Quote:
Originally Posted by jnieman
The taxes are double and they also have a bond?
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Bonds and real estate taxes are not the same. A bond is really the cost of the subdivision's (a Village) infrastructure financed for you by the developer. Florida is only one of a very few states that allow this practice. And in Florida it can be prohibited by a local taxing authority, such as did the City of Lady Lake. Thus, prior to the Fruitland Park development, homes in Lake County never had bonds attached because all of the early Lake County development was within Lady Lake.
Normally infrastructure and development costs are included in the advertised "purchase price". The bond is not a tax, but rather is just collected in conjunction with the annual tax bill. This scheme was originally introduced years ago by Disney in development of their properties to disguise by $20,000 or $30,000, or more the real purchase price of properties they were selling. The Bond should be considered part of your purchase price when determining the real price commitment you are making. Further, it is not a legitimate income tax deduction, except maybe for the amount of interest included in that year's payment.
In reply to the comment above, the real answer is yes, Lake County taxes are higher than other surrounding counties. Taxes are also influenced by a local city in which the property may exist. I believe most of Marion and Sumter properties exist outside of any significant town, except for Wildwood, Thus for the most part Villages properties do not have to carry the double burden of a local city's bloated tax burden. And now Fruitland Park covers the new Lake County development area. Who knows how those cities will milk the Villages cash cow as time develops.