Many Florida homeowners are still puzzling over how the new portability measure works, as the March 3rd application deadline approaches for Florida’s homestead exemption and property-tax portability.
Many Florida homeowners are not reading the details contained in the application instructions:
- Many homeowners have sent their applications to the wrong counties.
- Many homeowners have applied who don't meet the criteria.
- And a lot of people don't realize there is a two-year eligibility period for transferring homestead tax benefits.
But helpful information and applications are available online at the Miami-Dade County and Broward County property appraisers' websites at www.miamidade.gov/pa/ and www.bcpa.net/.
The deadline for filing applications for a new homestead exemption is this Monday, March 3rd, 2008, which is required to qualify for both the Save Our Homes cap on Florida property tax assessment increases and portability.
Enacted in 1995, under the Save Our Homes provision, the assessed value on a homesteaded property cannot rise more than 3% a year, no matter how much the market value rises.
During the Florida real estate boom when property values were jumping, that cap generated huge tax savings. But because of the prospect of starting over with a full tax burden at their new place, it also discouraged residents from moving.
Homestead property owners who have switched homesteaded properties since January 1, 2007 can transfer tax benefits within two years now, under Amendment One, which was approved by Florida voters January 29th.
Florida homeowners that are upsizing can carry up to $500,000 in tax-exempt value to the new, more expensive property. Florida homeowners that are downsizing can retain the same proportion of tax savings that they had on their old homes, up to $500,000.
Marcus Saiz de la Mora said, ‘‘some of the more common questions are how much can I port,'' the property appraiser for Miami-Dade, which had received about 1,000 portability applications through Thursday. The Miami-Dade tax appraiser's website has a tax calculator to help taxpayers.
The Broward County Property Appraiser’s office had received some 2,481 applications for portability by the close of business Wednesday, and has processed 1,288 of them, including 100 rejections.
The Broward County Property Appraiser will open its offices in Fort Lauderdale and Plantation Saturday from 8:30 a.m. to 5 p.m. to handle applications and questions. Miami-Dade has no plans for Saturday openings.
The top reasons for rejection:
- A Florida homeowner didn't meet the requirement of changing from one homestead property to another by Jan. 1, 2007.
- In a divorce, if one person moves and the other stays in a homesteaded house, the one who moves cannot claim portability on the property, it remains with the house.
That's not the case, however, if a couple divorces and sells a homesteaded property. In that instance, each one takes half the tax savings with them, according to the Florida Department of Revenue's emergency rules issued this month.
The portability issue has been further clouded by pending litigation.
Filed in Leon Circuit Court by Coral Gables attorney Douglas Lyons of Lyons & Farrar, argue that Save Our Homes and portability, the suits, which commonly result in drastically different property-tax bills for similar home, violate the right to travel and equal protection clauses of the constitution.
Some prospective beneficiaries of portability feel caught in limbo by the court challenge.
Contributed by MLR Realty
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