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On January 29, 2008, Florida voters approved an additional $25,000 homestead exemption to be applied to the value between $50,000 and $75,000. This additional exemption does not apply to school taxes. Therefore you must add the school taxes back in to the Gross Tax amount (approximately $200.00).
Because each year's property value stands alone, it is difficult to estimate taxes before annual property values and millage rates are established.
A property's value is not based solely on the specific purchase price of that property.
Value is a reflection of the market. When sale prices decline, so do values, and conversely when sale prices increase, so do values. An arms-length sale price is one component used, along with other market information, such as comparable sales, to help establish values.
To get a rough estimate of future taxes, you can multiply your purchase price by the current millage rate in the tax district where the property is located. (Please note that that foreclosure or tax deed sales are not considered "arms-length sales," and may not be given the weight of arms-length transactions in our sales comparison approach to value. If your purchase price is a foreclosure price, you may get a more accurate estimate of taxes by using the current Just/Market value of the property or an estimated purchase price if the property was on the open market.)
You can review the latest millage rates from the Tax Collector's website, or use 24.0 as a starting rate for estimating. Please keep in mind that annual millage rates and values may change as of January 1, so this method is for estimation purposes only. If you apply and qualify for Homestead Exemption, you can expect to save about $500 - $800 on your taxes the first year of the exemption. (If you qualify for Cap portability from a previous homesteaded property, you may save more in taxes.) Also, if you apply and qualify for the Low Income Senior Exemption, you can expect your taxes to be reduced by approximately $19 - $204, depending on where you live.
Often, real estate professionals will suggest that you use 85% of your purchase price for estimating taxes. While doing so will give you a ballpark number, be aware that, depending on the date of your sale in relation to the January 1 assessment date and the actions of other buyers in the market, your property value may differ significantly from your purchase price.
It is important to remember that when a property sells, the previous owner's exemptions and Save-Our-Homes Cap will be removed at the end of the calendar year, which can cause a dramatic increase in taxes. Do not rely on the current owner's tax amount when estimating your taxes. More important information on the removal of the Save-Our-Homes Cap can be found here.
CLICK HERE TO SEE HOW COMPLICATED ESTIMATING TAXES IN TODAY'S REAL ESTATE ENVIRONMENT CAN BE!
If you have any questions, please call our information desk at 727-464-3207.
Information received from
http://www.pcpao.org/
