For those who have made a home in Florida and are considering moving to a new house in Florida, one of the most important things to be aware of the recently passed property tax portability amendment which affects the Homestead property.
So, what is the Florida property tax portability?
New Florida law allows residents who move from one main residence in another to bring built-up property tax benefits on the appraised value of their existing home with them to their new home. This could mean a reduction of $ 500,000 in taxable value of a new home, and a huge annual savings of property tax.
Florida primary residences are protected to the maximum percentage increase in the appraised value of each year infield legislation known as the «Save Our Homes».
Without providing portability, if you have moved, you lose all the estimated cost savings created by Save our home and your new home was valued at current market value. Portability Amendment literally made that the tax savings "portable", so that now you can transfer up to $ 500,000 of your accrued benefits Save our homes to their new home.
Example: You sell your current Florida Homestead, having an estimated value of $ 200,000 and Just (Market) price of $ 350 000 $ 350 000 – $ 200,000 = $ 150,000 in Tax Benefit. You buy a new house for $ four hundred thousandth SOH tax benefit of $ 150,000 is used in new buildings Just (Market) Value to create a lower estimated value.
So if you own a home in Florida and look at the reduction in the apartment or if you live in the country and want to take advantage of great prices on waterfront property on the coast, a sharp change in the tax on real estate may not be something to worry about. Those homeowners who are selling a house, to go to another full-time, will find that the taxes on their new property adjusted for economies of their old house.