[ton80]

Originally Posted by Bill14564

My home had a taxable value of $361,000 last year. I am in the non-incorporated portion of Sumter County (area with the lowest taxes)

The Homestead Exemption reduced my taxes by $382.

EDIT: I didn't read the question correctly....

My home with exemption: $3,287
If I recalculate without the exemption: $3,669

[B]Homestead Exemption Properties also get Save Our Homes limits on Property Appraisal Increases.[/B]
"In Florida, homes that qualify for the "Save Our Homes" limit on annual property appraisal raises are those that have a homestead exemption. This exemption is granted to the owner who uses the property as their primary residence and has filed for it. The Save Our Homes limit caps the annual increase in the assessed value of homesteaded property to 3% or the Consumer Price Index, whichever is less. "
In my case the savings are substantial. According to Sumter County Property Appraiser, my appraised value is about 58 % of their Market Value estimate. I get the Homestead rebate also.

This is a big benefit since you get good protection each year

[Bill14564]

Originally Posted by ton80

[B]Homestead Exemption Properties also get Save Our Homes limits on Property Appraisal Increases.[/B]
"In Florida, homes that qualify for the "Save Our Homes" limit on annual property appraisal raises are those that have a homestead exemption. This exemption is granted to the owner who uses the property as their primary residence and has filed for it. The Save Our Homes limit caps the annual increase in the assessed value of homesteaded property to 3% or the Consumer Price Index, whichever is less. "
In my case the savings are substantial. According to Sumter County Property Appraiser, my appraised value is about 58 % of their Market Value estimate. I get the Homestead rebate also.

This is a big benefit since you get good protection each year

Yes, the Save Our Homes assessment limitation is also very valuable and saves a lot of money for some people. However, that was not what the OP asked about.

[Ruger2506]

Originally Posted by Pugchief

There is another option?

-----------------

So we mostly agree on all your points above, but you ignored my assertion:

I wish there was another option..... Can you imagine how much less our burden would be without waste and abuse and fraud. Perhaps that is were AI would be helpful. Do away with elected officials and let logical AI run the show.

My apologies. But I think I did answer that with my "pay to play" mindset. You use a service, you pay for it. You don't use a service, you don't pay. Let's look at law enforcement (current tax system) for example. We can all reasonably believe that the vast majority who currently use law enforcement aren't paying for it (aren't paying taxes).

Would not us as residents pay the majority of tax in any form if we lived here full time? We'd buy more gas, pay more tolls and buy more goods than a tourist or snowbird......technically. That was an attempt to answer your assertion. I think that may have answered it.

Even the simple 500K tax exemption would be something. Of course I come from MN where my burden for the same value home was 21% of what I'm paying here. I can't believe what some people tolerate when they say this is cheap here compared to where they came from. And lets look at that MN property. There is no scenario that I can think of where law enforcement or fire will arrive in time to be useful or effective. So what am I paying for?

[ton80]

Originally Posted by Bill14564

Yes, the Save Our Homes assessment limitation is also very valuable and saves a lot of money for some people. However, that was not what the OP asked about.

Bill. with all due respect. The OP asked what is the value of getting the Homestead exemption. There are two parts of the value of applying for and getting approval for the Homestead Exemption.
1.Getting the Homestead exemption itself gets to save you up to 50,000$ (for 2 owners) in taxable value and also makes you eligible for the Save Our Homes limits on Home Appraisal increases.
2. In my case save our homes reduces my taxable value by more than 400k$..a much bigger savings. Since the tax budget is a zero sum exercise, the tax rate would change somewhat if there was no SOH program, so the actual savings would not be quite as large as 42% but would be more than the effect of the Homestead Exemption reduction of reducing taxable value by 50,000$.

[CoachKandSportsguy]

Originally Posted by ton80

Bill. with all due respect. The OP asked what is the value of getting the Homestead exemption. There are two parts of the value of applying for and getting approval for the Homestead Exemption.
1.Getting the Homestead exemption itself gets to save you up to 50,000$ (for 2 owners) in taxable value and also makes you eligible for the Save Our Homes limits on Home Appraisal increases.
2. In my case save our homes reduces my taxable value by more than 400k$..a much bigger savings. Since the tax budget is a zero sum exercise, the tax rate would change somewhat if there was no SOH program, so the actual savings would not be quite as large as 42% but would be more than the effect of the Homestead Exemption reduction of reducing taxable value by 50,000$.

This explanation is the correct financial explanation.
The average assessment increase is 7% per year without the exemption.
The difference in assessed value roughly 4-5% per year reduction in assessed value with the exemption, which multiplied by the tax rate is the significant savings.

So, yes, the homestead exemption is very valuable, especially when inflation is higher than 3%, and the longer you own the home, the more money you save as the differential adds over time.

