I have been looking for a Florida holiday home. A Florida realtor explained the tax situation to me this way.
The taxes being paid are based upon the owner’s purchase and property assessment. Taxes for a new owner will be based upon the new selling price.
Taxes are paid for in arrears here. That means the seller has to pay the buyer the taxes owed up to the date of the year it is sold again.
This owner may be currently paying $6,000 and it was for 2008. In October, the property is reassessed is sold and the new taxes would be due by March of 2010.
Example: House sells for 200K. New taxes, not homesteaded would be calculated as follows: $16.00 per thousand of assessed value. Assessed value is 90% of selling price.
New taxes would then equal 90% of $3200 ($1600/100K) which would then equal $2880. I hope that helps you understand. (The $16.00/1,000 is the millage rate.)
The above numbers apply for Lee County on the Gulf Side. You would have to check other counties to see how they work their numbers.
Homesteaded means that you can prove that you live in the house for a minimum of 6 months and 1 day a year.
If you are homesteaded, then you get the following benefits:
1. 50,000 of your assessed value is not taxed
2. Taxes cannot go up any given year more then 3%
3. If you sell and re-purchase, your homestead can be transferred.
Obviously numbers & regulations are subject to change. So when considering buying a Florida home call the local tax assessment office or check their website to estimate taxes, don’t leave it to chance. However, I think this demonstrates that it is not as onerous as we have often heard and as many people fear.
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