Help me to understand and predict taxes on a TV home in Sumter County

[Laker14]

DW and I are seriously considering leaving the ranks of the renters and purchasing a home in TV, probably when we are down next winter. We are already committed to renting Dec '20- April '21, so that is probably when we'll do our house hunting

I'm trying to predict what the various property taxes would look like on varying purchase prices. Say, 250K, to 350K.

I've gone on the Sumter Co. tax site, and looked at what properties are "assessed" at, and have a few questions.

Do they assess at what they consider "fair market value", or some percentage of that? If a property last sold 10 years ago, for 100K less than what it's likely to get today, is the assessed value likely to jump a lot with the sale, or have they inched up the assessed value over time, to at least approximate what a new sale might be? In other words, if the house hasn't sold in 10 years, is the latest tax bill likely to be a close approximation to what the new bill would look like?
I don't need to be exact, but I would like to get within a 10% margin with my approximation.

Thanks for helping.

[retiredguy123]

You can see the actual tax bill for every house on the county website. But, generally, when you buy a house, the assessed value may increase, especially if the house has not been sold in a long time. Usually, over time, your tax assessment will increase, but not as much as the market value of the house. So, I would look at the tax bills for houses in the neighborhood where you may want to buy. But, there are no guarantees about what will happen in the future. Note, that Lake County has the highest taxes, followed by Marion and then Sumter. Also, some houses are located in a city where part of the taxes go to the city. These are Wildwood and Fruitland Park, and possibly others. You also need to check the annual maintenance fee and the bond payment, which are also shown on the tax bill. Another factor that affects the tax bill is whether you have a homestead exemption.

[Stu from NYC]

We purchased our home in Sumter in Feb 2020 and when we visited the tax assessors office this is what we were told.
Our home which was 10 years old was assessed when built and the assessment will not change until you sell your home.
Our taxes were based on selling price and will not change as long as we stay in our home.
Very surprised but figure the clerk should know what she was talking about..

[Villageswimmer]

We purchased our home in Sumter in Feb 2020 and when we visited the tax assessors office this is what we were told.
Our home which was 10 years old was assessed when built and the assessment will not change until you sell your home.
Our taxes were based on selling price and will not change as long as we stay in our home.
Very surprised but figure the clerk should know what she was talking about..

Selling price definitely affects your taxes. However, the taxes/assessments do change over time even if the home is not sold again. To prove this, go to the website, select any random property and click on tax history. You’ll see several years of tax bills.

It’s to your advantage to get the lowest possible purchase price. If improvements are built into a higher price (worse yet, a turnkey) you’ll effectively be paying taxes on the add-ons as long as you own the property. This effect is exacerbated if one takes a mortgage; that is, you’re paying interest on furniture, etc.

Better to make improvements yourself than to have those already made improvements included in a higher purchase price which equates to higher taxes.

[Stu from NYC]

Selling price definitely affects your taxes. However, the taxes/assessments do change over time even if the home is not sold again. To prove this, go to the website, select any random property and click on tax history. You’ll see several years of tax bills.

It’s to your advantage to get the lowest possible purchase price. If improvements are built into a higher price (worse yet, a turnkey) you’ll effectively be paying taxes on the add-ons as long as you own the property. This effect is exacerbated if one takes a mortgage; that is, you’re paying interest on furniture, etc.

Better to make improvements yourself than to have those already made improvements included in a higher purchase price which equates to higher taxes.

Thank you will do that

[tophcfa]

Good luck with that. I thought I had it figured out and then they went up 24%

[Topspinmo]

Sumter County probably still lowers taxes in three counties in villages?

[rjm1cc]

I would email the tax assessor and ask how the assessment will change if you buy a 10 year old home that has had homestead protection for assessments.

I think when a new home is assessed it could be a little under what you paid for it as some items, say refrigerator, is not considered real-estate. For estimating I would assume the taxes will be based on what you pay. If you are a full time resident on Jan 1 you can also get a 50,000 reduction to the assessed value so using the sales price will overstate your cost but could be ok for budgeting. Taxes will go up each year.

