Depending on circumstances, many people give up their homestead exemption in the state they're coming from and become residents of Florida. The homestead exemption in Florida is 50K but the real benefit of homesteading in Florida is that the assessed value can't be raised more than 3% per year vs. 10% per year for nonhomesteaded properties.
We own a condo in South Florida. Here's how Palm Beach Co. set the taxable value for 2008: In 2007 the market value was 216280, assessed value was 138538. Market value in 2008 was 164400, a decline of almost 52,000 due to market conditions but the assessed value increased 3% to 142694. Homestead exemption was $50000, leaving a taxable value of $92694. Some people in the same building are paying $900+/- per year in property tax, while others are paying around $4000 per year for the same type of unit. It depends on the year they bought, whether or not they homesteaded, and how badly the county wants revenue.
Just something to consider.
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