"bring your property taxes with you?" (Weston, Homestead: short sales, real estate)

[dirtymartini]

Longtime lurker, first time poster!

What's the deal with the "bring your taxes with you" proposal/law/whatever? I had VERY low taxes at my old house, and I am looking to buy something in the 400k range. Someone said, "Öh, your're lucky, you'll pay the same taxes as your previous home!" Come on, that's ridiculous and sounds way too good to be true.

Another thing...on the bcpa.net site, they say that you won't pay taxes on the price you pay for a home if it is a foreclosure or short sale...you will pay taxes on an average of what the homes sold for in that neighborhood the previous year...NOT including short sales and foreclosures. That seems completely ridiculous and unfair.

So...I see a too good to be true scenario and a totally unfair scenario. Can someone explain each one to me?

A little background on me.....

Lived in a townhouse in Weston since 1996. Bought new for 95k, never took money out, and just sold it in June 2008. Made pretty decent money...not as good as if I would have sold it in 2005/2006...but my crystal ball was in the shop at the time!

My husband, daughter and I are camping out at a relative's home and watching real estate prices fall further...although not as much as we would like. We are specifically zeroing in on the Tequesta neighborhood in Weston. That is my DREAM neighborhood and just 3 years ago, I could not consider it, wayyyy out of our price range.

Thanks for any help and input!

[fauve]

I think your best bet would be to call the property appraiser's office. I think everyone is confused as to this, including me, and I look forward to hearing what kind of response you get. I also agree that the tax based on the average of homes in the area is almost fascist in its intent and will do nothing to spur sales of homes in this area which are depressed and not moving in part due to the high property taxes.

[dirtymartini]

Originally Posted by fauve

I think your best bet would be to call the property appraiser's office. I think everyone is confused as to this, including me, and I look forward to hearing what kind of response you get. I also agree that the tax based on the average of homes in the area is almost fascist in its intent and will do nothing to spur sales of homes in this area which are depressed and not moving in part due to the high property taxes.

Thanks Fauve!

Ok, I did some poking around on the BCPA site (guess I could have done that BEFORE I started this thread, but I admit, I wanted it explained to me as sometimes my eyes glaze over if I see too many technical terms!)

Anyway, nothing *too* technical. This is about foreclosures/short sales. Apparently now it only applies to foreclosures...short sales will be taxed on the price paid...

*****************************
If you purchase a property in a foreclosure, your actual purchase price does not reflect the just (market) value used for determining your taxes. Florida law requires our office to use the reasonable market price of a sale of similar homes in your neighborhood (or a similar area) sold under normal financial conditions to determine the assessment -- and that disqualifies the use of foreclosure-related sales. As for short sales, Lori believes they now reflect the market and -- based upon an October 2008 advisory opinion from the Florida Department of Revenue (DOR) -- we are generally treating all 2008 short sales as qualified sales for 2009 assessment purposes. Regardless of your 2008 purchase price, assessments in Florida are done a year in arrears. This means your 2008 assessment is based on the sales in your neighborhood (excluding foreclosures, non-arm's length transactions and other "disqualified" transfers) between January 2, 2007 and January 1, 2008.
*******************************************

Here is the definition of the "Save Our Homes" "Portability"...

***********************************
Homesteaded owners may now move their Save Our Homes (SOH) benefit -- up to $500,000 -- from one homesteaded property to the next within Florida. To be eligible to move these SOH savings, the new Homestead must be purchased within two years of the abandonment of Homestead at the previously Homesteaded property. Owners of Homesteaded properties sold (or "abandoned as homestead") after January 1, 2007, are eligible to move their SOH savings to a newly purchased property so long as the owner obtains homestead on the new property within the strict period allowed by law (see above). Portability applies to both upsizing and downsizing in value, based upon specified formulas. Portability may be used an unlimited amount of times and may be used for moves to anywhere within Florida.
*************************************

The following applies to me...I will be "upsizing"

***********************************

Upsizing occurs where your New Homestead Property has an equal or greater Just (Market) Value than your Previous Homestead property’s Just Value from the last year you held a Homestead exemption there. When you upsize, you transfer the full Portability value (up to $500,000) from your Previous Homestead property. To determine your Portability value from your Previous Homestead property: deduct your Save Our Homes Value from your Just Value for the last year you held a Homestead exemption on the Previous Homestead property – this is your “Homestead Assessment Difference”, or your Portability value. Your Portability value then transfers to your New Homestead property, where it is deducted from the new property’s Just Value, thereby lowering the new property’s assessed value.
**************************************

Ok...so...if I buy a house that is under 500k in price (which of course I will)...does it mean I pay the same taxes I paid on my townhouse, which I paid 95k for? I sold it for 200k, if that matters in this equation. My taxes were under 2k a year, I think. I cannot imagine that if I live in a 2800 sq foot home on a decent sized lot, I am going to get away with paying taxes that low. I am sure I am just not understanding something here.

I also see, if I understand correctly, I must buy something before Jan 2010. I sold June 2008. it is now 2009, and I must buy within 2 years of the sale, but within the year sold counts as the first year (I know that sounds wrong, but I hope you are understanding what I mean!)

[fauve]

Okay....go back to the site and do a property search on your current property. The page that will come up will have a Save our Home value and a Just value. Subtract the SOH value from the Just value and THAT number will be deducted from the new property's Just value (which will figured based on market value that will contain short sales) according to what you posted.

This means that you will NOT pay the same taxes that you currently do on your townhouse, unless of course you buy a house with the same just value as your current house.