Orlando Real Estate Voice

As you may know, the January 29^th 2008 Presidential Primary election Voters said ‘Yes on 1’ Property Tax Amendment 1,  Which lowers property taxes statewide. The property tax amendment  allows buyers to take their Save Our Homes tax savings with them when they move. One of these changes allows homestead property owners to transfer up to $500,000 of their Save-Our-Homes benefits to their next homestead. What is Portability?

• Portability

            The ability to transfer the benefit of the homestead property assessment limitation (defined in FS 193.155) described as the dollar value difference between market value and assessed value, or a percentage thereof, from an existing homestead to a newly homesteaded property.               MARKET VALUE(MINUS) ASSESSED VALUE               =   PORTABLE AMOUNT You can visit my Website at JerrySellsOrlando.com to view what it means to you. Click on: Property Tax Amendment. You can also use the Portability Calculator to determine your current Save-Our-Homes portability dollar amount, how the dollar amount is transferred to a new homestead, and the estimated tax dollar savings that may occur. I also have a link to the: Orange County Property Appraiser Homestead Portability Calculator.Call Jerry for your Real Estate Needs 407-580-7011, JerrySellsOrlando.com    

TALLAHASSEE, Fla. – Jan. 30, 2008 –Realtors around the state expect buyers and sellers’ pent up demand to generate an immediate increase in home sales following passage yesterday of Amendment 1, which allows buyers to take their Save Our Homes tax savings with them when they move.

“People who buy now are getting a great deal because home prices have fallen,” says 2007 FAR President and St. Petersburg Realtor Nancy Riley, who led the charge last year in support of Amendment 1. “These price reductions, combined with portability, will mean a great deal on the taxes owed on their new home.”

Some Realtors expect to see sales activity from first-time buyers thanks to a slight increase in the homestead exemption provided by Amendment 1, record-low mortgage rates, pent-up demand and a large selection of properties.

“Again, given the lower cost of housing and the increased homestead exemption, those who have been dreaming of buying their first home will find this the best market in many years,” Riley adds.

While demand builds, Realtors should take the opportunity to contact clients who sold a home in 2007 and bought another property that qualifies as a homestead. The portability provision of Amendment 1 is retroactive to Jan. 1, 2007. Sellers may transfer their Save Our Homes credit (the difference between the assessed value of a homestead and the market [or “just”] value) provided:

1. The residence sold last year was homesteaded;
2. The new residence qualified for the homestead exemption as of Jan. 1, 2008;
3. The owner applies for the exemption and transfer with the county property appraiser by March 1, 2008.

For specific questions about property tax reform, tell clients to contact their local property appraiser. [http://dor.myflorida.com/dor/property/appraisers.html]

© 2008 FLORIDA ASSOCIATION OF REALTORS®