Florida Real Estate Blog

What is "Millage"? How Does It Affect My Home's Property Taxes?

I was out with some customers today, and they were asking me about the property taxes on a home they were interested in. I mentioned what the millage was for the county, and they said they did not understand what that word meant. Millage is a part of the equation local governments use to determine how much property tax you are required to pay. Like millipede and millenium the first half of the word is related to "thousand". For tax purposes, the millage is what you pay for every $1,000 worth of assessed value the county property appraiser feels your home is worth.

Here is how it works. The county property appraiser puts a value on your home using specific criteria. The result is called your home's Assessed Value. It is supposedly near to the true value, but often is not. For example, I bought my home last year for $98,000 yet the assessment was set at $59,000. Not sure why, but I am not going to argue the point. Most homes I see are assessed at less than what I could sell them for. Once the assessment is set you will pay the millage (or one mil) for each $1,000 of assessed value as your yearly property taxes. Here is an example for a home with an assessed value of $210,000 in an area with a millage of $15:

$210,000 ÷ 1,000 = 210 thousands

210 X $15 millage = $3,150 Your yearly property taxes

Of course, the millage is usually an odd amount like 15.932, but the calculation is the same.

Your millage will vary depending on where you live. Here in Pasco County, if you live in the unincorporated areas of the county your taxes will be less than if you lived in cities like Zephyrhills or Dade City where you will have a higher millage since you have city services.

Now, to add to the confusion, in Florida we have several exemptions that you may qualify for if your home is your permanent HOMESTEAD property. If it is, then you can deduct at least $25,000 from your home's assessed value. This is called the Homestead Exemption, and your taxes are calculated using that amount. Changes have also been made to allow you to deductt another $25,000 if your home is worth at least $75,000. The assessment between $50,000 and $75,000 is exempt, except for its use to calculate school taxes. It can seem confusing at times, but in the end it means you save a little more money each year.

Other exemptions for low income seniors, disabled veterans, etc exist. You can read more about these exemptions and how to apply for them at my website where I have placed links to the county property appraisers in our area. Just go to: www.jelwell.century21bnr.com and click on the County Property Appraiser button.

People who buy homes here should not rely heavily on a home's current tax bill. Our updated contract forms even refer to this in their terms. There may be exemptions in place that you will not qualify for, the assessment could go up or down, and the millage varies from year-to-year. So there is 0% chance that the sellers' taxes will be your taxes. You might actually pay less! But one thing is for sure about property taxes. They will change!

In addition to the exemptions, we also have something called "Save Our Homes". This was enacted in 1992 to prevent people from losing their homes due to the fact that their home's assessed value had risen so high that they could no longer afford to pay the taxes. Save Our Homes limits yearly increases of a homesteaded property's assessed value to 3% or the Consumer Price Index, whichever is less. For people who have lived in a home for many years this will make their taxes look very low. Something to keep in mind if you are thinking of buying a home from owners who have lived in it for many years. When the home is sold, the assessed value will rise immediately to the real assessed value that the county property appraiser has set for the home. As a result, the taxes the new buyers will pay may be substantially higher than those of the previous owners.

If you have further questions, contact you county's property appraiser's office. I am sure that their personnel will be more than happy to assist you!

Hope this has helped clarify things a bit.

John Elwell - REALTOR at CENTURY 21 Bill Nye Realty, Inc. 813-783-4444 or e-mail: jelwell1@tampabay.rr.com Licensed in Florida.

Little Time Left to Claim Your 2012 Homestead Exemption in Florida! Better Hurry!

This message is for those of you who purchased and occupied a home during 2011 that will be your permanent (homestead) residence. Or for those who have now decided to live in their vacation homes on a permanent basis and are no longer declaring a home in some other state as their homesteaded residence.

Do be aware that homeowners who plan to make their homes their permanent residences, or in other words, their homesteads, should apply for the exemptions just has they have in the past. That means that they had to close on the purchase of their home and occupy it before the end of 2011.

Then they need to file for their exemption(s) by the close of business on March 1, 2012. You need to check with your local property appraiser to see what ALL of the requirements are. Having a Florida drivers license and car registration are just a couple of them. Your appraiser can give you the complete rundown.

Do note that in addition to the Homestead Exemption, there are others for: widowed persons, disabled persons, diabled veterans, blind individuals, and active military personnel. Your local property appraiser can give you more details about what is available and which exemptions you might qualify for.

All of the exemptions you qualify for will apply to those persons who requested and got their homestead exemption by the deadline. But again, I suggest strongly that if you have any doubts at all, you should contact your local county property appraiser as soon as possible! Time is running out quickly!  The appraisers are the experts in these matters and their offices can answer all of your particular questions.

