You don’t move to Florida just because
of Taxes, but it doesn’t hurt!

New owners of island property frequently are curious about the property tax relief they may experience from declaring Florida as their primary residence. We all know that Florida does not have a state income tax, nor a state capital gains tax. As a resident, these are both terrific benefits when moving from a state that does levy these taxes. What sometimes is overlooked or not understood is that there can be a significant savings, over time, on your property taxes.

As the owner of a home in Florida, you can declare this property your primary residence. Yes, there is a form to complete and you need to be here six months plus one day to qualify, plus a few other requirements. After registering your property for Save our Homes (SOH), you will start the clock on both reducing your taxes and for keeping their increase lower than they might have been without the declaration.

Roughly speaking, upon declaring the property your Homestead, there is a $50,000 reduction in your assessed value upon which your taxes are calculated – hence, the initial savings. From there, the tax increases are reduced due to the fact that your property’s assessed value increase is limited to the lesser of the Consumer Price Index (CPI) or 3%. If you have not got the Homestead classification on your property, the assessed value can be increased by as much as 10%! Ouch!

Being informed on how this can affect you can mean money in your pocket. For a more detailed examination and example of what this would mean in dollars and cents, you can follow this link. https://sanibelislandsensations.com/sarah_s_blog1/view/1715

The link for the Homestead Exemption application is: https://www.leepa.org/Exemption/hxdownloadforms.aspx