Tax Information

The following are my interpretation on some tax items that I believe every home buyer in Florida should be aware of.

The first thing is that the current taxes do not reflect what will be paid after the first year and we do pay taxes in arrears.  That means 2007 taxes are actually due to be paid by March 31st of 2008. Note you can pay them by November 30th of 2007 and get a 4% discount. When you buy your home the seller will actually be charged and you will be given the money for taxes accrued till the closing date.

The second thing is that we have no personal income tax so our property taxes pay for the schools and just about everything else.  There is a small intangible tax on investments, stock etc.

The third thing is that we have protection in place for home owners who are homesteaded (This home is their principle residence).  You get a $50,000 deduction off the appraised value of your home and the appraised value of your home can only be increased by 3% per year.  This is why current taxes do not mean much.   Our property values have increased greatly over the last 5 years, doubled and tripled in some cases so people are paying much less than the new owners will.

The Fourth thing is that your new home will be appraised for the next year based on its real market value.  In general, the appraisal will be between 85% and 100% of your purchase price.

Finally, the new appraised value will be multiplied by the local tax rate (less your $50,000 if you are homesteaded) which is between .018 and .02 percent to give you your taxes.  So on a home that sells for $300,000 you are looking at taxes between $4,140 and $5,500 if you homestead the property.  If you pay the taxes by November 30 of the tax year you get a 4% discount ($165 to $220).

The above is just for general information.  The County Tax Department is the best authority to give you the most accurate information.  They can be reached at 772 567-8000 ext. 1343.