Same house, different taxes: why your property taxes aren’t the same as your neighbor’s
When it comes to property taxes, many homeowners assume that living in identical homes in the same neighborhood will result in similar tax bills. However, this is a common misconception. In reality, your tax bill can differ significantly from that of your neighbor—even if you both own homes with the same Just Market Value and purchase year. Let’s explore this scenario through the examples of Neighbor 1 and Neighbor 2, whose homes are both valued at $356,000 and benefit from a Homestead Exemption of $50,000.
The Basics: Market Value and Homestead Exemption Explained
At first glance, both homes have an identical Just Market Value of $356,000 and both homes benefit from Homestead Exemption that reduces the taxable value by $50,000. Which is around an $800 savings in property taxes. However, this is where the similarities start to diverge.
Neighbor 1: Leveraging Additional Tax Benefits
Neighbor 1 is fortunate to have previously owned a homesteaded property in Florida. This enables them to take advantage of Portability which gives a Florida property owner the ability to transfer some or all of the Save Our Homes benefit on a previous homestead to a newly established homestead within three preceding tax years. The Save Our Homes (SOH) benefit is the difference between the Just Market Value and Assessed Value. This additional tax savings benefit limits any annual increase in Assessed Value to 3% or the Consumer Price Index, whichever is less.
In addition to the SOH benefit, Neighbor 1 also qualifies for an additional Senior Homestead Exemption. Since they turned 65 on or before January 1 of the current year and their Adjusted Household Income falls below $36,614, they can benefit from further reductions in their taxable value.
Neighbor 2: Missing the Mark on Savings
In contrast, Neighbor 2, despite having the same Just Market Value and Homestead Exemption, does not benefit from a previous homestead exemption and is ineligible for the Senior Homestead Exemption. As a result, their taxable value is $306,000, leading to a potentially higher property tax bill.
The Importance of Awareness and Action
This scenario underscores the critical need for homeowners to understand available tax exemptions and benefits. Not all homeowners are aware of the various exemptions that could significantly reduce their tax value. and result in substantial savings.
Resources are available for those curious about their property’s value or exemptions they may be eligible for. Visiting www.paslc.gov can provide homeowners with a detailed list of exemptions and valuable information. Additionally, contacting our office at 772.462.1000 can offer personalized assistance.
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