[Bill14564]

Originally Posted by ton80

Bill. with all due respect. The OP asked what is the value of getting the Homestead exemption. There are two parts of the value of applying for and getting approval for the Homestead Exemption.
1.Getting the Homestead exemption itself gets to save you up to 50,000$ (for 2 owners) in taxable value and also makes you eligible for the Save Our Homes limits on Home Appraisal increases.
2. In my case save our homes reduces my taxable value by more than 400k$..a much bigger savings. Since the tax budget is a zero sum exercise, the tax rate would change somewhat if there was no SOH program, so the actual savings would not be quite as large as 42% but would be more than the effect of the Homestead Exemption reduction of reducing taxable value by 50,000$.

Please reread the original post - the OP’s question was very specific and is not answered by SOH information.

[Debra Freeman]

Two other reasons why you should homestead your property:

Protection during Probate:
Homestead property is protected from creditor claims during the probate process, ensuring that your family's home is safeguarded.

Inheritance Protection:
Florida's homestead laws offer protections for surviving spouses and lineal descendants, ensuring the proper distribution of the home after your death.

[KathiF]

Originally Posted by ElDiabloJoe

Realistically, how much is the $50,000 homestead exemption actually worth? Say you're in a $350,000 property. What would (approximately, of course) the annual property tax on homesteaded vs non-homesteaded property?

With it your taxes have a cap rate on increasing each year without it they can increase a lot more.

[westernrider75]

Originally Posted by Bill14564

Yes, the Save Our Homes assessment limitation is also very valuable and saves a lot of money for some people. However, that was not what the OP asked about.

Is Save Our Homes something different than the Homestead Exemption? I’ve never heard of it and wondering if I’m missing out on some savings? I do currently get the homestead exemption.

[Bill14564]

Originally Posted by westernrider75

Is Save Our Homes something different than the Homestead Exemption? I’ve never heard of it and wondering if I’m missing out on some savings? I do currently get the homestead exemption.

If you have the homestead exemption then you aren't missing out on anything.

The Homestead exemption is a deduction from the assessed value before calculating property taxes. The deduction is $25,000 for school taxes and $50,000 for all other taxes.

The Save Our Homes (SOH) benefit says the taxable value of a home that has a homestead exemption cannot increase more than 3% in any one year. This kicks in automatically if you have a homestead exemption. While the market value of the home can increase greatly, the taxable value can only increase by 3%.

If the market value of a home increased from $200,000 to $220,000, the SOH benefit would limit the taxable value to $206,000. The additional $14,000 would be remembered as the amount of benefit you are receiving from the SOH program. Depending on what the market value of the home does next year, the $14,000 might increase or decrease but the taxable value of the home will never increase more than 3%.

Note that from 2023 to 2024 the market value of some homes decreased. Those without a SOH benefit saw their taxable value decrease as well. However, because my home is carrying a SOH benefit, my taxable value increased another 3% towards its true market value.

On your TRIM notice the first table shows your ad-valorem property taxes. Just below that, the second block shows the calculation of assessed value and the third block shows the SOH information. On mine, the second block shows my market value decreased but since my assessed value is less than my market value, the assessed value increased by 3%. Since my assessed value is getting closer to my market value, the third table shows my SOH benefit is less this year.

The OP asked what the Homestead Exemption would do for taxes on a home assessed for $350,000. The Homestead Exemption would reduce the assessed value by $25,000 for calculating school taxes and by $50,000 for calculating all other ad-valorem (property) taxes. The SOH benefit comes into play in determining the $350,000 assessed value. The home may have a market value of $450,000 but with a $100,000 SOH benefit the assessed value would be the $350,000 that the OP asked about.

[MandoMan]

Originally Posted by Ruger2506

Well lets get this straight right from the get go. All property taxes are theft. They are extortion. Holding a person's private property ransom with the threat of losing the property they have worked hard for for many many years.

The only fair taxes are sale taxes. I can decide if I want to avoid paying tax by not buying an item, by making my own, by refurbishing a used item, etc. If I am OK with paying taxes and want to pay, I buy.

And here in The Villages the problem is 10X worse. We get raped by the county AND The Villages for fire. Pay twice and won't ever use one. I pay for a school system I'll never use as my boys go to the charter school.

Roads can be paid for by gas taxes and tolls. Most other things sales tax. The fairest way is to allow the individual tax payer to determine if they want to pay. If they don't want to pay, they don't consume or drive in the example above.

Property tax, I have little to no choice as I have to live somewhere and rent prices have property tax built into them. We all need shelter, property tax is extortion.

I'm surprised how many fools are willing to simply hand over their wealth the all knowing and all powerful Oz.

And as my brother-in-law explained to me thirty years ago, police protection and investigation should be for those who sign a contract for it at the beginning of each year and pay something like an insurance policy. If, say, you’re in an accident, and you don’t have a contract with the police, they won’t help unless you sign an on-the-spot contract for immediate care at a much higher rate. If you get robbed or mugged, Have a good day!

Likewise with the Fire Department and Ambulance service. You sign a contract every year, essentially buying Fire and ambulance insurance. If you need it, you are cared for without extra cost. If you don’t have the contract and your house is on fire or you have a heart attack, you won’t be helped unless you sign a contract for immediate aid, at the actual cost of the service, more or less. So your house burns and you also get a bill for $100,000 for their attempt to put out the fire.

