Property Tax Relief? “Portability” May Help

If you’ve purchased a home here in Broward in recent years, you were probably disappointed to see how your property tax increased. After realizing over recent years that the local governments were benefiting from this windfall in higher tax revenues, enough of us have voiced our objections sufficiently to get the attention of numerous elected officials.

We attended a recent event at HomeBanc where Property Appraiser Lori Parrish spoke out in support of adopting a new constitutional amendment allowing homesteaded owners to maintain or “port” their current tax assessment to their next home under certain conditions. The homeowner would move their sheltered Save Our Homes (“SOH”) value from one primary residence to the next one in the same county under a governmental “local option.” This concept is called PORTABILITY.

Here is how it could work: Let’s say Andrew’s current home has a market value of $600,000 and a SOH assessed value of $348,000 -- meaning the difference ($252,000) is the amount sheltered by SOH. If Andrew sells that house and buys a new one for $800,000 (and qualifies for homestead), his initial assessment for property taxes would be just $548,000 (the math: $800,000 market value on the new home minus the $252,000 portable SOH difference). The bottom line to him would be a tax bill of about $9,800 instead of today’s tax bill of about $16,000 – a difference of $6,200 a year. Multiply that times the average American’s time in a home of about (6) years and Andrew would pay $58,800 instead of today’s rates of $96,000, a savings in just six years of $37,200.

According to Ms. Parrish, it wouldn’t be retroactive, but -- if Florida’s voters approve the amendment -- portability could provide freedom and tax relief for many families. If you support this idea, please contact your State Senator and State Representative to urge them to approve legislation placing this proposed Save Our Homes Portability Amendment on an upcoming statewide ballot. Unfortunately, four Senate bills and three House bills written to support tax portability all failed to pass and will NOT appear on the 2006 ballot. To voice your opinion, log on to www.thewillisgroup.com and click on the “Tax Portability” button, print out the suggested letter and mail to your elected State Senator and House representative. I’ll talk to you next month and as always – call me anytime if you or someone you know needs to talk about real estate.

* Selected references are from www.bcpa.gov

** Howard Willis is Broker/Associate and a Partner of Keller Williams Realty Partners SW. He and his partner Allegra have resided in Weston many years and are principals in the Allegra & Howard Willis Real Estate Group. Howard has a law degree and specializes in providing real estate consulting and marketing services to premium home and condominium owners and buyers. Call (954) 949-0444 with your questions and comments and to learn more about the next Real Estate Investor Seminar or to howard@thewillisgroup.com. Learn more about Allegra and Howard and the Willis Group at www.thewillisgroup.com.