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HOMESTEAD PORTABILITY UPDATE October 30, 2008 PowerPoint Presentation
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HOMESTEAD PORTABILITY UPDATE October 30, 2008

HOMESTEAD PORTABILITY UPDATE October 30, 2008

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HOMESTEAD PORTABILITY UPDATE October 30, 2008

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  1. HOMESTEAD PORTABILITY UPDATEOctober 30, 2008 Howard Moyes Deputy Director Property Tax Oversight Florida Department of Revenue

  2. PRESENTATION OVERVIEW • Senate Bill 1588 • Portability FAQs • Statewide Portability Data • Q & A

  3. SB 1588 PORTABILITY CHANGESSECTION 193.155(8), F.S. • Multiple Owners • Split and Join Provisions do not apply when all homesteaders move together • Husband and Wife Provisions • Differential split based on number of homesteaders or specific ownership shares • Granny Flats • Add back to assessed value before calculating transfer amount

  4. PORTABILITY CONTINUED • Abandonment of Homestead without moving • Requires written notification to the PA prior to or at the same time as timely (March 1) new application for homestead • Taxpayers who fail to timely apply may file petition with VAB • Doesn’t apply to abandonment without moving • Failure to apply for portability at time of application for homestead • May apply for portability in any subsequent year and receive portability benefit going forward • Must have timely filed for homestead exemption • Transfer amount based on year homestead was granted

  5. PORTABILITY CONTINUED • Denial and Appeal Process • Notification of denial by July 1 (DR-490PORT) • Portability Appeal process • Notification by July 1 if New PA does not have sufficient information • VAB Petition to New County if New PA has insufficient information • Taxpayer may correspond with prior PA • Taxpayer may file action in circuit court if prior PA fails to provide information • Nothing authorizes an adjustment to just, assessed, or taxable value of the prior homestead

  6. PORTABILITY FAQSEXAMPLE #1 • If a previous homestead is jointly owned and jointly titled by two or more people, is there a difference in how to calculate the port amount if the property is held as?: • Married couple • Joint tenants with right of survivorship • Tenants in common

  7. FAQSEXAMPLE #1 ANSWER • Yes • Married couple moving together keeps entire differential (subject to downsizing & $500k) • JTWROS moving together keeps entire differential (subject to downsizing & $500k) • Married persons or JTWROS moving separately, differential is divided equally based on number of homesteaders • Tenants in common have specific ownership shares

  8. FAQSEXAMPLE #2 • Is there still a two-year eligibility requirement to establish a new homestead in order to transfer an assessment limitation difference?

  9. FAQSEXAMPLE #2 ANSWER • Yes • Homeowner must establish a new homestead within two (assessment) years of abandoning previous homestead • Homeowner may apply for portability in a future year on new homestead if, for whatever reason, they failed to apply for portability in the year they established the new home as their homestead • However, any reduction in assessed value on new homestead is applied in year transfer is first approved, and no refunds may be made for previous years.

  10. FAQSEXAMPLE #3 • Can there be any transfer of an assessment limitation difference when one or more owners remain in the previous homestead?

  11. FAQSEXAMPLE #3 ANSWER • Yes • Starting with the 2008 tax year, a homesteader may abandon a homestead by notifying the PA in writing by March 1 • This allows owners no longer living at the previous homestead to transfer their share of an assessment limitation difference • Also allows owners still living at homestead to transfer back in their share of the differential as of the next January 1st • Homestead must be reassessed on January 1st

  12. NEED MORE INFORMATION? • Additional FAQs and several examples of how to calculate the transfer of an assessment limitation difference are available on the Department’s web site: • http://dor.myflorida.com/dor/property/sb4d.html • You may also e-mail your questions to SB4D@dor.state.fl.us

  13. STATEWIDE PORTABILITY DATANUMBER OF TRANSFERS • Question: How many homesteads in Florida transferred an assessment limitation difference in 2008? • Answer: 39,571 • Ranged from 4 transfers in Dixie and Union Counties to 2,979 in Broward County

  14. TRANSFERS BETWEEN COUNTIES • Question: How may transfers occurred between counties (assessment limitation difference from one county transferred to a new county)? • Answer: 13,646 (or 34.5% of all transfers) • Ranged from 2 (50% of transfers) in Union County to 1,384 in Pinellas County (73.3%)

  15. DOLLAR VALUE OF TRANSFERS • Question: What is the dollar value of all assessment limitation differences transferred statewide in 2008? • Answer: $3.1 billion • Ranged from $99,273 in Dixie County to $291 million in Broward

  16. AVERAGE PORT AMOUNT • Question: What was the average transfer amount of assessment limitation differentials statewide in 2008? • Answer: $78,382 • Ranged from $16,901 in Madison County to $157,283 in Monroe County

  17. RELATION TO TAXABLE VALUE • Question: On average, what percentage of 2008 taxable value did transferred assessment limitation differentials represent? • Answer: One-fifth of one percent (.19%) • Ranged from .03% in Franklin County to 1.19% in Lafayette County

  18. WANT MORE INFORMATION? • Additional data on 2008 homestead portability is available on the Department’s web site.

  19. Q & A • Questions?