Quote:
Originally Posted by ALadysMom
Yikes! So what happens to the assessed value when the houses are sold?
Does the FL residents’ assessed value suddenly jump up to current market value when the sale is recorded?
I’m sure the home with an out of state owner would not have a reduction in their assessed value even if it is sold to a FL resident.
Does the disparity in assessed value remain forever?
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The Save Our Homes Act (SOH) only permits the assessed value of homes of Florida residents to increase per year a maximum of the Consumer Price Index increase or 3% whichever is less. So over time, the disparity in assessed values (and property taxes!) between the homes of Florida residents and out-of-state residents has, and will continue, to get worse; this is especially true when the property assessor doesn't increase the market value of houses each year as prices go up, but rather combines it all into a huge increase in market value in just one year like the 15% market value increase last year by Sumter County.
If a Florida resident sells his house to an out-of-state resident, the assessed value of the house will immediately rise to the market value for the new owner. Even if the out-of-state resident later becomes a Florida resident, he is out of luck; he will never get his house down to the assessed value that the seller had.
If the homeowner (doesn't matter whether or not he is a Florida resident) sells the house to a Florida resident, the Florida resident can transfer the SOH benefit from his old house to reduce the assessed value of the house he just purchased.
Unlike most states, the Save Our Homes Act is a great way for Florida to stick it to out-of-state homeowners in order to keep taxes down for residents and to insure that non-residents pay an increasingly disproportionate share of property taxes as home values rise over time.