There is a “Super Senior Long Term Exemption” that completely exempts some senior citizens who have lived in their homes for more than 25 years from having to pay any property taxes at all. Check with your county property appraisal office for a list of these exemptions. Florida’s property tax rates are relatively low when compared to other states. WalletHub ranked Florida no. 24 in the nation for effective property tax rates in 2021, with the average homeowner paying 0.89% of their home’s value in taxes each year. This amendment aims to protect homeowners from dramatic increases in property taxes due to surges in property values.
Valencia Parc at Riverland is one of the newest 55+ communities on Florida’s East Coast. In this new community, you’ll find a million ways to have fun with everything connected through miles of eco-friendly greenways without ever having to get in your car. Walk or ride your golf cart to all the amenities right within your own neighborhood and to nearby shops and restaurants or enjoy a car ride to spend the perfect day at the beach. Let’s say you own a home in Orlando, which is located in Orange County, and your county appraiser looks at your property and determines your home is worth $350,000. But if you live in a far northern climate, remember that a sunroom that’s not temperature controlled can end up making your home even more difficult to heat, if not properly planned for.
Property Assessment Reductions in Florida
On average, expect to pay $30,000 to $80,000 for a full solarium installation. A four-season sunroom is an addition to your home that’s fully insulated and often includes plumbing, HVAC and electricity. According to Home Guide, these premium structures cost between $25,000 and $80,000. As a real estate professional, the more knowledgeable you are about the advantages of homeownership, the better you can help your customers.
Usually, local governments will charge property taxes using a millage rate. Millage is a tax rate defined as the “dollars charged for each $1,000 of value.”1 One mill equals one dollar of tax for every $1,000 of your property’s assessed value. Unlike in some states, Florida’s property tax is not based on income level, which means everyone pays the same rate regardless of their earnings. Florida ranks relatively low real estate taxes for property taxes compared to other states — the average property tax rate in Florida is 0.98%, lower than the national average of 1.07%. However, because of the higher average property values in Florida, homeowners may end up paying more in dollar terms than in other states. Most Realtors® know about the $50,000 standard homestead exemption, but did you know that there are around two dozen other exemptions?
Impact of Local Government Budgets
When the property tax revenue is constrained, it’s often the community services such as parks, libraries, and community centers which face the brunt of budget cuts. Reduced funding can result in decreased program offerings, facility closures, and layoffs of public employees, thereby severely affecting the quality of life in municipalities across Florida. Florida’s Save Our Homes Act caps the annual increase in assessed value of a homestead property to 3% or the change in the Consumer Price Index, whichever is less. This reduction is applied after the homestead exemption is deducted from the property’s assessed value.
Property taxation, as a key component of real estate ownership in Florida, has followed a unique trajectory tailored to the state’s needs. The Florida Property Tax system encompasses a wide range of factors, including tax rates, payment obligations, and overarching governing bodies, each playing a crucial role. Notably, Florida’s Property Tax limitations emerge as pivotal elements, acting as checks and balances to prevent undue tax burdens on property owners. Beyond these constraints, a myriad of tax exemptions, reductions and credits present untapped opportunities for property owners to mitigate their tax liabilities. However, these tax limits also significantly shape the fiscal landscape of local governments, directly influencing Florida’s community services and infrastructure.
