2018 Taxable Values Estimate and Homestead Exemptions for Broward County, Florida

For those of you who live in Broward County, Florida, this could be very valuable and helpful information.  Below is an informative newsletter originally published by Marty Kiar of the Broward County Property Appraiser’s (BCPA’s) office.

2018 Estimate of Taxable Values

The preliminary 2018 property values will be posted on BCPA’s website at www.bcpa.net on June 1. This will be your first opportunity to review your 2018 property value and contact our office if you believe the just value to be inaccurate. This is important because the amount of property taxes that you will be asked to pay is based on the relationship between the tax rates set by your local taxing authorities and the assessed value of your property as determined by our office. Florida law requires our market values be one year in arrears meaning we use the qualified sales of comparable properties from January 1, 2018 back through January 2, 2017 for the 2018 property values. If you purchased your property in 2018, your 2018 purchase price will be used in setting your property’s 2019 market value. For questions regarding your residential property, please call 954-357-6831. BCPA will be mailing the 2018 TRIM (proposed tax) Notices to all Broward property owners in mid-August. This notice will show your property’s 2018 market value, assessed value, exemptions and proposed tax rates as set by the various taxing authorities.

Did You Have Homestead Exemption on One Home and Purchase Another?

If you had Homestead Exemption on a property in 2016 or 2017 and have purchased a new permanent residence in Florida, please make sure you have applied for both Homestead Exemption and Portability at your new residence. Portability allows you to transfer the “Save Our Homes” savings you built up by having Homestead Exemption on any Florida property to another Homesteaded property in Florida. To transfer the Save Our Homes benefit, you must establish a Homestead Exemption at the new home within two years of January 1 of the year you sold or moved from the old homestead (not two years of the sale or move date). Note: a Portability application transfers the savings you have earned, but it does not automatically transfer your Homestead Exemption. You must apply for both Homestead Exemption on your new home and complete a Portability application. The Portability application can be found on our website at www.bcpa.net/Forms/DR501T2009.pdf For questions regarding Homestead Exemption, Portability or any of the available tax-saving exemptions, please call our Customer Service representatives at 954-357-6830.

Meet the Broward County Mobile Exemption & Information Team

The Broward County Property Appraiser’s Office has a group of representatives visiting homeowner and community groups around Broward County to educate property owners about the role of our office and provide important tax-saving information. To find out when BCPA will be assisting residents and property owners in your community, simply visit their event calendar online at www.bcpa.net/Events.asp If you would like a representative to attend one of your meetings or events, please contact Michael Clark, Mobile Exemption & Information Team (MEIT) Manager, at 954-357-6905 or mclark@bcpa.net

Khani & Auerbach is committed to educating the public about various topics in real estate.  For more information, or if you have any real estate transaction needs, please do not hesitate to contact us.

Florida Homestead Exemption Filing Deadline is March 1st

Florida Homestead Exemption Filing Deadline is March 1st

All legal Florida residents are eligible for a Florida Homestead Exemption on their homes, condominiums, co-op apartments, and certain mobile home lots if they qualify. The Florida Constitution provides this tax-saving exemption on the first and third $25,000 of the assessed value of an owner/occupied residence. While a complicated formula is used to explain this — as the additional $25,000 only applies to the non-schools portion of your tax bill — for example, a Broward County homeowner can save anywhere from $627.99 to $1,053.22 (depending upon your city’s millage rate) in annual tax savings for all homes with a value of $75,000 or higher.

You are entitled to a Homestead Exemption if, as of January 1st, you have made the property your permanent home or the permanent home of a person who is legally or naturally dependent on you. By law, January 1 of each year is the date on which permanent residence is determined.

Most counties provide for ONLINE filing. See below for a few links in the tri-county area.

The timely filing period for Florida Homestead Exemption for 2017 is March 2, 2016 through March 1, 2017. The absolute deadline to LATE FILE for any 2017 exemption — if you miss the March 1 timely filing deadline — is September 18, 2017. State law (Sec. 196.011(8), Fla. Stat.) does not allow late filing for exemptions after this date, regardless of any good cause reason for missing the late filing deadline.

What You Need When Filing for Homestead

When filing an application you must bring the following items listed below. To claim 100% coverage, all owners occupying the property as Tenants in Common (i.e., proportional share co-owners) must file in person on jointly held property. In the case of a married couple (“Tenants by the Entirety”) or Joint Tenants with Right of Survivorship (“JTRS”), any one owner may qualify for 100% coverage — although it is always highly advisable to have all eligible owner-occupants to file.

Proof of Ownership: In general, the recorded Deed or Co-op Proprietary Lease must be held in the name(s) of the individuals applying for Homestead. You do not need to bring a copy of the deed or co-op lease if the document has already been recorded in the Official Records of Broward County. If the PROPERTY IS HELD IN A TRUST, WE ALSO NEED EITHER A NOTARIZED CERTIFICATE OF TRUST OR A COMPLETE COPY OF THE TRUST AGREEMENT. Note: Most taxpayers prefer to use the simple Certificate of Trust form, instead of submitting the entire trust for our review, as it better protects the privacy of your estate planning and other financial matters.

