Unit 18 - Taxes Affecting Real Estate
Disabled Veterans. A permanent, total disability caused by a service related event entitles such individual to
a 100% exemption from taxes on homestead property
Certiorari proceeding means
a court will review the matter
Lenders are well aware of the dangers of
a homeowner not paying taxes, so a majority of lenders escrow taxes into the house payment
For the property owners who are Florida residents and have qualified for homestead exemption, the property is subject to
a limitation in assessment increases, commonly known as Amendment 10
The Value Adjustment Board is
a local group made up of 3 county commissioners and 2 local school board members, all elected members
If the Value Adjustment Board group agrees with the homeowner who has filed an appeal regarding the assessed value of his property, the board can
change the assessed value, but if the board agrees with the county appraiser, the board rejects the homeowner's request
One $500 homestead exemption include
completely disabled persons who are non-veterans
With regard to the Green Belt law, If additions or improvements are made to the property, these changes will be assessed at market value in the year of
construction . The additional value will be capped the following tax year
One $500 homestead exemption include
disabled
With regards to establishing the Tax Rate, an operating budget is prepared each year by
each tax district
The Green Belt Law taxes agricultural land at a lower rate than the
encroaching cities around the land, and preserves the land for future agricultural use
A tax certificate will expire after 7 years if the certificate holder does not foreclose by that time the property
escheats to the state
Gardens and lawns do not fall under the category of
farm lands for agricultural use
If the Value Adjustment Board and county appraiser have both rejected an appeal of a homeowner's request to lower the property taxes, the homeowner may
file a suit in the courts after he pays taxes under protest
Local governments, cities and counties, depend on real estate taxes to pay is for
fire
Tax certificates, which are not redeemed by their original owner, the owner of the property, by the end of the second year, can be
foreclosed at the request of the certificate holder, which is the bidder
With regard to Federal Income Taxes, the sale of real estate may result in capital gains taxes under certain circumstances. To determine if
gain is taxable, three items must apply
As in any foreclosure, A tax certificate property is sold on the courthouse steps to the
highest bidder and the certificate holder is paid out of the sale
With regard to the Green Belt law, Amendment 10 applies only to property with a
homestead exemption
Disabled Veterans. A disability of 10% or more entitles such veteran to an additional $5,000 worth of exemption. A permanent, total disability caused by a service related event entitles such individual to a 100% exemption from taxes on
homestead property
A list of delinquent real estate taxes is published
in a local paper
A source of local revenue include
income tax
With regards to establishing the Tax Rate, the amount of money needed in the taxing district is determined and the sources of the income are evaluated. Once this is done, the tax district is able to
predict what will be needed in tax money to offset expenses
A homestead exemption may be applied to the
primary residence
Occasionally, a homeowner defaults on the taxes of a property. This is more likely to happen when there is no loan or the loan does not have
principal, interest, taxes, and insurance
P I T I stands for
principal, interest, taxes, and insurance
Without the protection from the Green Belt law, owning farm land and paying taxes would be
prohibitive
When a property is sold, representatives of the property appraiser's also examine
properties that have recently sold to collect data
A source of local revenue include
public utility
With regard to the Green Belt law, all county appraisers must annually classify all property within the county. This stops speculators from
purchasing farm land and paying taxes at a lower rate
If a property owner that is appealing his assessed value of property taxes makes it into court after all other procedure attempts have failed, if the court finds for the homeowner, it will direct the county appraiser to
re-examine the value with the appropriate methods of value
An ad valorem tax is a tax based on the value of
real estate or personal property
The Federal government does not tax
real estate, neither does the state of Florida
With regard to the Green Belt law, Amendment 10 is limited to
residential property only
A source of local revenue include
sales tax
A source of local revenue includes
sales tax, income tax, public utility taxes, and user taxes
The additional $25,000 of possible homestead exemption, does not apply to
school taxes
One requirement for the Green Belt protection is
size, as it relates to specific agricultural use
With regard to the Green Belt law, In 1994, Florida Statutes were amended with amendment 10 to provide
