Florida Realtors Remind Residents to File for Homestead Exemption, Property Tax Portability

ORLANDO, Fla., Feb. 27 /PRNewswire/ -- Do you live in a home you bought in 2007? Then you'll want to apply for a $50,000 ($25,000 for homes worth $50,000 or less) homestead exemption by March 3, 2008. And for the first time this year, it's also important to apply for property tax portability for homestead owners who bought and sold a Florida home in 2007.

The annual deadline to apply for homestead exemption is generally March 1, but since it falls on a Saturday this year, residents can apply until the close of the next full business day - which is Monday, March 3, 2008.

The Florida Association of Realtors(R) (FAR), which represents 150,000 Realtors statewide, reports that any Florida property owner with legal title to a home and who used it as his or her permanent, primary residence on Jan. 1, 2008, is homesteaded and eligible for the exemption. But you have to apply. And exactly what is the homestead exemption? It is, at a minimum, a $25,000 deduction from a home's assessed value as determined by the county property appraiser. Take the home's assessed value, subtract $25,000, and apply the local millage rate to calculate the property taxes due.

New this year: An increased homestead exemption of an additional $25,000 will be applied to homes worth at least $75,000, though the second $25,000 exemption does not include school tax deductions. Homes valued at $50,000 or less will receive a $25,000 exemption. Homes valued from $50,000 to $75,000 received a prorated deduction beyond the initial $25,000. There is no separate application for this new and additional exemption, and new homeowners who apply for the traditional homestead exemption before March 1 will automatically receive the savings. The same is true for long-time homeowners. They will receive the additional homestead exemption automatically if their home has an automatic homestead status renewal. No action is necessary.

Save Our Homes portability: Taxpayers who sold a homestead in 2007 and purchased a new home before Jan. 1, 2008, are also eligible to apply some, or all, of their Save Our Homes property tax benefits to the new home. The Save Our Homes benefit is the difference between the old homestead's assessed value and market value, resulting from the state's annual cap on property tax assessment increases (the Save Our Homes constitutional amendment). A different calculation is used for homeowners who downsize to a home worth less than their sold property.

Portability is not automatic. Taxpayers who previously applied for a 2008 homestead exemption on their new home must complete a separate application to transfer the Save Our Homes benefit to the new homestead by this year's March deadline. Application forms for portability are available from a local property appraiser or the Florida Department of Revenue Web site at http://dor.myflorida.com/dor.

Homeowners making their first claim should contact their respective county property appraiser's office to find out how to file - many offices offer applications online or will mail applications to residents. Homeowners may also file for a homestead exemption in person, bringing along the deed to their property or a property tax bill - something to prove they own the home. Also, buyers claiming the exemption for the first time need to provide their Social Security number, and if they're married, the Social Security number of their spouse. According to officials, those applying should also bring their Florida driver's license and a Florida registration tag number. If the property owner lives in a mobile home, then he or she should bring the deed, Social Security number, and a title or vehicle registration for the home.

Once a homeowner has applied for and received a homestead exemption, it will be automatically renewed for that property each year on Jan. 1. Renewal notices are mailed out identifying the property, and if the owners still live in the home and qualify for the homestead exemption, it's taken care of automatically. For more specific information about homestead exemption or property tax portability, call your local county property appraiser's office.

The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 150,000 members in 67 boards/associations. FAR's media releases can be found at http://media.floridarealtors.org/.