Here is how you calculate roughly about how much your taxes will be if you buy a new house that is more expensive then your current home based on the new $50,000 tax exemption for homesteaded properties and portability factored in for Florida Homeowners.
There are four numbers involved
Just Market Value
Assessed Value
Millage Rate
Exemption Amount
Example:
You bought your current home in 2000 for $100,000 AND you want to buy a $300,000 home in 2008
Currently your home you live in now has an assessed value given by your county, lets say over the 8 years your Assessed Value is now $108,000 and your Just Market Value is now $150,000. Keep in mind though your home would actually sell for more like $190,000.
Subtract the Just Market Value from the Assessed Value. ($150,000-$108,000= $42,000)
Add your old $25,000 homestead exemption ($42,000 + $25,000=$67,000)
$67,00 will now be your new tax exemption
**Now your new home’s “Just Market Value” is determined by your local county property appraiser and there is no way to predetermine the value they give it until an actual appraisel is done, however, you can create a range that it will most likely fall between. It will be between what the new home’s “Just Market Value” is now (with the old owners that are moving out) and what the sale price you bought at.
So
on the LOW side:
Take your new home’s “Just Market Value” let say $250,000 and subtract the new exemption value ( $250,000-$67,000= $183,000)
Now take $183,000 times your county mill rate. (hillsborough county’s average is .22008)
$183,000 * .022008= $4027
Now subtract the new additional $25,000 exemption. HOWEVER, since the schools were not affected by the new law. The exemption basically equates to a $240 subtraction.
$4027-$240= $3787 est. tax bill on the low side.
on the HIGH side:
Take your new home’s “Sale Price”, $300,000 and subtract the new exemption value ($300,000-$67,00= $233,000)
Now take $233,000 times your county’s local mill rate (hillsborough county’s average is .22008)
$233,000 * .022008= $5127
Now subtract the new additional $25,000 exemption, HOWEVER, since schools were not affected by the new law. The new exemption basically equates to a $240 subtraction
$5127-$240= $4887 est. property taxes on the high side
Your property tax range in your new house will be $3787 to $4887 per year. So your house payment will go up from your old home about $117 to $209 per month in this example.
SOOOoooooo, you save $1715 per year over the old property tax law, which is $142 per month, which allows you to buy a house about $20,000 more expensive home now since the new law was voted in by YOU, the citizen.
Yes a little complicated but hey “Its a step in the right direction”
You can find your “Just Market Value” & “Assessed Value” by visiting your local county appriser website, but for hillsborough county residents here you are:
http://www.hcpafl.org/www/search/index.shtml
Crystal Armstrong, Real Estate Consultant
Direct: 813.951.4115