Florida's Super Homestead Exemption Calculator

There is much information, both good and bad, about Florida's proposed new Homestead Exemption and how it affects your tax liability as a real and tangible property tax payer.

There are several tax calculators already appearing on the internet. This one is a simple version at this URL - Florida's Super Homestead Calculator.

This might help you to determine if you want ot keep your Amendment 10 CAP and $25,000 exemption or opt out of that and accept the Super Homestead Exemption.

Keep in mind that you do not have to do anything. If you already have the present homestead on your real property, it will stay there as long as you stay there. If you buy another homestead, you will automatically have the Super Homestead Exemption.

If you buy a new property to homestead, you will only have the Super Homestead Exemption option.

I would think that most fixed income families would keep their existing Amendment 10 Homestead Exemption and not opt for the Super Homestead Exemption.

Young or mobile families might be better to choose Super Homestead Exemption especially for the short term.

The main difference:

> With Amendment 10, the tax payer is taxed on the ASSESSED value which has maximum increases of 3% annually.

> With Super Homestead Exemption the taxes will be based on MARKET value which has seen increases of up to 20% and more in the recent years, especially in Duval and a few other counties such as Dade and St. Johns and a few others.

As an example: this homesteaded property would sell today at a MARKET value of $200,000. It was purchased 20 years ago for $60,000. It has been capped (max 3% assessed value/year) since 1995 (the first year of the Amendment 10 legislation). 2007 taxes will be $1,200 (+/-) on a $200,000 home because the ASSESSED (taxable) value has been "capped" since the first year of the Amendment 10 CAP in 1995.

Under Amendment 10, a new owner would pay ad valorem (property) taxes on the new purchase price of $200,000 (in theory). Under Amendment 10, the new owner would pay $4,675 in property taxes. Under this system the taxable now would have been on the ASSESSED value which in theory would have been the purchase price for year 1 and then a maximum of 3%(CPI) per year. The market value could be 10 or 20% per year, but Amendment 10 kept the TAXABLE amount (assessed amount) to a maximum of 3%/year.

The difference between the MARKET value and the ASSESSED (taxable for homesteaded properties) is called the deferred value.

So in the example above, the deferred value (which the tax payer does NOT pay taxes on under Amendment 10) is the difference between the MARKET (what the property is worth on the open market between a willing buyer and a willing seller) and the ASSESSED value (taxable amount)

Under Amendment 10 the previous owner is paying taxes on a $200,000 propety - the deferred amount of $162,000 (non-taxable) = 88,000 - $25,000 HOMESTEAD EXEMPTION = a taxable amount of $63,000 x 1.87% (2006 taxable millage rate) = $1,178.00 (+/-) tax bill.

Under Amendment 10, the new owner would pay $4,675 in ad valorem property taxes.

Under the Super Homestead Exemption @ $200,000 purchase (market value) now becomes the ASSESSD value also. But the taxes are based on 25% of that price which is $62,500 x tax % (millage rate) 1.87% = $1,168.75 in taxes.

So for the existing homesteaded property the Amandment 10 option appears a good one and for the new buyer the Super Homestead Exemption looks like a good option.

BUT - - -

one must consider all the variables in the CALCULATIONS like:

Assessed Value:
Real Estate Appreciation:
Per Capita Income Growth:
Market Value:
Consumer Price Index:

PLUS your situation: retired, fixed income, moving, transfer, salary increase, etc.

Simple? NO! Easy? NO!

Understand that none of this goes into effect as a State Constitutional Amendment until after the general vote in January 29, 2008.

I hope that this was some help to clarify this complicated issue!

Real Estate Jacksonville Florida