As a homeowner in Florida, you need to be aware of the different types of taxes that may be assessed on your home.
AD VALOREM TAXES vs NON-AD VALOREM
Property tax in Florida can be classified into two categories: ad valorem taxes and non-ad Valorem taxes.
- Ad valorem taxes are based on the value of the property.
Ad valorem taxes are calculated by the calendar year, from January 1st to December 30th, and paid in arrears.
- Non-ad Valorem taxes are based on the use of the property.
A non-ad Valorem assessment is a charge or fee, not a tax, levied to cover the expenses associated with providing certain services or benefits to the property. For example, waste collection and disposal, sewage, lighting, fire protection, and ambulance services are all examples of non-ad Valorem assessments. The non-ad Valorem assessment is calculated using a unit of measurement established by each levying government authority.
The non-ad Valorem assessment is based on the relevant taxing authority’s fiscal year: October 1 to September 30, or a calendar year: January 1 to December 31. These non-ad Valorem taxes are paid in advance.
HOMESTEAD EXEMPTIONS
Homestead exemptions remove a portion of your home’s value from taxation, hence, lowering your taxes. You can claim a homestead exemption for your home if it is your primary residence. The amount of the exemption varies by county. However, the exemption can be as much as $50,000. To qualify for a homestead exemption, you must file an application with the county property appraiser’s office.
PERSONAL EXEMPTIONS
Additionally, there are other exemptions that can further lower your property taxes. These include the widows, widowers, and seniors exemption, the disability exemption, the service-connected disability exemption, and the totally and permanently disabled first responders exemption. You can learn more about these exemptions by contacting your county property appraiser’s office.
SAVE OUR HOMES
In Florida, the Save Our Home Act limits increases in assessed value of homesteaded properties to 3% per year. As a result, this helps to protect homeowners from large spikes in their property taxes. Likewise, it helps to keep taxes affordable for homeowners, while still allowing the property values to increase naturally over time.
PORTABILITY
For Florida homeowners who are ready to move and concerned that their tax bill will skyrocket, there is good news. In Florida, they allow for portability, If you move to a new home, you can transfer your homestead exemption to the new property if it is in the same county and you file the necessary paperwork within 21 days of moving. You can also transfer your homestead exemption to a new home in another county if you meet certain requirements. For example, you must have been a Florida resident for at least one year before you apply for the exemption, and the new home must be your primary residence.
COMMUNITY DEVELOPMENT DISTRICT
If you’re buying a home with a CDD, remember that this is a community development district and these fees will be included in your tax bill. Lakewood Ranch generally has CDDs, as well as new developments in Venice, Skye Ranch, and other areas of Sarasota. However, not all areas of Sarasota have CDDs, so be sure to ask your real estate agent about this when searching for a home.
I explain these in more detail in my video above. Here is the link to the Sarasota County Tax Collector
If you still have questions on property taxes just give me a call. ☎ Connect with Lisa McBride and the team at Sarasota Neighborhood Experts: 941-373-5880 or https://linktr.ee/LisaMcBrideSRQ
