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Old 11-21-2020, 05:10 AM   #21
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I assume the mortgage lenders need an accurate estimate of the property taxes, wouldn’t they do the math for you?
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Old 11-21-2020, 07:44 AM   #22
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IME the mortgage lenders rely on the borrower to provide that data point... I'm not sure what checking thye do but they don't know what homesteading credits that you might qualify for. The realtor.com website shows the lower assessed value for the subject property... after the Save Our Homes credit that won't transfer to the new buyer.
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Old 11-21-2020, 08:29 AM   #23
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PB, I hope you send a invoice to collect for consultanting services
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Old 11-21-2020, 09:04 AM   #24
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In the mail.

ETA: Actually, I decided to make it pro bono... I didn't want the income to reduce my headroom for Roth conversions.
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Old 11-21-2020, 09:23 AM   #25
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Taxes are a major reason we have stayed where we are. We could have sold our house and bought a new home in a new major inland development with more than 2X the sq ft with the money from the sale and no mortgage. However, our taxes that haven't changed more than a couple of hundred dollars in the past 15 years would have more than tripled and the HOA (which we don't have now) in addition to various other assessments would have been an additional cost that would bring our annual cost to 5X what we are now paying.
So we decided to stay at our home 2 blocks from what is a semi-private beach in an upscale neighborhood from all the new McMansions built in the past 10 years.
OK so we don't have a brand new home with fancy fixtures, granite counter tops, and a steam room shower. But we don't have some of the worries either. The house is insured and if it blows away we would still have the cleared off property which is worth 2X the house.



Cheers!
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Old 11-21-2020, 09:28 AM   #26
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True... some of the schemes like in California and Florida to grant residents property tax relief can sometimes end up as golden handcuffs tying the owners to their long-term residences.

The approach Vermont takes to make property tax relief an annual thing based on income makes more sense to me and doesn't end up handcuffing people to their properties.
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Old 11-21-2020, 09:33 AM   #27
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True... some of the schemes like in California and Florida to grant residents property tax relief can sometimes end up as golden handcuffs tying the owners to their long-term residences.
Florida homestead exemption is portable since 2008.
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Old 11-21-2020, 09:38 AM   #28
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The amount paid includes a 2% discount for paying in full by the 30th of November.
The discount in Florida is 4% for paying in November.
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Old 11-21-2020, 09:44 AM   #29
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The discount in Florida is 4% for paying in November.
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Isnít that determined by each county? Iíve owned properties in three different Florida counties and something is always different between them.
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Old 11-21-2020, 09:49 AM   #30
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Florida homestead exemption is portable since 2008.
Didn't know that... good to know... I stand corrected.
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Old 11-21-2020, 10:07 AM   #31
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Isnít that determined by each county? Iíve owned properties in three different Florida counties and something is always different between them.
No, the discount is statewide.
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Old 11-21-2020, 10:09 AM   #32
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Didn't know that... good to know... I stand corrected.
No, the homestead exemption is not portable in Florida and must be applied for on any new purchase. What is portable is the cap on tax increases which may be carried from one homesteaded property to another.
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Old 11-21-2020, 10:42 AM   #33
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Keep in mind that states that have low or no income tax, or that (like PA) subsidize large groups of people (e.g. no income tax on SS or military pensions), have to get money from somewhere. Property taxes are an attractive target, because they are progressive. The more money people have, the more expensive a home they usually buy, and they can afford higher taxes on it.
Yeah, Property taxes are progressive because as they go up, people who cannot afford them sell their home and rent.

Then the demand for subsidized housing goes up, so property taxes are raised to pay for it, and the cycle continues.

Coming from IL, with one of the highest State taxes and Property taxes (and State debt) in USA.
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Old 11-21-2020, 11:14 AM   #34
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No, the discount is statewide.
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Jives with my tax bill. If I take my combined tax times (1-4%) it is exactly the amount for the earliest payment.
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Old 11-21-2020, 11:20 AM   #35
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No, the homestead exemption is not portable in Florida and must be applied for on any new purchase. What is portable is the cap on tax increases which may be carried from one homesteaded property to another.
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So that's interesting. The seller in the OP's case gets a $365,249 Save Our Homes reduction from just value of $596,688. So if they sell and buy another property with a just value of $400,000 how is the Save Our Homes benefit ported? Is it pro-rated so their adjusted SOH benefit would be $244,851?... or some other number?

Curious as to how it works.
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Old 11-21-2020, 04:18 PM   #36
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Yes, my understanding is that if you bought it and made it your homestead that your property tax would be based on the Just (Market) Value of $596,688 less the $50,000 homestead exemption.

I see the mil rate as 16.3786 on the TRIM notice... not 18.3786. You may also still qualify for the $34,284 agricultural exemption so there may be some potential savings there on county and other tax but not school tax.

Assuming that you would still qualify for the agricultural exemption and with the change in the mil rate I'm getting more around $8,600 a year rather than $10k... that's the $2,593 that the current owner pays plus the $365,249 Save Our Homes assessment reduction that would go away times the 16.3786 tax rate. YMMV. If you get serious about the property you could talk with the county as to what the taxes would be if you bought it and made it your homestead.

BTW, I had to truncate the address to 1620 N SR 53 to find it.

Keep in mind that they do offer significant discounts for early payment... my county offers a 4% discount if you pay by Dec 8, 2020 vs Mar 31, 2021... if Madison county offers similar terms that would drop it to about $8,250/year.

Thanks for clarifying and going into detail. I had to use the map on the assessors web page to locate the property as it didn't go directly with the address as you found. I'm not sure where I got 18.3786 as I also saw 16.3786 on the tax estimator page. Madison Co property tax page is very useful. This isn't the right property for us, way to large, too far from a beach and more than what we would like to pay, but love the land and privacy when compared to a subdivision or in-town. This look into estimating tax on a property purchase for us helps in our continued search.

Thanks
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Old 11-21-2020, 05:37 PM   #37
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The home we bought a year ago is 3940 square feet, and we're having to pay our first property taxes before the EOY.

To think I'm complaining about $1347 in Alabama property taxes. Because my wife is disabled, next year and beyond the taxes will be $0000.

Let me just keep my mouth shut.

You can see why so many buyers expected to buy in Florida are buying in Gulf Shores, Orange Beach and the Alabama Gulf Coast. And defined pensions and Social Security are not taxed either--no state income taxes until RMD's kick in @ 72 years of ate.
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Old 11-21-2020, 07:16 PM   #38
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True... some of the schemes like in California and Florida to grant residents property tax relief can sometimes end up as golden handcuffs tying the owners to their long-term residences.

The approach Vermont takes to make property tax relief an annual thing based on income makes more sense to me and doesn't end up handcuffing people to their properties.
Not true. In California under Proposition 13:

Property owners of at least 55 years of age may transfer the base year value of their principal residence to a replacement principal residence. The replacement must be of equal or lesser current market value and located within the same county.
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Old 11-21-2020, 07:18 PM   #39
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The discount in Florida is 4% for paying in November.
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You are correct. I looked at my latest statement and the discount is 4% if payed by the 30th of November.
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Old 11-21-2020, 07:37 PM   #40
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You are correct. I looked at my latest statement and the discount is 4% if payed by the 30th of November.
Yep just paid it with the 4% discount. Hopefully the 3% property tax limit yearly stays in place in FLA.
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