Amendment 1
I recently attended a seminar with the Hillsborough County Tax Appraiser regarding Amendment 1 and how it effects property owners. Here is a list of frequently asked questions that he passed out at the seminar.
Amendment 1 FAQs
Q: When will the changes from Amendment 1 show up on tax bills?
A: For those who are eligible, benefits from portability, the additional homestead exemption and the $25,000 exemption for tangible personal property will show up on 2008 tax bills.
Q: How does a person apply for portability?
A: The homesteaded property owner should turn in a completed application to the office of the property appraiser in the county where the new homestead is located. The application from the Department of Revenue. [http://dor.myflorida.com/dor/property/appraisers.html]
Q: Who's eligible for portability this year?
A: A person who establishes a new Florida homestead for 2008 and filed to give up the previous homestead sometime after Jan. 1, 2007. In other words, a person who relocated from a homestead last year and is claiming a new homestead for 2008 is eligible. The deadline for 2008 homestead and portability applications is March 1. The portability benefit would show up on the 2008 tax bill.
Q: Who's eligible for portability after that?
A: Any Florida homesteaded property owner who establishes a new homestead for 2009 or any subsequent year—as long as the person had another valid homestead within two years of establishing the new one.
Q: How much is the portability benefit worth?
A: A homesteaded property owner can transfer up to $500,000 of portability benefit to a new homestead. A person moving to a more expensive home transfers the dollar amount. A person moving to a less expensive home transfers the percentage value.
Q: I don’t plan to move. What happens to the 3 percent cap on property tax assessments I got every year under Save Our Homes?
A: You’re still protected. Save Our Homes doesn’t go away.
Q: Is there an application for the additional homestead exemption?
A: No. The additional exemption will be granted automatically to anyone qualifying for a base $25,000 homestead exemption. It applies only if a property's assessed value exceeds $50,000.
Q: How much is the additional exemption?
A: The exemption is $25,000, but it does not apply to property taxes assessed for local schools. In other words, no additional exemption will be applied to a property's assessed value for the purposes of levying school taxes.
Q: Do business owners and mobile-home owners with tangible personal property have to apply for the exemption?
A: To receive the exemption, they must file their 2008 returns. If the value of tangible personal property is under $25,000, they will not have to file again the following year.
Q: When does the 10 percent cap on annual assessment increases for most non-homesteaded properties go into effect?
A: It goes into effect in 2009. There will also be an application. Keep checking the Department of Revenue web site [http://dor.myflorida.com/dor/property/appraisers.html ]for details.
A couple other scenarios were discussed at the meeting --
Q. What happens to the portability in a divorce situation?
A. Who retains portability becomes part of the divorce settlement. If one party gives the right of portability to the other, the receiving party is only entitled to 50% of the value.
Q. What is Homestead Fraud and what are the penalties?
A. Florida Statute 196.131(2) states "any person who knowingly and willfully gives false information for the purpose of claiming homestead exemption is guilty of a misdemeanor of the first degree, punishable by a term of imprisonment not exceeding 1 year or a fine not exceeding $5,000 or both."
Florida Statute 196.161 (1) (b) states “upon determination by the property appraiser that for any year or years within the prior 10 years a person who was not entitled to a homestead exemption was granted a homestead exemption from ad valorem taxes, it shall be the duty of the property appraiser making such determination to serve upon the owner a notice of intent to record in the public records of the county a notice of tax lien against any property owned by that person in the county, and such property shall be identified in the notice of tax lien. Such property which is situated in this state shall be subject to the taxes exempted thereby, plus a penalty of 50 percent of the unpaid taxes for each year and 15 percent interest per annum.” "Before any such lien may be filed, the owner so notified must be given 30 days to pay the taxes, penalties, and interest."
Florida Statute 196.161 (1) (b) states “upon determination by the property appraiser that for any year or years within the prior 10 years a person who was not entitled to a homestead exemption was granted a homestead exemption from ad valorem taxes, it shall be the duty of the property appraiser making such determination to serve upon the owner a notice of intent to record in the public records of the county a notice of tax lien against any property owned by that person in the county, and such property shall be identified in the notice of tax lien. Such property which is situated in this state shall be subject to the taxes exempted thereby, plus a penalty of 50 percent of the unpaid taxes for each year and 15 percent interest per annum.” "Before any such lien may be filed, the owner so notified must be given 30 days to pay the taxes, penalties, and interest."
"If we did all the things we are capable of doing,
we would literally astonish ourselves."
--Thomas Edison
Related Links:
- Rob Turner Hillsborough County Property Appraiser
- Real Living Southern Homes
- Tampa Homes 24-7.com
- Department of Revenue
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