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1st quarter 2008
Save Our Homes Portability:
Why you are no longer trapped by property taxes.
Earlier this year voters approved new laws that change the
way our homestead exemptions work. The
changes affect how the county tax appraiser calculates the amount of taxes owed
on your property, and in many cases will reduce the amount you owe.
As part of these changes the Save Our Homes exemption is now transferable
to your new homestead, making your tax bill more manageable when you buy a new
home.
If you already have a homestead exemption there is a 3%
limit on the amount your home’s “taxable value” can increase each year.
Obviously the market does whatever it wants, but the difference between
the actual appreciation and the 3% limit is tracked as a Save Our Homes
deduction. The amount that builds
up in this category is subtracted from your property’s value and you pay less
tax each year than you would have without the deduction.
There are properties in Alachua where the taxable value is half or less
than the actual value because the owner has lived in the home for many years.
In the past when you moved to a new home the Save Our Homes
deduction restarted at $0, and anything that built up in the old home
disappeared. The law that was
passed this year changes that. Starting in 2008 the amount you have built up
under Save Our Homes may be portable.
All or part of the Save Our Homes deduction is portable,
depending on whether you are buying a more or less expensive home. To qualify
for portability you have to file a homestead exemption at your new home, and
also file a transfer request. If you are moving to a more expensive home you can
generally apply the entire Save Our Homes amount to your new home.
If you are downsizing the appraiser will calculate what percentage of you
home’s value the Save Our Homes deduction represents and apply that percentage
to the price of the new home.
Many people who have owned their homes for several
years can see an immediate benefit if they have been thinking of moving.
Prior to this change buying a new home almost always meant facing a
larger tax bill – sometimes two or three times larger.
With Save Our Homes portability many people can carry their tax advantage
to a new home so they are no longer trapped in their homes by the threat of a
large tax bill.
Prior Articles
Timing
Your Sale
Market Stable Qtr1 2006
2005 Appreciation 20%
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