Once you are a full time resident of the property the annual increase in asses value is protected by the save our home laws. You assessment can increase but at a lower rate than market value. When the home is sold it is brought back up to market assessment.

It is also possible to move the save our home protection from your old Florida home to your new home.

I think the homes are reassessed every year using comptuer programs as opposed to doing an actual appraisal.

[davem4616]

You can see the actual tax bill for every house on the county website. But, generally, when you buy a house, the assessed value may increase, especially if the house has not been sold in a long time. Usually, over time, your tax assessment will increase, but not as much as the market value of the house. So, I would look at the tax bills for houses in the neighborhood where you may want to buy. But, there are no guarantees about what will happen in the future. Note, that Lake County has the highest taxes, followed by Marion and then Sumter. Also, some houses are located in a city where part of the taxes go to the city. These are Wildwood and Fruitland Park, and possibly others. You also need to check the annual maintenance fee and the bond payment, which are also shown on the tax bill. Another factor that affects the tax bill is whether you have a homestead exemption.

all great advice

I believe that it may take a year of being a Floridian and property ownership to qualify for homesteading...you may have an issue if you own another home in another state if you receive a tax break on it due to homesteading on that property

order of magnitude number for you to work with (for a home at the upper level of your range) would be around $4500 for taxes, bond and annual maintenance...(and plan on paying a monthly amenity fee of around $150)..

BTW - I found that Triple A had the best homeowner and auto combo insurance rates a couple of years ago when I shopped around

good luck

[Laker14]

thanks again, folks. Your input is much appreciated, and I'm sure by others as well as by me.

[Stu from NYC]

all great advice

I believe that it may take a year of being a Floridian and property ownership to qualify for homesteading...you may have an issue if you own another home in another state if you receive a tax break on it due to homesteading on that property

order of magnitude number for you to work with (for a home at the upper level of your range) would be around $4500 for taxes, bond and annual maintenance...(and plan on paying a monthly amenity fee of around $150)..

BTW - I found that Triple A had the best homeowner and auto combo insurance rates a couple of years ago when I shopped around

good luck

We moved here in Feb and were told we cannot get the homestead exemption till next January

[Pballer]

If you buy a house from a Florida resident ignore the assessed value and look at the market value. The assessed value for a Florida resident can only increase by the lesser of the consumer price index or 3% per year.

And Sumter County last year raised the market value of a lot of the houses in The Villages by 15% after not raising them for a few years.

[retiredguy123]

We moved here in Feb and were told we cannot get the homestead exemption till next January
The homestead exemption is for the entire year and it is not prorated. You must own the house on January 1 to get the exemption for that year. So, if you bought a house in February, you cannot get the homestead exemption until the following year.

[rustyp]

I sense a baited question once again. The mileage rate is somewhere between $15 - $18 per thousand in any of the counties. On a $300K house that's $4500 - $5400. That is one small portion of what it cost to live here. It's like buying a big boat. If you can afford the boat it really does not matter what price of gas is compared to the rest of the expenses.

[Laker14]

I sense a baited question once again. The mileage rate is somewhere between $15 - $18 per thousand in any of the counties. On a $300K house that's $4500 - $5400. That is one small portion of what it cost to live here. It's like buying a big boat. If you can afford the boat it really does not matter what price of gas is compared to the rest of the expenses.

not sure if you are referring to my original post as a "baited question" or some response to my post. Nothing baited in my question at all. I have been familiar with TV for close to 15 years, since my friends bought a place. I am familiar with just about all of the various expenses associated with owning a house in TV, and am trying to pin down with some reasonable accuracy, how much taxes would be. It's not an easy thing to pin down. The realtor listings tell you what the taxes are, but not what they will be after you pay the listed price. With lagging re-assessments, and homestead exemptions which I will likely not be eligible for in the early going, and the recent "all at once" re-assessment, what is listed in the RE listing is not a very useful piece of information.

so, once again, thanks to everyone for the useful information.