I educated my three kids at parochial schools for twelve years each while also paying the public school taxes paid by homeowners. I still pay. But I want citizens to be educated, and I’m willing to do my part by supporting the schools. I want us all to be safe, so I happily do my part to support the fire and police departments. I pay all my taxes, and I don’t complain very much. My taxes aren’t all that high, and I get my money’s worth.

I lived in the UK for a year forty years ago. There, people pay a lot of money in property taxes and other taxes. They also pay TWENTY PERCENT VAT (Value Added Tax) on things like cars and toasters and clothing. They pay this whether the items are made locally or (more likely) in other countries. In a number of parts of the EU, the VAT is 25%. So, if you want to buy an American car in the UK, add 20% to the cost you pay. Wait, that sounds familiar somehow.

[westernrider75]

Originally Posted by Bill14564

If you have the homestead exemption then you aren't missing out on anything.

The Homestead exemption is a deduction from the assessed value before calculating property taxes. The deduction is $25,000 for school taxes and $50,000 for all other taxes.

The Save Our Homes (SOH) benefit says the taxable value of a home that has a homestead exemption cannot increase more than 3% in any one year. This kicks in automatically if you have a homestead exemption. While the market value of the home can increase greatly, the taxable value can only increase by 3%.

If the market value of a home increased from $200,000 to $220,000, the SOH benefit would limit the taxable value to $206,000. The additional $14,000 would be remembered as the amount of benefit you are receiving from the SOH program. Depending on what the market value of the home does next year, the $14,000 might increase or decrease but the taxable value of the home will never increase more than 3%.

Note that from 2023 to 2024 the market value of some homes decreased. Those without a SOH benefit saw their taxable value decrease as well. However, because my home is carrying a SOH benefit, my taxable value increased another 3% towards its true market value.

On your TRIM notice the first table shows your ad-valorem property taxes. Just below that, the second block shows the calculation of assessed value and the third block shows the SOH information. On mine, the second block shows my market value decreased but since my assessed value is less than my market value, the assessed value increased by 3%. Since my assessed value is getting closer to my market value, the third table shows my SOH benefit is less this year.

The OP asked what the Homestead Exemption would do for taxes on a home assessed for $350,000. The Homestead Exemption would reduce the assessed value by $25,000 for calculating school taxes and by $50,000 for calculating all other ad-valorem (property) taxes. The SOH benefit comes into play in determining the $350,000 assessed value. The home may have a market value of $450,000 but with a $100,000 SOH benefit the assessed value would be the $350,000 that the OP asked about.

Thank you for that explanation.

[CoachKandSportsguy]

Originally Posted by Bill14564

If you have the homestead exemption then you aren't missing out on anything.

The Homestead exemption is a deduction from the assessed value before calculating property taxes. The deduction is $25,000 for school taxes and $50,000 for all other taxes.

The Save Our Homes (SOH) benefit says the taxable value of a home that has a homestead exemption cannot increase more than 3% in any one year. This kicks in automatically if you have a homestead exemption. While the market value of the home can increase greatly, the taxable value can only increase by 3%.

. . . .

The OP asked what the Homestead Exemption would do for taxes on a home assessed for $350,000. The Homestead Exemption would reduce the assessed value by $25,000 for calculating school taxes and by $50,000 for calculating all other ad-valorem (property) taxes. The SOH benefit comes into play in determining the $350,000 assessed value. The home may have a market value of $450,000 but with a $100,000 SOH benefit the assessed value would be the $350,000 that the OP asked about.

Start with a $350,000 house:
Annual assessed increase 7% (ours) without SOH exclusion
Annual assessed increase 3% with SOH exclusion.
$50,000 deduction on assessed value with SOH
1.1% property tax rate (median estimate)

Calculation is (Start Value *1.07^(YearNbr) - StartValue * 1.03^(YearNbr)-exclusion) * propertytaxrate

Savings differential yearly with and without SOH exclusion:
Year Savings
1 $700
2 $873
3 $1,059
4 $1,263
5 $1,487
6 $1,730
7 $1,997
8 $2,288
9 $2,605
10 $2,949

[Heytubes]

I like how Georgia does it: If over the age of 60, school tax is removed.

[ElDiabloJoe]

I am the O.P. (Originating Poster for RailRoadNewJerseyGuy who doesn't like acronyms). I appreciate all the responses. My original post did not inquire about Save Our Homes because I was unaware of it. I appreciate the responses.

We have homes in two states, and trying to figure out how to maximize savings. Both states have zero state income tax. Tennessee has very cheap auto registration (under $75 regardless of age of vehicle). Auto insurance used to be cheap, has gone up like everywhere else in America. Tennessee has NO homestead exemptions. Tennessee's sales tax is around 9.25%.

Not sure if we should be citizens of one state or the other, or try to figure out if there is a way to split citizenship: where one spouse lives in one state 6 months and a few days, and the other spouse does the same in another state. We can stand to be apart for a week or two annually to make it work. Being citizens in separate states may preclude us from filing Federally as joint.

Maybe should be another thread?

Thank you.