As a homeowner in Southwest Florida or South Florida, it's crucial to understand the benefits available to you, particularly the Homestead Exemption and the Portability of these benefits. These provisions can significantly reduce your property taxes, making homeownership more affordable. In August, you should have received a Notice of Proposed Property Taxes, also known as a TRIM Notice. Here's what you need to know to maximize your savings and protect your investment.
What is the Homestead Exemption?
The Homestead Exemption is a valuable property tax benefit available to Florida homeowners. If you own and occupy your home as your primary residence, you can apply for this exemption to reduce the taxable value of your property by up to $50,000. This reduction can lead to substantial savings on your annual property taxes.
Benefits of the Homestead Exemption:
- **Tax Savings:** Reduces the assessed value of your home by up to $50,000, lowering your property tax bill.
- **Assessment Limitation:** Limits annual increases in assessed value to 3% or the Consumer Price Index (CPI), whichever is lower, protecting you from large tax hikes.
How to Apply for Homestead Exemption
To qualify for the Homestead Exemption, you must:
1. Own the property on January 1st of the tax year.
2. Occupy the property as your primary residence.
3. Apply by March 1st of the tax year.
You can apply online or in person at your county property appraiser's office. Be prepared to provide proof of residency, such as a Florida driver's license, voter registration card, and utility bills.
What is Portability of Homestead Benefits?
Portability allows you to transfer some or all of your Homestead Exemption savings from your old home to your new home within Florida. This is especially beneficial if you're moving to a higher-valued property, as it can help keep your new home's taxable value low.
How Portability Works:
- **Eligibility:** You must have received the Homestead Exemption on your previous property within the last two tax years.
- **Transfer Amount:** You can transfer up to $500,000 of your homestead benefit to your new property.
- **Application:** Apply for portability within the same timeframe as the Homestead Exemption, typically by March 1st.
Important Dates and the TRIM Notice
In August, all homeowners in South and Southwest Florida should have received a Notice of Proposed Property Taxes, commonly known as a TRIM Notice. This notice provides an estimate of your property taxes for the year and includes important information about your property's assessed value and any exemptions applied.
Key Points to Check on Your TRIM Notice:
- **Assessed Value:** Ensure it reflects any Homestead Exemption or portability benefits.
- **Exemptions:** Verify all applicable exemptions are listed.
- **Proposed Taxes:** Review the proposed taxes and compare them to the previous year.
If you have any discrepancies or questions, contact your county property appraiser's office promptly. This notice is your opportunity to address any issues before your tax bill is finalized.
Understanding and leveraging the Homestead Exemption and portability of benefits can lead to significant property tax savings for Southwest Florida and South Florida homeowners. Be proactive in applying for these benefits and carefully review your TRIM Notice in August. If you have any questions or need assistance, don't hesitate to reach out to your county's property appraiser's office or local real estate professional.
For more tips on managing your property taxes and navigating the Florida real estate market, stay tuned to our blog or contact Carmen Sully directly. I am here to help you make the most of your homeownership experience in the Southwest Florida and South Florida areas!
Lee County Residents for more information click on the link below:
https://www.leepa.org/Tutorials/portability.mp4
Palm Beach County Residents for more information click the link below:
https://pbcpao.gov/portability.htm
Carmen Sully, Licensed Realtor
Rent 1 Sale 1 Realty
941-202-2119