Figuring out the property tax puzzle
If you're a Florida homeowner, reading this story about the proposed property tax cut is very, very helpful. Plug in some numbers in the calculator, too, to figure out if you want the super exemption or to stay with the current SOS cap.
I spend some time doing this and it confirmed what I suspected. Because I've lived in my house so long and because it has appreciated considerably in those years, I'm better off with the 3 percent cap. But I wonder how many people are going to take the time to do what I did.
Proponents of this tax cut -- which must be approved by voters in a special referendum -- have their work cut out for them.
I spend some time doing this and it confirmed what I suspected. Because I've lived in my house so long and because it has appreciated considerably in those years, I'm better off with the 3 percent cap. But I wonder how many people are going to take the time to do what I did.
Proponents of this tax cut -- which must be approved by voters in a special referendum -- have their work cut out for them.
posted by Ana Veciana-Suarez at 9:00 AM
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4 Comments:
I think that people like you (and me), who have lived in our homes for a while, are all pretty sure that they are better off with the 3% cap.
Others might have to crunch numbers to make their decisions.
My main concern is the "portability" issue - as we grow older and our nests grow empty - we are stuck in large, family homes because the tax hit would be too much if we move to a smaller place.
That, is the issue to solve.
Oi, achei teu blog pelo google tá bem interessante gostei desse post. Quando der dá uma passada pelo meu blog, é sobre camisetas personalizadas, mostra passo a passo como criar uma camiseta personalizada bem maneira. Até mais
I don't see why you call it a tax cut without quotes around the "cut". For most people, this new version would be a tax increase. And if they make SOH unconstitutional, it will be a tax increase. For the first person that mentioned portability, it is easy to add. Just use this formula for anyone moving from one home to another in Florida.
(Minimum of Old Home Taxable Value or New Home Sale Price) + Maximum of zero (so they can't get a "negative tax amount") or (New Home Sale Price - Old Home Sale Price))
If the person downsizes their home, their tax will be either the SOH level they are used to, or the new home sales price. If they move to a comparable home, their SOH rate stays the same (portability!), and if they move up, they only pay for the increase value of their home in addition to the old SOH tax rate. It is fair, portable, and provides an escape for those elderly trying to move but afraid of the tax bite.
Go ahead and write it up and send it to Congress, if they will listen....
In fact, if you add that portability formula to the property tax calculator as another option, I think people will see how well it works for their needs! I am do the math in the article comments, and I came up with this formula to solve the portability issue. It wasn't that tough...
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