[Laker14]

The homestead exemption only applies to the ad valorem portion of the tax bill, correct? And as the ad valorem portion is further broken down into Sumter County, School Tax and SWFWMD, the school tax portion only gets a 25K reduction, whereas the other two items get the 50K reduction from assessed value to taxable assessed value, right?

[Mleeja]

It was mentioned as a “throw-a-way” statement above, but if you are buying a house turnkey or with a golf cart, negotiate separate deals for the house and the other items. Pay for them separately! You do not want the assessment based on the additional furniture or golf cart.

[Laker14]

It was mentioned as a “throw-a-way” statement above, but if you are buying a house turnkey or with a golf cart, negotiate separate deals for the house and the other items. Pay for them separately! You do not want the assessment based on the additional furniture or golf cart.

yeah, I caught that. good advice, and I'll take it if it applies, thanks.

[VApeople]

Our taxes are about 1% of the value of our house.

This does not include a payment for the bond.

[Kim Fowler]

The homestead exemption is for the entire year and it is not prorated. You must own the house on January 1 to get the exemption for that year. So, if you bought a house in February, you cannot get the homestead exemption until the following year.
And in our case, we moved into our house in early December, immediately became Florida residents (driver’s license) and qualified for the homestead exemption by January. That exemption applied to taxes due the following fall. Also, remember, in some cases, property taxes are deductible from your income for federal tax purposes.

[biker1]

Not exactly. It was $12.4 in Sumter for 2019.

I sense a baited question once again. The mileage rate is somewhere between $15 - $18 per thousand in any of the counties. On a $300K house that's $4500 - $5400. That is one small portion of what it cost to live here. It's like buying a big boat. If you can afford the boat it really does not matter what price of gas is compared to the rest of the expenses.

[noslices1]

Yes they did go up, but mine only went up a couple of hundred dollars. Sumter had not had a tax hike for several years.

[Annie66]

We moved here in Feb and were told we cannot get the homestead exemption till next January

Interesting ….. we bought 4 years ago, and received the Homestead Exemption immediately. Possible the county made a mistake in not requiring us to wait. We were happy campers because of it.

[Gunny2403]

How do I get property information for County Property Taxes?

[biker1]

The County GIS service is a good place to start.

GIS | Sumter County, FL - Official Website (https://sumtercountyfl.gov/105/GIS)


How do I get property information for County Property Taxes?

[ladyarwen3]

all great advice

I believe that it may take a year of being a Floridian and property ownership to qualify for homesteading...you may have an issue if you own another home in another state if you receive a tax break on it due to homesteading on that property

order of magnitude number for you to work with (for a home at the upper level of your range) would be around $4500 for taxes, bond and annual maintenance...(and plan on paying a monthly amenity fee of around $150)..

BTW - I found that Triple A had the best homeowner and auto combo insurance rates a couple of years ago when I shopped around

good luck

"I believe that it may take a year of being a Floridian and property ownership to qualify for homesteading."
We applied for and received homestead exemption / discount from the minute we got here. We purchased late June, moved in permanently in October. Changed our drivers licenses and vehicle registration that first week, then walked across the hall to the tax office, where we applied for homestead exemption. We were told it was in effect already because of the questions answered during the closing process.

[sterlingcnslts]

Just correcting a common misconception about the 3% maximum raise. That does not apply the 2nd year of increase. the 2nd year raise uses the average selling price for homes like yours for that 2nd year. Our 2nd year increase was almost 15% from $2500 to $2947

[Keninches]

How do I get property information for County Property Taxes?

Check out Sumterpa.com The taxes are not consistent anywhere in The Villages.

[FredJacobs]

I bought my house in Sumter in 2012. The first year, I paid taxes at the market value which was the selling price. After that first year, the market value came down slowly to reflect reality.

For an estimate, take the selling price in thousands, deduct about 75 for the homestead and multiply by 12.5 (Sumter County tax rate. A 350,000 home = 350 minus 75 times 12.5 = $3,437.50. This does not include other taxes and fees such as Fire Department, Bond (if any), etc.

Your realtor will know the exact current rate on any house he/she shows you.