some security for homeowners in the amount the assessed value of property could raise each year
The Federal government does not tax real estate, neither does the
state of Florida
One requirement for the Green Belt protection is
such other factors that may from time to time become applicable
Real estate is accessed for
tax purposes by county appraisers
A source of local revenue include
taxes
User taxes are
taxes imposed on the privilege of using something
With regard to the Green Belt law, the limit is on the assessed value of the property, not the
taxes paid. When the property is sold, the homestead exemption must begin again for Amendment 10 to take place
Real property tax is an ad valorem tax based on
the assessed valuation of the property
Just value is
the fair and reasonable value based on objective valuation methods
Revenue is
the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses
One requirement for the Green Belt protection is
the length of time the land has been so utilized
Unpaid taxes become a tax certificate, which is offered to the public for sale at auction with bids opening at 18% and going down. The successful bidder is the one who is willing to accept
the lowest interest rate on the loan. The certificates are held by the bidder for two years before the bidder can begin foreclosure
One requirement for the Green Belt protection is
the purchase price paid
An ad valorem tax, Latin for according to value, is a tax based on
the value of real estate or personal property
Assessed value is
the value that is used for tax purposes
With regard to the Green Belt law, beginning in 1995, or the year the property received homestead exemption, whichever is later, the property is to be reassessed annually on January 1st. Any change resulting from the re-assessment cannot exceed
three percent of the assessed value of the property for the previous year, or the percentage change in the Consumer Price Index for all Urban consumers, as reported by the United States Department of Labor, Bureau of Labor Statistics
With regard to the Green Belt law, beginning in 1995, or the year the property received homestead exemption, whichever is later, the property is to be reassessed annually on January 1st. Any change resulting from the re-assessment cannot exceed
three percent of the assessed value of the property for the previous year, or the percentage change in the Consumer Price Index for all Urban consumers, as reported by the United States Department of Labor, Bureau of Labor Statistics. Whichever of these is lower will be the number the country appraiser must use
A source of local revenue include
user taxes
One requirement for the Green Belt protection is
whether an indicated effort has been made to care sufficiently and adequately for the land in accordance with accepted commercial agricultural practices, including, without limitation, fertilizing, liming, tilling, mowing, reforesting, and other accepted agricultural practices
One requirement for the Green Belt protection is
whether such land is under lease and, if so, the effective length, terms, and conditions of the lease
One requirement for the Green Belt protection is
whether the use has been continuous
One $500 homestead exemption include
widows and widowers, not remarried
Disabled Veterans. A disability of 10% or more entitles such veteran to an additional
$5,000 worth of exemption
The constitution of Florida allows up to _____ for the homeowner's homestead exemption
$50,000
With regard to Federal Income Taxes, the sale of real estate may result in
capital gains taxes under certain circumstances. To determine if gain is taxable, three items must apply
Unpaid taxes become a tax certificate, which is offered to the public for sale at auction with bids opening at
18% and going down. The successful bidder is the one who is willing to accept the lowest interest rate on the loan. The certificates are held by the bidder for two years before the bidder can begin foreclosure
If a homeowner wishes to appeal the assessed value of his property, determined by the local assessor's office, the homeowner should seek an adjustment within _____ days from the county property appraiser, or his representative
25
With regards to limit increases in the assessed value, once a homestead is established and no marital interest is transferred, the homeowner is protected by the
3% annual cap
Save Our Homes limits increases in the assessed value to no more than
3% or the Consumer Price Index, whichever is less
A tax certificate will expire after _____ years if the certificate holder does not foreclose by that time and the property escheats to the state
7
Real estate taxes derived from assessed value are called
Ad Valorem taxes
A homestead property owned by a quadriplegic, and certain other individuals in a wheelchair, is exempt from
certain county taxes
Once an assessed value or a property has been established and the homeowner has been notified, the homeowner has
certain rights of appeal of the assessed value
Permanent Florida residents, even if they do not live in Florida all year are entitled to claim a
