- September 21, 2018
- Thomas Adam
- Real Estate
Florida residents are poised to vote on an amendment called ”Increased Homestead Property Tax Exemption,” which if passed will give an additional tax advantage to homestead property that has an assessed value of greater than $100,000 and less than $125,000. Meanwhile, homestead property that is valued at greater than $125,000 would receive the entire savings. It is important to note that this valuation is based on the home’s assessed value rather than its market value. For qualifying members, the property tax value would be between $200 to $400 each year. While some city and county officials have argued that this Amendment removes funding from government services, many homeowners have voiced support of the advantages offered through the tax.
Qualifications for Homestead Property in Florida
In Florida, there are three requirements that a piece of property must meet to qualify for homestead protection. These qualifications include the following:
- Residency requirement. Only residents of Florida are capable of claiming the homestead exemption. To qualify as a resident of Florida, you must live in Florida and have the intent to permanently remain in the state. To demonstrate that a person wants to remain in the state indefinitely, some people file affidavits demonstrating an intent to permanently remain in Florida. As a result of this requirement, people who only live in Florida a few months a year are unable to qualify for the homestead property exemption.
- Acreage limitation. To qualify as homestead property, a property in Florida must fall within established acreage requirements. The amount of acreage that is protected depends on the municipality in which the property is located. If property is located within a municipality, only one half an acre qualifies for the homestead exemption. If a residence is located outside of a municipality, a maximum of 160 acres can be protected.
- Owned by a natural person limitation. To qualify for homestead protection, homestead property must be owned by a natural person. This means that a corporation that owns the property cannot qualify for the homestead exemption.
Tax Exemptions for Homestead Property
The law in Florida offers lower property tax assessments if your property qualifies for the homestead exemption. In accordance with the Florida Constitution, every Florida property owner is able to receive a homestead exemption of up to $50,000. While the first $25,000 is exempt from all types of property taxes, the other $25,000 is exempt from non-school taxes. The state of Florida also has the Save Our Homes Amendment which limits the amount of appreciation associated with property that can be taxed. If passed, the ”Increased Homestead Property Tax Exemption” will offer yet a third tax incentive to homestead owners in the state.
Speak with a Property Law Attorney Today
Property law is a particularly complex subject that involves a variety of subjects. If you have questions about the homestead property tax exemption or any other issue, do not hesitate to speak with a knowledgeable property law attorney. Contact Adam Law Group today for assistance.