The main thing is to be sure you apply in time. If you meet the legal requirements, you have nothing to lose by declaring your homestead with the county. If you do not do so, you could be making a very costly mistake.

If you go to my website you will also find a menu button for our local county Property Appraisers. To get there just click on the following link: www.jelwell.century21bnr.com  Then click on the button for Property Appraisers. If you find your county listed, just click on that link. If your county is not there, then click on the bottom link that will show you a list of all of the counties that exist in Florida. 

Each of the appraiser's sites will have information concerning Homestead Exemptions and also contact telephone numbers if you wish to speak with someone in the appraiser's office. I am sure they will be happy to answer any questions that you may have. I have always found them to be very helpful.

If you like, you can click on the following link to download a brochure in Adobe PDF format that is currently on our Pasco County site. Your own county may also have similar documents. Click here if you would like to review this document:  Download Homestead Exemption Brochure 2011 for Pasco County, Florida

So if you believe that you qualify for a Homestead Exemption or one of the many others, I suggest that you start making some calls right now so you can be sure that everything is done correctly and in time. Do not wait until the last minute.  In this way you will get all of the exemptions that you deserve!

For more information or questions about this topic you can call JOHN ELWELL - REALTOR at CENTURY 21 Bill Nye Realty, Inc. 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

2011 Truth in Millage (TRIM) Notices are Arriving Around Florida This Week!

I opened my mailbox on Saturday and found a letter from Mike Wells, the Pasco County Property Appraiser where I live, telling me what my proposed property taxes for 2011 would likely be. Probably most of Florida's residents are also receiving these notices, also called Truth in Millage notices (TRIM). It is worth your while to closely examine the one that pertains to the property(s) that you own.

The notice will show you 3 main things:

1. What your property taxes were last year.
2. What they will be this year if proposed budget changes are not made.
3. What they will be if proposed budget changes are made.

Below are the front and back of a typical TRIM notice from Pasco County that you can click on and open as pictures. You may need to increase or decrease the view size to see them properly. 100% or 150% is usually enough to make them legible. But use whatever works best for your computer screen. Don't forget to hit the BACK button when you are finished looking at the documents or you will not return to this page. :)

 
Some of you will notice that even if the budget does not change, your taxes could change. This is likely due to a change in the assessed value of your home. If its value went down, this often helps to lower your taxes. If the value of your home goes up then your taxes may go up.

Your taxes can also go up or down depending on the MILLAGE rate. That is the amount you pay for each $1,000 of assessed value. So, for example, if your home is assessed at $60,000 by the county for taxing purposes and the millage is $20 per thousand of value - $20 X 60 = $1,200 property taxes, plus any special fees the county assesses. On the above bill you can see such a special fee in the amount of $62 for County Solid Waste costs.

There is a section on the left-hand side in the center where you can see what the county said your home was worth for taxing purposes (not necessarily resale value) last year and this year. Mine went down, and therefore it looks like my taxes may be a little lower this year. That may or may not be the case with your property. All properties are at least slightly different in some ways.

And if you qualify, there are exemptions that can lower the assessed value of your property and therefore the amount of your taxes. The Homestead Exemption is one of the best known of these.

The top section of the page (at least in Pasco County, your county's may be different) shows where your money will go, such as:

• Public schools
• City taxes (If you live in an incorporated city like Zephyrhills or Dade City)
• Water Management District
• Independent Special Districts
• Voter Approved Debt Payments

Keep in mind that there are also fees, not taxes, that we often have to pay that are not calculated using our homes' assessed values. For example: street lights, solid waste management, Community Development District Fees (CDD's), etc.

The notices also will tell you where and when the various hearings on the different budgets will take place. Remember there are school budgets, city budgets, county budgets, etc. Not just one budget that covers everything we are taxed for.

On the back of Pasco County's TRIM page there is an Explanation Sheet that is very informative. On that same sheet there are contact phone numbers that you can call to get more information about your taxes. If you feel your taxes are too high, you can appeal them and this sheet also explains that process. Do not delay, you do not have forever to do this. As an alternative, you can also go to the Appraiser's office in person. The addresses of all of the offices are listed on the information brochure.

So keep an eye on your mailbox. If you do not receive your TRIM notice this week, you may want to call your county property appraiser's office and see what is going on. If you are unsure how to find your county's appraiser, you can go to my webpage at: www.jelwell.century21bnr.com and click on the left-hand button labeled County Property Appraisers. You will either find yours listed there or the link to the state site that will give you contact information for all appraisers in the entire state.