Proof of Permanent Florida Residence — preferably dated prior to January 1 of the tax year for which you are filing — is established in the form of:

FOR ALL APPLICANTS: Florida’s Driver’s License (or — for non-drivers only — a Florida I.D. Card) is REQUIRED. Note: You must surrender to DMV any out-of-state regular driver’s license. You MUST also have either of the following:

Florida Voter’s Registration; or
Recorded Declaration of Domicile.

FOR NON-US CITIZENS, you MUST have the items listed above AND proof of permanent residency, asylum/parolee status (or other “PRUCOL” status); OR proof you are the parent of a US-born (US Citizen) minor child who resides with you.

If you or your married spouse have a Homestead Exemption in any other county, state or country (or an equivalent permanent residency-based exemption or tax credit, such as New York’s “S.T.A.R.” exemption) on another property you also currently own, you will NOT be eligible for a homestead in both counties until after you surrender the exemption in that other jurisdiction. Read filing in two counties for additional information on the detriments of filing in two counties.

The State-approved application form requests certain information for all owners living on the premises and filing:

Current employers of all owners
Addresses listed on last I.R.S. income tax returns.
Date of each owner’s permanent Florida residence.
Date of occupancy for each property owner.
Social Security numbers of all owners filing.
Social Security number of any married spouse of the applicant, even if the spouse is not named in the deed and is not filing).

Note: The amount of the Florida homestead exemption protection granted to an owner residing on a particular property is to be applied against the amount of that person’s interest in the property. This provision is limited in that the proportional amount of the homestead exemption allowed any person shall not exceed the proportionate assessed valuation based on the interest owned by the person. For example, assuming a property valued at $40,000, with the residing owner’s interest in the property being $20,000, then $20,000 of the homestead exemption is all that can be applied to that property. If there are multiple owners, all as joint tenants with rights of survivorship, the owner living at property filing receives the full exemption.

Click on the County that your real estate is located in to file online.
Broward County
Miami-Dade County
Palm Beach County

One Family Cannot Claim Homestead Exemption in Two States

real estate, real estate closings, real estate transactions

by Khila L. Khani, Esq.

On March 23, 2016, the Fourth DCA a/k/a the appeals court of Florida decided in VENICE L. ENDSLEY, Appellant, v. BROWARD COUNTY, FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT, REVENUE COLLECTIONS DIVISION; LORI PARRISH, as Broward County Property Appraiser, et al., Appellees. 4th District. in Case No. 4D14-3997 that Article VII, Section 6(b) of the Florida Constitution does apply if a homeowner has a second exemption property in another state, however, it is NOT unconstitutional to deny a spouse her exemption if the other spouse sought exemption in another state.  What does that mean for you, the property owner of two homes in two different states?

Let’s rewind a bit and explain how the Florida Homestead Exemption works.  The State of Florida, via the Florida Constitution, exempts a portion of a Florida homestead from ad valorem tax. This exemption can potentially save taxpayers a few hundred dollars each year. The economic value for homeowners is that such an exemption, under Florida’s Save our Homes provision, caps the ad valorem tax value increases to 3% per year, despite the fact that the value of the residence may increase by more than 3%.

In the case cited above, a husband owned a residence in Indiana. On the property in Indiana, he received a residency-based property tax exemption, somewhat similar to the tax exemption provided by the Florida Constitution. His wife, however, owned a Florida property that she claimed as her residence and received a Florida homestead ad valorem tax exemption. In August 2006, the Broward County Property Appraiser did their homework and revealed that husband and wife were double dipping with the dual exemption filings.  The Broward County Property Appraiser audited the exemption with support from Article VII, Section 6(b) of the Florida Constitution, which reads in part that “[n]ot more than one exemption shall be allowed any individual or family unit or with respect to any residential unit.” Based on that provision, the Appraiser’s office sought to remove the homestead exemption from the couple’s Florida property, even though the property was held in the wife’s name alone, for 1996 through 2006 – this would remove the cap on the value for ad valorem tax purposes and thus, remove the 3% Save our Homes protection.

As mentioned above, the appeals court reviewed the lower court’s decision and decided that the Constitution provision applies if the second exemption property is in another state.  Furthermore, the appeals court decided that it is NOT unconstitutional to deny the wife her exemption on the Florida property because her husband sought exemption in another state.

Florida homeowners with families, you are now informed, warned and advised that you cannot claim homestead in two different states, even if you are married and have individual ownership of those two different properties. One family cannot claim homestead exemption in two states.

At Khani & Auerbach, it is our goal to educate the public as much as possible about changes in real estate law. Khani & Auerbach is here to help.