What you Should Know About Homestead

Hey everybody. Beth with Couture Real Estate here in Sarasota, Florida. I hope you're doing well today. So it is that time of year when we start talking about homesteading again. So in order to qualify for Homestead for 2023, you need to apply for that homestead by March 1st of this year. Now, don't forget, we pay our taxes and arrears. So when you apply for homestead, it's gonna count for this year, not last year. Now, who qualifies? If you bought a house in 2022 or if you've owned here before and then decided to move here permanently, then you qualify to apply for homestead. In order to do that, you must live here full-time, which is defined as living here for six months in a day. That timeframe does not have to be consecutive, but cumulatively it needs to be six months in a day. Once you qualify for homestead, what's gonna happen is the county tax assessor is gonna take your tax-assessed value and subtract $50,000 from it, and then you will pay property taxes on the remainder.

Now, your tax-assessed value is a value determined by your Sarasota County Tax Assessor, or Manatee County Tax Assessor, or in whatever county in Florida you live in. The tax assessor determines what your value is, and that value is always going to be less than market value. So you're gonna take your market value and then you're gonna pay less, which is gonna be your tax-assessed value. You're gonna take your $50,000 off of that, and then you're gonna pay on the remainder, and that's how it's done. Now, another benefit of this is the cap. If you are homesteaded, then you will have a 3% cap on your tax-assessed value. This means that year over year, your property taxes cannot go up more than 3%. So what this does for you is if you've owned your property for a while, then that means that your taxes are gonna remain low, whereas your neighbor who just bought their taxes are gonna go up.

Now, if you bought a property last year, your property values are gonna get reassessed and you're gonna pay more than probably your seller did. Probably. This is also why when we go into neighborhoods and we're looking at properties and we see a whole street full of houses that are seemingly the same, everybody's paying a different tax amount because people buy at different times. Maybe they bought two years ago, or five years ago, or 10 years ago, or maybe they're not homesteaded at all, and that is why everybody on the street is paying a different tax amount. Now, the other thing you need to be made aware of is that when you buy a property here, if you're moving to the area from another place in Florida, and if you homesteaded your property in another county in Florida, you qualify for something called portability. That means that you can take some of your savings from your previous house and apply here. You're gonna need to talk to your local county tax assessor to see exactly how that goes and exactly how much money you can get taken off. But I would certainly look into it if you're moving here from another county in Florida. So if you've got any questions on Homestead and how this works, please drop me a line in the comments. I

'm also going to put some links below so that you can go look up how this all works on the Sarasota County Tax website yourself. As always, if you have any questions, please let me know. I'm happy to answer them. And if you have the opportunity to get outside and get some vitamin D, please do so or your sunscreen, drink a lot of water, and I'll talk to you later. Bye everybody.

For homestead explanation and application https://www.sc-pa.com/exemptions/home...

For Homestead portability https://www.sc-pa.com/exemptions/home...

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