Property Tax Bills

Thank you SO much for this info. I was very confused when I got the notice because I had called about two weeks prior to ask them about our 2005 valuation. That number was 40 percent higher than last year's, so I was expecting a tax bill much higher than the one I got. Too bad I'm right.

I can't believe they did that. :shock:

what are we supposed to do with these? I just pay taxes through the mortgage company and I never know what I'm supposed to do when they send me these notices. Do they send them to the mortgage company, too since they seem to bill the mortgage company directly?

Also, do you fill out the questionnaire and send it back for any reason?

:roll: Sounds like a waste of tax money.

what are we supposed to do with these? I just pay taxes through the mortgage company and I never know what I'm supposed to do when they send me these notices. Do they send them to the mortgage company, too since they seem to bill the mortgage company directly?

Also, do you fill out the questionnaire and send it back for any reason?

I didn't get a questionnaire. The mortgage company says it paid more last year than the statement indicates. If "budget changes" happen, it will go up; otherwise it will decrease. Yes, the mortgage company gets a copy of the property tax notice - otherwise they wouldn't know what to pay. I need to call them to see why they paid more than we owed. GRRRR!

Our property value went up BTW.

Yeah, and like, I live in GA and can't be at the meetings because I can't cancel class after being off all summer.

what are we supposed to do with these? I just pay taxes through the mortgage company and I never know what I'm supposed to do when they send me these notices. Do they send them to the mortgage company, too since they seem to bill the mortgage company directly?

Also, do you fill out the questionnaire and send it back for any reason?

We usually look them over, mumble something like "looks we're going to spend an extra $20 this year to help North Bay Fire buy a new truck" and then forget about them since our taxes are escrowed with out mortgage as well.

I assume they send out the notices because of some state law requiring it, and because it lets the people who don't have their taxes escrowed know just how much they're going to have to come up with in another four months so they can plan for it.

Just got my tax bill in yesterday as some others, then I read on the thread about the mistake. Well I took it upon myself to call to see what my ball park on the taxes were going to be this year and I was absolutly floored. My tax bill has doubled, and it wasn't small to begin with. I told them, I haven't gotten any closer to the beach, my house hasn't increased in size, how can they base my home on another home that is twice the size of mine and closer to the beach and tell me that is why. If the county is not careful they are going to make it to where people can't afford to even pay the taxes on the homes.

For those whose taxes are escrowed into your mortgage, get ready, because if you live in Walton County your property taxes are more than likely going to double which means your mortgage is going to take a big increase.

I really feel for y'all on the tax increase, which is probably coming on top of an insurance increase. I'm now feeling very lucky we're homesteaded.

what does homesteaded mean?

we spend more than 6 months a year down there....should we do it?
what does it require and what are the benefits.

doug

what does homesteaded mean?

we spend more than 6 months a year down there....should we do it?
what does it require and what are the benefits.

doug

You can only have one property homesteaded at any one time. It is supposed to be your "permanent" residence (although when people split time between residences it is hard to say what is permanent). All that is required is proof of ownership and signing a statement swearing under penalty of law that this is the only property that is homesteaded. You are then exempted from some property taxes.

what does homesteaded mean?

we spend more than 6 months a year down there....should we do it?
what does it require and what are the benefits.

doug

It declares your primary residence and shelters you from large tax increases. "Save our Homes" is the part of the Fl. Constitution now and limits increases to 3 percent/year for those homesteaded here. Unfortunately the state now cost shifts over to those owning non-homesteaded [rental] property and newcomers by reevaluation to "market value ". Homesteaded properties are also reevaluated, but are capped to a 3 percent max upward adjustment. What a deal!

Homesteading is the way to go if you can do it. As Bob pointed out, the exemption of $25,000 of your taxable value is not the big deal, it's the fact that by law you are limited to increases of 3 percent of your assessed value annually. If you apply you must do so by (I believe) March 1 for the 2006 tax year. Camp Creek Kid said in another post that it is his understanding that assessments would go way up next year, so if you can the time to do it is now!

You can only have one property homesteaded at any one time. It is supposed to be your "permanent" residence (although when people split time between residences it is hard to say what is permanent). All that is required is proof of ownership and signing a statement swearing under penalty of law that this is the only property that is homesteaded. You are then exempted from some property taxes.

At least in Okaloosa (not sure about Walton or other counties) you do have to show other proof you live there. If you've got a car or cars, they're supposed to be registered to the homesteaded address, and your driver's license address is also supposed to list the homesteaded property. Florida does hit you with a $100/vehicle plate fee the first time you register a car in the state, but after that, annual tag charges are pretty reasonable- I think they're about half what we were paying in Tennessee, and for an extra $10/year or so, you can get one of the 150 different specialty plates available.

Homesteaded properties are also reevaluated, but are capped to a 3 percent max upward adjustment.

To add to Bob's correct statements, Save the Homes act kicks in only after two years (I think) of claiming the property as your Homestead. Durning the first two years, the increase is not capped at 3%.

It declares your primary residence and shelters you from large tax increases. ...