If I can be of further assistance, do not hesitate to contact me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com  John Elwell - REALTOR at CENTURY 21 Bill Nye Realty, Inc. in Zephyrhills, Florida.

Florida Gives Property Tax Break to Some Active Duty Military Personnel

TALLAHASSEE, Fla. – May 17, 2011 – If you have clients who served in Iraq or Afghanistan during 2010, they’ll want to know about new legislation providing a tax break for homestead owners.

HB 1141 implements a constitutional amendment approved by voters in 2010 and provides a new homestead exemption for military personnel on active duty overseas. The exemption is based on the amount of time the individual served overseas.

How to calculate the tax break
Taxable value of the property multiplied by the percentage of time spent overseas in 2010. (Calculate percentage of time spent overseas by taking the number of days overseas and dividing it by 365).

So, if someone spent six months overseas in 2010, he or she would get a 50 percent discount. If someone spent the entire year overseas (12 months), he or she would get a 100 percent discount.

The property tax discount applies to 2011 taxes, but applicants must apply to their county property appraiser by June 1. If applicants miss the June 1 deadline, they have a second chance, but must apply with 25 days of receiving their assessment notice (TRIM Notice) and demonstrate extenuating circumstances.

“Since many counties do not even have an application form yet, you might recommend (that applicants) send a letter to their county appraiser before June 1,” says Vicki Weber, an attorney with Hopping Green & Sams in Tallahassee, Fla. “In the letter, they should say, ‘I know about HB 1141, and I was deployed overseas last year. I qualify, and I will submit an application as soon as you send me one. But in the meantime, consider this my application.’”

After 2011, the application deadline is March 1.

© 2011 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

Twenty Percent of Canadians Interested in Owning Property in United States

MONTREAL – March 25, 2011 – A new survey from BMO Bank of Montreal and conducted by Leger Marketing finds that one in five Canadians would now consider purchasing property in the United States. Lower home prices and a strong Canadian dollar have sparked their interest in purchasing U.S. property.

Overall housing prices in the United States have fallen by 30 percent over the past four years. However, prices in traditional Canadian snowbird destinations have dropped even more. For example, prices in Tampa are down 44 percent, Phoenix fell 54 percent, Las Vegas 57 percent, and Miami 49 percent.

“Now, with the American economy and employment gaining strength, home sales should pick up and put a floor under soft prices,” said Sal Guatieri, senior economist, BMO Bank of Montreal. “We expect prices to rise over time as the overhang of unsold homes eases.” He also expects the American dollar to strengthen, which would add to the investment potential for Canadians who jump into the real estate market now.

Other survey findings:

• Men are more likely to consider purchasing a U.S. home, 29 percent compared to 16 percent of women.

• Regionally, residents of Alberta (31 percent), British Columbia (28 percent), and the Prairie Provinces (27 percent) are most interested in buying U.S. property.

Some Canadian banks, such as BMO, have branch offices operating in Florida and elsewhere in the U.S.

© 2011 Florida Realtors®

 Reprinted with permission. Florida Realtors®. All rights reserved.

Time Running Out to Apply for Your 2011 Homestead Exemption in Florida!

This message is for those of you who purchased and occupied a home during 2010 that will be your permanent (homestead) residence. Or for those who have now decided to live in their vacation homes on a permanent basis and are no longer declaring a home in some other place as their homesteaded residence.

Do be aware that homeowners who plan to make their homes their permanent residences, or in other words, their homesteads, should apply for the exemptions just has they have in the past. That means that they had to close on the purchase of their home and occupy it before the end of 2010. Now they need to file for their exemption(s) by March 1, 2011. You need to check with your local property appraiser to see what ALL of the requirements are. Having a Florida drivers license and car registration are just a couple of them. Your appraiser can give you the complete rundown.

Whatever exemptions you qualify for will apply to those persons who requested and got their homestead exemption by the deadline. But again, I suggest strongly that if you have any doubts at all, you should contact your local county property appraiser as soon as possible! Time is running out quickly!  The appraisers are the experts in these matters and can answer all of your particular questions.

The main thing is to be sure you apply in time. If you meet the legal requirements, you have nothing to lose by declaring your homestead with the county. If you do not, you could be making a very costly mistake.

If you go to my website you will also find a menu button for our local county Property Appraisers. To get there just click on the following link: www.jelwell.century21bnr.com  Then click on the button for Property Appraisers. If you find your county listed, just click on that link. If your county is not there, then click on the bottom link that will show you a list of all of the counties that exist in Florida. All of the sites will have information concerning Homestead Exemptions and also contact numbers if you wish to speak with someone in the appraiser's office. I am sure they will be happy to answer any questions that you may have. I have always found them to be very helpful.

