As a lawyer, I am accustomed to hearing a certain seven-word phrase from my friends and family on a regular basis: "I have a legal question for you." Lately, I have been receiving many questions about Florida's homestead property tax exemption, so I thought it would be helpful to briefly discuss the basic provisions of the Florida law on this point.
Pursuant to the Florida Constitution, "'[e]very person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another legally or naturally dependent upon the owner, shall be exempt from taxation thereon, except assessments for special benefits, up to the assessed valuation of twenty-five thousand dollars ($25,000) and, for all levies other than school district levies, on the assessed valuation greater than fifty thousand dollars ($50,000) and up to seventy-five thousand dollars ($75,000), upon establishment of right thereto in the manner prescribed by law."
WHAT IT MEANS: In Florida, the owner of homestead property is constitutionally entitled to a property tax exemption of up to $50,000 ($25,000 for the first $50,000 in assessed valuation and $25,000 for the assessed valuation between $50,000 and $75,000) if he or she satisfies the statutory conditions set forth by the Florida Legislature.
Pursuant to Florida Statute 196.031(1)(a), "[e]very person who, on January 1, has the legal title or beneficial title in equity to real property in this state and who resides thereon and in good faith makes the same his or her permanent residence, or the permanent residence of another or others legally or naturally dependent upon such person, is entitled to an exemption from all taxation, except for assessments for special benefits . . ."
WHAT IT MEANS: In this statute, the Florida Legislature sets forth 4 basic conditions that must be satisfied in order to qualify for the homestead exemption from ad valorem taxation:
(1) The homestead property must be located in Florida.
(2) The person claiming the exemption must hold legal or equitable title to the property. In other words, the person claiming the exemption must have an ownership interest in the property. In this regard, the property may be held individually, jointly, or through a trust.
(3) The property must be used as a "permanent residence" by the person claiming the exemption or by a natural dependent of the person claiming the exemption.
"Permanent residence" has been defined as "that place where a person has his or her true, fixed, and permanent home and principal establishment to which, whenever absent, he or she has the intention of returning." See Fla. Stat. 196.012(18). Whether a property constitutes a "permanent residence" is a question of fact to be determined by the property appraiser on a case-by-case basis. In making this determination, the property appraiser may consider factors like where children are enrolled in school, where the person claiming the exemption is employed, payment of utilities at the subject property, and the address contained on documents like driver's licenses, vehicle registration, voter registration, bank statements, and federal tax returns. See Fla. Stat. 196.015.
(4) The property must be used as a "permanent residence" as of January 1 of the tax year for which the exemption is sought.
Continue reading "WHAT YOU NEED TO KNOW ABOUT FLORIDA'S HOMESTEAD TAX EXEMPTION" »
This means that your current assessment is based on comparable sales and other market indicators for January 2- December 31 of LAST year. Thus, your 2011 property tax assessment is based on 2010 market data, and changes in the market value of your home that occur after January 1 are not reflected in your 2011 property tax bill. While this may be desirable in a rising market, it deprives homeowners of a tax benefit to which they are legally entitled in a falling market.
