MY NEIGHBOR’S HOME IS SIMILAR TO MINE –
BUT MY TAXES ARE SO MUCH HIGHER!

“I don’t understand!  My neighbor and I own the same model home, both were built the same year, and our lots are the same size.   My neighbor bought their home five years ago and I just purchased my home last year.  My estimated tax bill for this year is $3,320 but the neighbor’s estimated taxes are only $2,250.  This must be a mistake, something has to be wrong!”

My Home


 

My Neighbor’s Home

              Built:
      Lot/Model:  
       Purchased:   
             Taxes:  

Same Year
Same
Last Year
$4,810		                Built:
       Lot/Model: 
      Purchased:
              Taxes: 

Same Year
Same
5 Years ago
$3,230

WHY?

  • “Save Our Homes” causes disparity and confusion….Overwhelmingly adopted by Florida voters in 1992; this initiative was intended to prevent homeowners from being taxed out of their homes due to rapidly rising real estate values.
  • The Save Our Homes “cap” limits increases in assessed value of homestead properties to no more than 3% annually – regardless of the increase in market value.
  • New construction and additions are not subject to the 3% “cap”.
  • The “cap” favors owners who reside in their property for many years – the longer you live in the same home, the more you will save.
  • In 2006, the average Seminole County homeowner, with a homestead exemption, saved nearly $1,580 in taxes due to the Save Our Homes cap and an additional $463 in tax savings from the $25,000 Homestead Exemption.
  • If you purchased your home last year and obtained your homestead exemption January 1, 2006, your new assessed value is based upon your sales price and recent sales of comparable properties.  Therefore, the “Market Value” and “Assessed Value” for your property will be identical this year. (Next year, you’ll likely see the market value climbing at a rate much higher than your assessed value).
  • Your taxes will never drop to the level of your neighbor’s taxes due to Save Our Homes – unless they sell – and if that occurs, the new owner will pay more taxes than you.  The “cap” is not transferable to another property and is only for homestead properties.
  • Please note that changes in title (or new construction or additions) may affect the “cap” so please contact our office prior to changes so we may discuss your options.

Update:  A number of initiatives are underway in the 2007 Florida Legislature affecting your property taxes and exemptions and you will have an opportunity to vote on those changes prior to their being put into place.  As those changes occur, we will keep you informed.