Property Taxes

When purchasing a home in Broward County a homeowner will pay property taxes and receive a Homestead exemption on their primary residence after filing for the exemption.  A standard rule of thumb when calculating  property taxes is approximately 2% of the Purchase price. This is an estimation but can give a prospective home buyer an idea of what the following year taxes will be after purchasing. For additional clarification, see the information below taken directly from the Broward County Property Appraisers website: www.bcpa.net   This site proves to be a valuable resource and has a TAX ESTIMATOR calculator to calculate a rough estimate of the property taxes for the home for the tax year immediately AFTER you purchased it.

TIPS:  1:State of Florida does not charge State taxes on Property. The State of Florida does NOT charge a State Income tax

2: HOA fees do NOT include property taxes

3: Tax deductions can include Property Taxes and Interest paid on mortgage payments–your tax advisor can  review this information with you

 

From the BCPA website

**ESTIMATING FIRST YEAR TAXES-HOW CAN A NEW HOMEBUYER ESTIMATE FIRST YEAR TAXES?

When you purchased your home this year, you inherited the seller’s exemption status for the current tax year. Please review your closing statement, as the seller likely gave you a deduction for the seller’s pro rata share  of the current year taxes. Because of that, you will be responsible for payment of the entire tax when it arrive in Novemeber. Next year, your home will be reassessed based upon your purhcase price this (and the sales prices this year of   from other qualified market sales in your neighborhood). Finally, remember that you will need to file for homestead exemption on the property for next year as the seller’s exemption will automatically be removed at the end of this year.

**WHY ARE MY TAXES SO MUCH HIGHER THIS YEAR VERSUS WHEN I PURCHASED MY HOUSE LAST YEAR?

In addition to the homestead exemption explanation above..the BCPA also explains additional reasons why homeowners may see an increase in their first year property taxes

From the BCPA website

Another reason you–and many Broward residents–may be seeing higher taxes this year is because several municipalitites in Broward significantly increased their property tax rates and non -ad valorem fees (fire/rescue, waste, drainage, etc) last year.

**WHAT ARE MY TAXES IF I PURCHASE A FORECLOSURE?

The BCPA  provided the following information with regards to Tax Assessments for Bank Owned Foreclosure purchases: 

If you purchase a property in a foreclosure, your actual purchase price might not reflect the market value used for determining your taxes. The Florida Department of Revenue (DOR) issued an advisory opinion that foreclosures generally should not be used for assessment purposes — but Property Appraisers MIGHT qualify a foreclosure sale if the property was listed for sale on the MLS open market and the property is in normal/good condition. Tax Year 2009 was the first time in which DOR allowed foreclosure sales to be qualified in determining assessments.