Decrease in Florida Real Estate Taxes

According to data presented to the Senate Finance and Taxation committee, properties taxes have dropped by 2.28 billion which equals 7.5% decrease over the past three years. That is great news for Boca Raton and surrounding area homeowners and buyers. The efforts of lawmakers starting in 2007 with roll backs and caps on property taxes, the January 2008 constitutional amendment and declining home prices have all contributed to the property tax decrease.

However, taxes have not dropped as much as hoped for as a result of the recapture rule that was adopted by Florida voters with regard to the “Save Our Homes Amendment  in the 1990’s which caps assessment increases to no more than 3 percent when home values are appreciating and increases assessments by up to 3% if home values decline. The 2008 portability provision has not saved as much either because home prices have declined. The portability provision lets primary homeowners take a part of their accumulated Save Our Homes benefits with them when they move to another house. This is intended to help offset all or most of the difference between the market value and taxable value of their new home. oHowe Declining home prices in the last few years has meant that less homeowners have been moving and purchasing new homes to take advantage of the portability savings as well.

Home value decreases have also meant that fewer non-homestead buyers and businesses have been able to take advantage of the 10 percent cap on annual assessments as well under the 2008 amendment.

Even so, the property tax decrease of 7.5% is good news for home buyers interested in purchasing Boca Raton real estate.  If you are interested in buying or selling Boca Raton or surrounding area real estate, please contact us today.

Source: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=232096