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Florida Taxes
The bulk of local government income is produced by property taxes. Cities, counties, school districts, and other special taxing districts levy taxes by millage rate. The millage rate is multiplied by the value of the property then divided by 1,000 to determine the amount of taxes. Florida has a Homestead Exemption law that allows eligible homeowners to deduct $25,000 from the assessed value prior to computation of taxes due. Homestead ExemptionFlorida provides a valuable tax benefit for residents whose primary residence is in Florida: the first $25,000 of value in the home is not taxed! Recently, a new exemption also applies to the third $25,000 value of the home, and the ability to take your exemptions with you to a new property (portability) means existing Florida homeowners don't have to sacrifice all their exemption when they move within the state. According to the Lee County Property Appraiser: To qualify you must: "A. have title to the residence; B. reside thereon; C. be a Florida resident (A., B. & C. all as of January 1st of the year of application); and D. apply (in person or by mail via a downloaded application from our website) by March 1st ... Florida residency is established by holding Florida driver's license, Florida vehicle tag(s), Florida voter registration number(s) or declaration of domicile, Social Security numbers and a recorded deed." Additional tax benefits are available for widows and widowers, and seniors 65 and over in certain cities. Annual Tax Increase Cap
This benefit is designed to protect residents on fixed incomes from the negative affect of rapidly rising home values. While you still benefit from increased equity in the home, you are guaranteed that your assessment value will not increase by more than 3% a year. Note, however, that this is not a cap on tax rates, but the assessed value of the homesteaded property. |
Copyright 2009 ¤ Florida Statewide Home and Condo
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The state of Florida has
no
personal income tax. Sales tax starts at 6 percent (with counties
having the option to add to that rate), and there are no taxes on
personal services. The corporate income tax rate is 5.5 percent and is
assessed on gross receipts and not on existing inventory.
Another
tax benefit unique to Florida is our annual tax increase cap, called "Save Our
Homes (SOH)". According to the Lee County Property Appraiser: "SOH places a
limitation of 3% on annual assessment increases on
homestead exempt property. For all property
first granted homestead exemption in the prior year, that year’s assessed value
will be the base value for the implementation of "Save Our Homes". Thereafter,
the assessed value will not increase more than 3% or the percentage change in
the Consumer Price Index, whichever is less. The property’s market value may
differ from SOH assessed value. SOH assessed value will never be greater than
market value."