If you like, you can click on the following link to download a brochure in Adobe PDF format that is currently on our Pasco County site. Your own county may also have similar documents. Click here: Download 2011 Homestead Exemption Brochure for Pasco County, Florida

So if you believe you qualify for a Homestead Exemption or one of the others, I suggest that you start making some calls right now so you can be sure that everything is done correctly and in time. Do not wait until the last minute.  In this way you will get all of the exemptions that you deserve!

For more information or questions about this topic you can call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

Close & Occupy Your Florida Home by 2010's End if You Want to Get a Homestead Exemption for 2011

This message is for those of you who purchased a home during 2010 that will be your permanent (homestead) residence or for those who have now decided to live in their vacation homes on a permanent basis and are no longer declaring a home in some other place as their homesteaded residence.

Do be aware that homeowners who plan to make their homes their permanent residences, or in other words, their homesteads, should apply for the exemptions just has they have in the past. That means that they must close on the purchase of their next home and occupy it before the end of 2010. Then they need to file for their exemptions by March 1, 2011. You need to check with your local property appraiser to see what ALL of the requirements are. Having a Florida drivers license and car registration are just a couple of them. Your county's appraiser can give you the complete rundown.

Whatever exemptions you qualify for will apply to those persons who requested and got their homestead exemption. But again, I suggest strongly that if you have any doubts at all, you should contact your local county property appraiser before the end of 2010! The county appraisers are the experts in these matters and can answer all of your particular questions.

The main thing is to be sure you apply in time. If you meet the legal requirements, you have nothing to lose by declaring your homestead with the county. If you don't do it in time, you could be making a very costly mistake.

If you go to my website you will also find a menu button for our local counties' Property Appraisers. To get there just click on the following link: www.jelwell.century21bnr.com  If you find your county listed, just click on the link that will give you a list of all of the counties that exist in Florida. All of the sites will have information concerning Homestead Exemptions, and also contact numbers if you wish to speak with someone in the appraiser's office. I am sure they will be happy to answer any questions that you may have. I have always found them to be very helpful. If you like, you can click on the following link to download a brochure in Adobe PDF format that is currently on our Pasco County site: Download Homestead Exemption Brochure-Pasco County  Your own county probably has similar documents.

If your county is not listed, I have included a link that will display all of the internet hyperlinks for all of the counties in the State of Florida. By clicking on your county's name you should be able to find your appraiser's site very easily.

So if you believe you will be closing and occupying a home that will be your primary residence here in Florida before the end of 2010, I suggest that you start making some calls now so you can be sure that everything is done correctly and you get all of the exemptions that you deserve!

For more information or questions about this topic you can call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

Property Tax Bills Have Arrived in Florida for the 2010 Tax Year

As many Floridians know, we receive our property tax bills here on the 1st of November each year. Mine arrived on Monday. Here we pay for the year that has just gone by. Our bills come out before the end of the year, but are not truly due until after 2011 has begun, and are not overdue until a few months after that.

The good news is that if you pay your bill early, you get a discount. Depending on how large your tax bill is, that can be a nice little savings for you. So I encourage you to pay early if you can.

It appears that in our county both the county tax millage and the municipal (city) millages went up this year. As far as assessed values go, some went up and some went down. A real mixed bag for some reason. But the changes in either direction appear to be minimal.

Do look over your bill and make sure that it is correct. If you have any questions, or if your tax bill did not arrive, you can find your county's tax collector's office by clicking on the link at the bottom of this page. For those of you that live in Pasco County like I do, you can click on this link: Pasco County Tax Collector  It is very important that the tax collector have the correct address for you so they can send you the bills each year.

For the rest of you, click here to see a list of the other county tax collectors in the state and links to their sites: http://dor.myflorida.com/dor/property/taxcollectors.html  Most of them will have plenty of tax information on their sites along with contact information.

You still have several months to pay your bills (unless your bank has an escrow account set up for the taxes and insurance, and THEY pay the bills for you.) This should all be explained on each bill notice.  But I wanted to make you aware that the bills have gone out and should have arrived at your mailboxes by now.

If I can be of further assistance, do not hesitate to contact me at: John Elwell - REALTOR at CENTURY 21 Bill Nye Realty, Inc.  813-783-4444 or e-mail at: jelwell1@tampabay.rr.com You can also visit my main webpage where I have a link to the county property appraisers here and around the state of Florida. Just click here: www.jelwell.century21bnr.com

Florida Supreme Court Takes Amendment 3 off the November 2010 Ballot

TALLAHASSEE, Fla. – Sept. 1, 2010 – Amendment 3 is off the November ballot. The proposed constitutional change would have offered qualified homebuyers who had not owned a home in eight years a property tax reduction in their first year that progressively declined over time.

