Homestead Tax
 

Getting ready to take the plunge and become a Villager. I have questions about the Homestead Tax.
How does it effect us as owners in TV?
Is the tax amount the same as quoted by the sales staff or will I be in for any unexpected surprises?
When does it take effect?
And do we have to do any thing special to be granted the tax break?

Not sure what you mean by a homestead tax. There is a homestead exemption. Go here to learn more. http://www.sumterpa.com/ Click on exemptions.

WE too just moved here..... $50,000 exemption thru using the "Homestead Exemption" and making this our permanent residence!!

If your Florida home is your permanent residence, then you are entitled to a $50,000 Homestead property tax exemption. Property taxes are based on the purchase price of the home. For example, if your home purchase price is $200,000, then you will be taxed on $150,000 (divided by 1,000 times mill rate = yearly tax). You do have to apply in person at the County Property Tax Appraiser's Office between Jan 1 and March 1 of the year for which the exemption is sought. You must show a Florida driver's license and have registered your car in Florida. Renewal is automatic each year unless you have made a change.
The Villages is in 3 counties and each county has its own mill rate. I believe Sumter is the lowest, followed by Lake then Marion counties.
Ask you realtor if he/she quoted taxes based on Homestead.
Hope this helps.

For you veterans with a service connected disability........you are also entitled to a tax credit along with the homestead.

Go to this location to check out various exemptions you may be eligible for:
http://www.sumterpa.com/Exemptions.asp

Of note: Only $25,000 of the $50,000 exemption mentioned above applies to school taxes - the biggest item on your tax bill.

Taxes are not based on the purchase price of the home, they are based on the county appraiser's assessed value and total taxable value of the home. This varies and changes if you make additions to your home or if property values change. For example, a home I bought in TV years ago for $270,800 has a taxable value of $210,211 for tax year 2009. In 2008 the taxable value was $213,719. Another home I bought here for $188,800 was given a taxable value of $160,982 the first year I got a tax bill. (This was after I added to the house and the tax appraiser came to the house and added value for the changes.)

I was quoting from both the real estate agent I used when buying my resale and also from Lyle Gant's FAQs. I also just called the Tax Appraisor's office to make sure of my facts and was told YES, when you first purchase a home, property taxes for that year are based on the purchase price of the home.

I think Peazoup is correct on this one. It is my understanding that taxes are initially based on the purchase price of the home!

I agree that they may be "based" on the purchase price but you are not taxed on the purchase price, you are taxed on the assessed value less exemptions. They must have some formula that figures the assessed value "based" on purchase price. If you have exemptions they are deducted to arrive at your "taxable value".

The following examples are from Sumter County.

I'll use an example I have first hand knowledge of on a resale: Purchased last year for $269,000. Assessed value that they paid taxes on: $219,337.

Here's another example of a house at random right off of the County Property Appraiser's web site:

House bought new in Jan 2006 - $262,500

2006 taxes were based on an assessed value of $210,191

Same house re-sold in April 2007 for $305,000.

2007 taxes were based on an assessed value of $215,445

2008 taxes were based on an assessed value of $218,034

2009 taxes were based on an assessed value of $212,466 In this example the owners claimed the homestead exemption and the taxable value of the property was $162,466, except for the school taxes which were based on a taxable value of $187,466.

I did another at random just to make sure I wasn't missing some portability issue or something else. Home bought new in 2005 for $240,000. Sold in Jan 2008 for $287,500. First years assessed value after re-sale: $181,281. If they had believed they would be paying taxes on the $287,500 sales price I bet they were happy when they got the tax bill.

Surprise at closing
 

My experience is that BogeyBoy is right about the assessed value being the basis for taxes. My real estate agent told me it was based on the purchase price of the home and I would continue to get the previous owner's exemption for 2011. Neither of these statements turned out to be correct. I called the tax appraiser's office and was told that for the remainder of 2011 I would not get the exemption, that the tax was based on tax appraiser's assessment, and that I had to be full time resident on January of the tax year, so the earliest I can get the exemption is 2012, and you have until March of 2012 to apply. This is for Marion County