[Davelinda91]

It’s a good question however you won’t get a straight answer until the closing. If your asking you probably will find it expensive. A $350K home in the Marsh Bend area is about $7K in taxes with county, city and bond. Plus monthly amenities

[pdp07]

Selling price definitely affects your taxes. However, the taxes/assessments do change over time even if the home is not sold again. To prove this, go to the website, select any random property and click on tax history. You’ll see several years of tax bills.

It’s to your advantage to get the lowest possible purchase price. If improvements are built into a higher price (worse yet, a turnkey) you’ll effectively be paying taxes on the add-ons as long as you own the property. This effect is exacerbated if one takes a mortgage; that is, you’re paying interest on furniture, etc.

Better to make improvements yourself than to have those already made improvements included in a higher purchase price which equates to higher taxes.

Not True...Turnkey items are personal property and can be deducted from the Real Estate sales price to keep property taxes accurate.

[Juliebythesea]

Taxes will be approximately 2% of the sale price less any homestead credit usually about $50,000 if the home you purchase is primary residence

[ValSetz]

Thought it was illegal to include furniture within mortgage?

[charlieo1126@gmail.com]

It was mentioned as a “throw-a-way” statement above, but if you are buying a house turnkey or with a golf cart, negotiate separate deals for the house and the other items. Pay for them separately! You do not want the assessment based on the additional furniture or golf cart. I guess I’m pretty stupid I never asked what the taxes would be until someone mentioned it at closing

[tophcfa]

Thought it was illegal to include furniture within mortgage?

Depends on what the home is appraised at verses the
mortgage amount. Bottom line, for a traditional mortgage, if the mortgage is for 80% or less of the appraised value, the lender won’t care. Very few lenders actually keep home mortgages on their books, they sell them and the mortgages end up as collateral in mortgage backed securities. All lenders care about is that the mortgage meets the underwriting requirements that allows it to be sold in the secondary market.

[44Apple]

I've been trying to figure out this assessment deal. Did Sumter Co reassess everyone in 2019? I bought in 2015, the assessment stayed stable for four years, then jumped in 2019. A higher assessment and a big tax rate increase was a double whammy for me. I'm thinking this is not news to anyone out there.

[THUNDERCHIEF]

dw and i are seriously considering leaving the ranks of the renters and purchasing a home in tv, probably when we are down next winter. We are already committed to renting dec '20- april '21, so that is probably when we'll do our house hunting

i'm trying to predict what the various property taxes would look like on varying purchase prices. Say, 250k, to 350k.

I've gone on the sumter co. Tax site, and looked at what properties are "assessed" at, and have a few questions.

Do they assess at what they consider "fair market value", or some percentage of that? If a property last sold 10 years ago, for 100k less than what it's likely to get today, is the assessed value likely to jump a lot with the sale, or have they inched up the assessed value over time, to at least approximate what a new sale might be? In other words, if the house hasn't sold in 10 years, is the latest tax bill likely to be a close approximation to what the new bill would look like?
I don't need to be exact, but i would like to get within a 10% margin with my approximation.

Thanks for helping. you know that waiting will cost you a few thousand dollars. Village homes go up around $ 5,000 or more per year

[VApeople]

Our taxes are about 1% of the value of our house.


I forgot to add that we are in Sumter county but not in a city like Fruitland Park or Wildwood. I have heard the taxes are significantly higher for a house in those jurisdictions.

In TV, Pine Hills and Pine Ridge are in Fruitland Park. In the Southern area, I think some of the neighborhoods may be in Wildwood.

[Laker14]

you know that waiting will cost you a few thousand dollars. Village homes go up around $ 5,000 or more per year

except when they don't.

[Carol Nichols]

Sumter County didn't raise taxes for years. Last year 24% + other assessment increases went into effect.. Beware the raise in taxes was hinted to be first of 5 years. Also tax bill has bond and maintenance fees to consider. Besides homestead, look to see if you qualify for other tax credits like military, low income irs tax form total may be arranged depending on deductions. Check out other property tax credits. Also, as someone suggested, buy furniture. appliances, golf cart, anything else as a separate sale with cuurent owner and keep it off "house" sale price and mortgage loan.