This column should be titled “Save our Taxes,” since that’s what we’re really talking about. However, saving on property taxes is part of the Save Our Homes benefits and portability transfers are another piece of this law.
In January of 2008, the Florida Legislature passed legislation that allows homeowners the ability to move an existing homestead exemption to a new homestead. If you are moving, you may be able to transfer or “port” all or part of your homestead assessment difference.
To transfer the Save Our Homes Benefit, you must establish a homestead exemption for the new home within three years of Jan. 1 of the year you abandoned or sold the old homestead. You must file the Transfer of Homestead Assessment Difference Form with the homestead exemption application. The amount of your portability will be reflected on your Notice of Proposed Property Taxes that is mailed in mid-August. If you do not qualify for portability, you will be notified by certified mail no later than July 1.
A portability exemption can be used each time you move and establish a new homestead, and it can be applied for if your new homestead is a higher value than your old homestead or if the just value of your new homestead property is less than the just value of your old homestead. The law was enacted in order to free up homeowners to move on from their homestead properties with low taxes and still protect to some degree the amount of taxes they pay.
The calculation is not straightforward and there are caps to consider. If you don’t yet have a property ready to purchase or have already purchased, you will not know for sure what the benefit will be right away. On the Manatee County Property Appraiser website under Exemptions/Portability, you will find a calculator and more information about this benefit. I found it was a challenge to calculate without knowing the exact purchase price and assessed value of the new property; nevertheless, it will give you an idea of the process.
Based on February sales statistics for Manatee County reported by the Realtor Association of Sarasota and Manatee, we are at a balanced market or getting very close to one:
Single-family homes closed 8.7% more properties from last February. The median sale price was $499,990, up 2%, and the average sale price was $722,563, up 13%. Median time to sale was 102 days compared to 88 days last year and there were 53.5% more new listings leaving us with a 4.2 month supply of properties.
Condos closed 0.5% more properties from last February. The median sale price was $349,493, down 5.5%, and the average sale price was $385,521, down 11.5%. Median time to sale was 93 days compared to 67 days last year and there were 28.1% more new listings, leaving us with a 6.2 month supply of available properties. Six months of availability has traditionally been considered a normal market.
Now that the market is adjusting to the benefit of buyers and sellers, utilizing the option of tax portability becomes even more valuable. Save our taxes will also save our homes ultimately, so enjoy another tax benefit Florida offers. You do need to wade through the paperwork, but it’s worth it.