If passed, the amendment would have also benefited commercial interests by reducing the cap on yearly taxable value increases of commercial and non-homestead properties to 5 percent, down from a 10 percent yearly cap now in place.

The Tallahassee judge that removed Amendment 3 from the ballot did so because he found the wording misleading. To qualify for the property tax reduction, homebuyers had to make the purchase after Jan. 1, 2010, a fact not included in the wording voters would read in the ballot box. The judge feared some voters would approve the amendment erroneously, thinking that they would receive the new property tax break. By agreeing with the lower court decision, the Florida Supreme Court finalizes the removal.

“We are, of course, disappointed that the courts removed Amendment 3 from the November ballot,” says John Sebree, Florida Realtors vice president of public policy. “However, we do see an opportunity in this. The Florida Legislature clearly favors a yearly cap on property taxes for commercial real estate, as well as a break for first-time homeowners.”

Sebree says Florida Realtors will turn to lawmakers again in the 2011 session of the Florida Legislature, and believes there is a good chance of getting a stronger amendment on a future ballot.

In addition, the Supreme Court struck down two other proposed amendments to the Florida Constitution, Amendment 7 and Amendment 9. Amendment 7 was an attempt to add additional standards to redistricting. Amendment 9 was the “health care freedom” amendment that would have banned a mandate that individuals purchase health insurance.

The court allowed two redistricting amendments to remain on the ballot, Amendment 5 and Amendment 6.

Reprinted with permission. Florida Realtors®. All rights reserved.

2010 TRIM - Truth in Millage Letters Arriving at Florida Residences Now

I opened my mailbox this afternoon and found a letter from Mike Wells, the Pasco County Property Appraiser where I live telling me what my proposed property taxes for 2010 would likely be. Probably most of Florida's residents are also receiving these notices, also called Truth in Millage notices (TRIM). It is worth your while to closely examine the one that pertains to the property(s) that you own.

The notice will show you 3 main things:

1. What your property taxes were last year.
2. What they will be this year if proposed budget changes are not made.
3. What they will be if proposed budget changes are made.

Below are two examples of TRIM notices from Pasco County that you can click on and open as pictures. You may need to increase the view size to see them properly. 50% is usually enough to make them legible.

Some of you will notice that even if the budget does not change, your taxes could change. This is likely due to a change in the assessed value of your home. If its value went down, this often helps to lower your taxes. If the value of your home goes up then your taxes may go up.

Your taxes can also go up or down depending on the MILLAGE rate. That is the amount you pay for each $1,000 of assessed value. So, for example, if your home is assessed at $60,000 by the county for taxing purposes and the millage is $20 per thousand of value - $20 X 60 = $1,200 property taxes, plus any special fees the county assesses.

There is a section on the left-hand side in the center where you can see what the county said your home was worth for taxing purposes (not necessarily resale value) last year and this year. Mine went up, and therefore it looks like my taxes may be a little higher this year. That may or may not be the case with your property. All properties are at least slightly different in some ways.

And if you qualify, there are exemptions that can lower the assessed value of your property and therefore the amount of your taxes. The Homestead Exemption is one of the best known of these.

The top section of the page (at least in Pasco County, your county's may be different) shows where your money will go, such as:

• Public schools
• City taxes (If you live in an incorporated city like Zephyrhills or Dade City)
• Water Management District
• Independent Special Districts
• Voter Approved Debt Payments

Keep in mind that there are also fees, not taxes, that we often have to pay that are not calculated using our homes' assessed values. For example: street lights, solid waste management, Community Development District Fees (CDD's), etc.

The notices also will tell you where and when the various hearings on the different budgets will take place. Remember there are school budgets, city budgets, county budgets, etc. Not just one budget that covers everything we are taxed for.

On the back of Pasco County's TRIM page there is an Explanation Sheet that is very informative. On that same sheet there are contact numbers that you can call to get more information about your taxes. If you feel your taxes are too high, you can appeal them and this sheet also explains that process. Do not delay, you do not have forever to do this. As an alternative, you can also go to the Appraiser's office in person. The addresses of all of the offices are listed on the information brochure.

So keep an eye on your mailbox. If you do not receive your TRIM notice this week, you may want to call your county property appraiser's office and see what is going on. If you are unsure how to find them, you can go to my webpage at: www.jelwell.century21bnr.com and click on the left-hand button labeled County Property Appraisers. You will either find yours listed there or the link to the state site that will give you contact information for all appraisers in the entire state.

If I can be of further assistance, do not hesitate to contact me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com