As a potential buyer I am seriously looking at ALL taxes in the 4 states I am considering buying in. If it so happens that state #2 has the best taxes for me overall I will buy there. It is NOT about not being able to AFFORD more taxes, it is about not WANTING to pay them. After all, why should I move to a place that I know will tax me 3 times what another place would cost?
Many of us are not so foolish as to throw away money knowing that a certain place will cost to much. Look at new york and new jersey. Their high taxes, property and income have driven over 1 million people away. Taxes are a REAL concern. People do not feel they should have to pay tons of taxes and get almost nothing in return.
How many people buy some property and get nothing but roads and fire protection? It is hard to say I should pay $5,000 a year in property taxes when all I get this year is the same roads that my car registration pay for. The school systems almost everywhere use about 3/4 of the tax base. And most of the people do not have kids in school. So that is no help to those owners is it?
The states need to learn this lesson and keep taxes reasonable.
Recent legislative changes and constitutional amendments aimed at lowering taxes, did NOT create seperate taxing authories. Pinellas had long had seperate taxing authorities as created by state law and NONE of these were created or changed within the last few years as part of the tax revolt. Yes, each sets it's own millage rate as defined by state statute and recent legislation has put restrictions upon how and how much they raise their rates. But, no they weren't "unfortunately created by a recent tax revolt."
In 2005 and 2006 we saw the largest jump in property taxes, since home prices soared abnormally during this same period. As prices have come down, so have property taxes. Amendment One has also had an impact. Below is a simplified explanation that was put out by Capstone Title LLC to help explain it.
AMENDMENT 1 â€“ Simplified
The information below is provided to help you understand the latest Amendment to the
Constitution as it relates to property taxes. For a more detailed explanation please review
the Constitution to the State of Florida Administrative Code.
The Amendment is better explained by breaking it down into five subsections:
1. The additional $25,000, or Second Homestead Exemption
2. The Portability of Save our Homes
3. Tangible Personal Property Tax Exemption for Mobile Homes
4. Tangible Personal Property Tax Exemption for Businesses
5. The 10% cap on assessment increases for all Non-Homestead properties
1. The Additional $25,000 Homestead Exemption:
â€¢ This exemption is automatic. Property owner is not required to take action.
â€¢ This exemption does not exempt value subject to school tax levies.
â€¢ This exemption applies only to that portion of the assessed value greater
2. Save Our Homes Portability:
â€¢ Allows Homestead property owners to transfer the benefits of Save Our
Homes to another property.
â€¢ The amount that can be transferred is limited to $500,000
â€¢ The difference between the previous assessed SOH value and just market
value will be the transfer value if the property owner is moving to a larger
â€¢ The percentage difference between the previous SOH value and the
just market value will be the transfer value if the property owner is
moving to a lesser valued home.
â€¢ This portability applies to all tax levies, just as Save Our Homes always has.
3. Tangible Personal Property Tax Exemption for Mobile Homes
â€¢ This provision relates to a $25,000 exemption.
â€¢ Owner must complete an initial tangible return.
â€¢ Once exemption approved, if the assessed value is $25,000 or less the
property owner is no longer required to file a return with the property appraiser.
â€¢ This provision applies only to attachments and only in instances
where the owner does not own the underlying real estate.
â€¢ The titled portion of the mobile home does not apply to the exemption.
Owners must still purchase decals or license plates.
â€¢ Prior to 2008 all accounts which are assessed for $25,000 or less,
will not receive a notice of proposed taxes.
â€¢ This applies to all tax levies, just as Save Our Homes always has.
4. Tangible Personal Property Tax Exemption for Businesses:
â€¢ The provision relates to a $25,000 exemption.
â€¢ Owner must file a â€œTangible Personal Tax Returnâ€ for 2008.
â€¢ This provision applies to all business tangible personal property.
â€¢ In August the owner will receive a Notice of Proposed Property Taxes.
If the taxable amount is zero, the annual filing requirement is waived.
â€¢ Prior to 2008 all accounts that are assessed for $25,000 or less will
not receive a Notice of Proposed Property Taxes.
â€¢ This applies to all tax levies.
5. The 10% Cap on Assessment increases for all Non-Homestead properties:
â€¢ The provision limits assessment increases to 10% for all non-homestead
â€¢ As of February 2008, there is an application required.
â€¢ The limitation applies to all non-school tax levies.
â€¢ This provision does not become effective until 2009
and will retire after 10 years.
â€¢ Improvements will be assessed at market value.
â€¢ Improvements that exceed a 25% increase will require
the entire property to be assessed at full market value.
â€¢ This provision will not have an impact on 2008
Broker Associate GRI, CDM
Prudential Tropical Realty
That said, if the relocation is within the State of Florida, the recent change to allow for real estate tax portability has eased the relocation. Prior to the portability change was made, many property owners felt trapped in that a move even to a lower valued home meant that the new real estate taxes were higher due to the "Save our Homes cap' that was in place when their home was purchased and claimed as their primary residence (a 3% max cap rate on taxes kept the taxes in check from rising with market values) calculation estimate can be done by looking on the property tax appraiser's website for a property address that is under consideration. Most counties have a tax portability calculator on that website that enables a new owner to estimate what the new taxes would be with the portability factored in. If you have any questions on how to view the calculator, an agent within that county should be able to walk you through that process or you can call/contact the property appraiser's office at the number listed on their website. For non-residents, a cap was set in place at 10%; there is a possibility that a tax amendment that has been proposed to limit it to 5% could be voted/passed but has not been done as yet.
Many other states have lower property taxes(although many states are higher and have an income tax/equal or higher sales tax) but when you add the income tax, current property tax rate and sales tax, Florida actually appears to be a bargain.
Contact a local agent and your tax accountant if you have a question.
Unfortuneately, a recent tax revolt created independant taxing authorities in Pinellas County. Now there exists seperate taxing authorities for schools, fire, and municipalities. It's a mess! According to Pam Dudov, the Pinellas County Property Appraiser, there is no way her department can accurately tell you the taxes until each taxing authority has published and adopted their annual budgets. Read the explanations and disclaimers on their web site. http://(www.pcpao.org)
Of course if taxes are a major consideration for purchasing a home, perhaps the budget is way too tight. Postponing a purchase may be the best option. There are other home owning costs that far exceed the tax issue that will displace citizens from their homes. Most of these issues are common to all ocean and gulf front states with just a few that are Florida specific.
Our little slice of paradise in Pinellas County provides exceptional quality of life benefits in addition to incredible recreational and vocational opportunities. Much of it is acquired and maintained through tax dollars. So far I can't imagine a place I'd rather live.
If you are considering a move to the Sunshine State and would like more information just send me an email or call.
ReMax ACR Elite Group, Inc
Toll Free: 877. 506. 0428
Proerty taxes are actually beginning to come down a little, with the reduction in property values, and for anyone in the area DON'T FORGET: Sept. 18th is the deadline to protest your property assessment!!!
If you haven't seen an assessor in your yard lately, well, that could mean it's time for a review of your proeprty value--it could make a difference in your taxes!
Back to the question--tax rates are all available online through the various county sites--in the Tri-County area (Pinellas, Pasco, and Hillsborough) where I live and work, the rates vary quite dramatically--Pasco is the lowest, at generally under .15 mil, whereas Pinellas and Hillsborough have much higher rates--over .20.
Check Pinellas here (the site does not like IE--use Firefox): http://www.pcpao.org/
Hope this helps!