Florida Homestead Exemption. The exemption must be filed by March 1st of each year and it is renewed every year thereafter
Florida taxes are due and payable November 1st each year and they are delinquent if not paid by
April 1st of the following year
C P I stands for
Consumer Price Index
With regard to the Green Belt law, if there is a change in ownership, the property must
be re-assessed as of January 1st of the year following a change of ownership. Any new homestead exemption would begin at that time with the above rules taking place after the homestead is granted
One type of real estate property exemption is called
Exempt or Partially Exempt properties. These are properties such as churches and non-profit organizations that own properties. The county appraiser actually determines the Taxable Value of the property but the owners of the property are not required to pay. In other words, the Exempt properties are subject to taxation, but the owner is released from the obligation
In order to preserve Florida's farming community, the legislature in 1959 passed the
Green Belt Law
Example of a Florida Homestead exemption
If a property is assessed at $250,000, it will only be taxed as a $200,000 residence If the homeowner qualifies for the full $50,000 exemption. The homestead exemption amount is actually a base exemption of $25,000, plus as much as an additional 25,000. There is a graduated scale for the second $25,000 based on the value of the property. All owners May Not be entitled to the full $50,000 exemption
One type of real estate property exemption is called
Immune Property. This is property that the county will not be taxing at all, including federal and state buildings, municipal buildings and airports, etc.
No tax exemptions are automatic. They must be applied for in person initially between
January 1st and March 1st. Renewal is subject to county regulations
Florida taxes are due and payable
November 1st each year and they are delinquent if not paid by April 1st of the following year
If a homeowner appeals the assessed value of his property and the appeal has been rejected by the county appraiser, the homeowner may file an appeal with the
Value Adjustment Board , a local group made up of 3 county commissioners and 2 local school board members, all elected members
The words, Ad Valorem, are Latin for
according to valuation
When the reduced valuation is applied to tax rates, the homeowner enjoys a consequent reduction in
ad valorem property taxes
An assessment is
an official valuation of real property for tax purposes based on appraisals by the local assessor's office
When a property is sold, representatives of the property appraiser's office go into the community to
assess property and collect data
If a property has been sold in the previous year, the sale price is considered in
assessing the value of the property
With regards to establishing the Tax Rate, the amount of real estate taxes paid to a tax district comes from
its tax base , all the property that is taxed within the tax district area
Florida Statutes require that property be assessed at
just value
One $500 homestead exemption include
legally blind individuals
Local governments, cities and counties, depend on real estate taxes to pay is for
libraries
Age 65 and older: Certain counties have an ordinance allowed by Florida law, which gives an additional $50,000 exemption to residents who are 65 or older with a household income of Not more than $20,000 . The county has a choice with regard to passing such ordinance and the $20,000 income amount may be adjusted for inflation. This is known as the
local option for age 65 and older
Age 65 and older: Certain counties have an ordinance allowed by Florida law, which gives an additional $50,000 exemption to residents who are 65 or older with a household income of Not more than $20,000. The county has a choice with regard to passing such ordinance and the $20,000 income amount may be adjusted for inflation. This is known as the
local option for age 65 and older
If a property owner that is appealing his assessed value of property taxes makes it into court after all other procedure attempts have failed, if the court finds for the county appraiser, the homeowner
loses his appeal
If a homeowner appeals the assessed value of his property, determined by the local assessor's office, and the appraiser is in the homeowner's favor, the appraiser has the right to
make a change and lower the assessed value
Local governments, cities and counties, depend on real estate taxes to pay is for
municipal buildings
Local governments, cities and counties, depend on real estate taxes to pay is for
parks
The local governments, cities and counties, depend on real estate taxes to
pay for local necessities such as fire and police protection, libraries, parks and municipal buildings
The owner of a property may redeem his property by
paying all taxes, costs and interest to the county within a two year period
Local governments, cities and counties, depend on real estate taxes to pay is for
police protection