No one mentioned it on this thread, although I believe Bob may have touched on it in his statement above. The big savings comes in capital gains when you sell your primary home. If you meet the qualifications, which include owning and living in your home as your primary(homesteaded) residence for two out the last five years, you are exempt from the gains on up to $250K for a single person or up to $500K for married couples. It will not apply to property not used as your primary residence. See your accountant for further explanation. It is almost as cut and dry as I am stating, but perform your DD and see your accountant if you are interested in learing more.

eg- Let's say you and your spouse meet the qualifications required, and you paid $500K for your homesteaded beach house, in which you lived for the last two years. You sell your house for $1Million. You pay Uncle Sam $0 in capital gains on your "investment." If you sold that house within the first year of onwership for $1M and your tax rate was 25%, you would owe Uncle Sam $125K on that sale.

If you sold that house within the first year of onwership for $1M and your tax rate was 25%, you would owe Uncle Sam $125K on that sale.

I was under the impression that you are taxed under long-term capital gains which are currently capped at 15%. Am I mistaken about that?

Having just returned to my office from the Property Appraiser's office (to prepare myself for the worst),I am very, very grateful that I live here, managed to build our home when we did and now fall under Save Our Homes. I am also glad I do not work over there today.

It is my understanding that the millage has actually dropped, but appraisals are up - WAY up. As the market value of your property increases, so do your property taxes. Where it hurts is for folks like me, and probably you, who have no desire to sell your property.

One thing I haven't seen mentioned on this thread is that, if you declare homestead exemption here, you cannot legally rent your home here. At all.

I was under the impression that you are taxed under long-term capital gains which are currently capped at 15%. Am I mistaken about that?

The 15% cap applies to long-term investments only, ie- investments held more than one year. Any investments sold before inside the first year, are taxed as ordinary income, which was the example I used.

Shallowsnole is correct on the rental info on Homesteaded property, but the tax savings may benefit you more than the rental income in the end. I know they don't help with cash flow, which most folks are after.

I was under the impression that you are taxed under long-term capital gains which are currently capped at 15%. Am I mistaken about that?

As SJ said, the higher tax rate (your income tax rate) would apply only during the first year of ownership. After the one-year mark, the capital gains tax of 15 percent would kick in. That is, unless it was your primary residence as SJ noted above.

They told me at the office yesterday that the housing aspect has not increased but the land has increased tremendously over the past year in Walton County. My taxes have gone from $3900 in 04, to $6300 in 05 and this next year it has risen to 11,000. We cannot homestead our home because we do rent and it is truely our second home. What are our chances of an appeal and does anyone know the process to do one in the state of Florida?

The 15% cap applies to long-term investments only, ie- investments held more than one year. Any investments sold before inside the first year, are taxed as ordinary income, which was the example I used.

Oops...my mistake. Should have read your post more closely.

As they say...We Are All (well most) SCREWED! Maybe I do DESERVE that beach permit after all! JK!

Another note on assessed values of real estate in Walton Co -- It pays to live in a neighborhood without many sales. I understand the values are calculated based on sales in areas of close proxmity to the subject property, ie - typically within the neighborhood. If you own in a neighborhood like Seacrest, where ownership changed monthly for a while, you are going to get hit hard with high assessements. If you own in The Shallows, located in Pt Washington, where property does not often change ownership, you will be set with much lower assessments.

No matter what, after living in towns where the millage rates exceed 27, I will pay 12 mills.

They told me at the office yesterday that the housing aspect has not increased but the land has increased tremendously over the past year in Walton County. My taxes have gone from $3900 in 04, to $6300 in 05 and this next year it has risen to 11,000. We cannot homestead our home because we do rent and it is truely our second home. What are our chances of an appeal and does anyone know the process to do one in the state of Florida?

From the Walton County Property Appraiser's Site:
If you have any questions about your property's value or how it was determined, you are encouraged to contact this office. An appraiser will be happy to discuss your appraisal with you and will be able to show you the information used to determine your property's value. Our office maintains current records on all real estate market activities. These records are available for your review.

After meeting with an appraiser and examining the relevant data, you have the right to file a petition with the Value Adjustment Board (VAB). Petition forms are available at the Property appraiser's office. The deadline for filing a petition is 25 days from the mailing of your notice of proposed property taxes. You must file on or before this date to have your appraisal considered. There will be a $15.00 fee payable at filing.

We have two small cottages. We bought one in 2003 and the other in 2004. One didn't increase much at all this year, but it was already being taxed at twice the rate of the other. The other cottage's taxes doubled. So, now they are just about equal. This makes sense since they are both the same size and should be worth the same amount.

But, of course, if the bills we got were wrong, then I may have a bigger shock waiting when the new bill comes out.

We have two small cottages. We bought one in 2003 and the other in 2004. One didn't increase much at all this year, but it was already being taxed at twice the rate of the other. The other cottage's taxes doubled. So, now they are just about equal. This makes sense since they are both the same size and should be worth the same amount.

But, of course, if the bills we got were wrong, then I may have a bigger shock waiting when the new bill comes out.

The estimated bill that you just got in is not correct. You can call the number at the bottom and they can give you a correct estimate of next years. I hope you don't get as shocked as my husband and I are right now. Thanks SJ for that information. We may have to look into that. I just can't believe it can increase that much in one year. I can see over a couple of years but this is outrageous. We have had a couple of homes on another street in our neighborhood but nothing on our street to warrant this increase.