Tampa Real Estate Insider Blog » Amendments to Property Tax Law

Hillsborough Property Appraiser Florida Portability Tax Laws

Rae Catanese — Sun, 18 Apr 2010 10:29:00 +0000

Everyone has money on their minds today, and one of the ways property owners can save money this year by taking advantage of our property new tax laws.

Here’s how you can save whether you are buying, selling or staying put in your own home.

AMENDMENT 1

Citizens of Florida approved Amendment 1. This property tax amendment has four parts. Below is what you need to know about each provision.

Portability - Allows Florida homeowners to transfer their Save Our Homes CAP to a new homestead. If you had a homestead exemption in Florida in 2007, and are applying for a new homestead exemption for 2008, then you may qualify.

To benefit from portability, an application is required. Click the link below to download the application. To learn more about portability, click here…. Portability Application and Instructions Portability Frequently Asked Questions

Additional $25,000 Homestead Exemption – If you have a homestead exemption, there is no action required on your part to obtain the additional $25,000 homestead exemption. The exemption will be automatically applied to your assessment for 2008 and every year after. The average savings for most homesteads in Hillsborough County is $250 – $300 depending on the millage rate (which won’t be set until September).

10% Assessment CAP for Non-Homestead property – An application is required for the 10% CAP. For more detailed information about Amendment 1, click here for the Department of Revenue website.

Thinking about buying or selling real estate in the Tampa Bay Area? Have a Real Estate question?
Feel free to email or call us 813-784-7744
Rae Catanese, Realtor.

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Investors Face Tax Liability on Short Sales-Tampa, Fl

Rae Catanese — Tue, 13 Jan 2009 00:47:45 +0000

Investors Still On Tax Hook

(Tampa Tribune (FL) (KRT) Via Acquire Media NewsEdge)

For homeowners in trouble, a short sale can be a lifesaver.

Lenders allow a house to be sold for less than is owed on the mortgage and then write off the rest. The homeowner just walks away.

Unless the owner is an investor, that is.

A short sale gets these owners off the hook for the loan, but many will get a surprise from Uncle Sam next tax season: an income tax bill based on the amount forgiven by the lender.

“I’m telling you this is going to be a big issue,” said Ralph Fisher, a Lutz attorney who specializes in foreclosure. “If you’re an investor, watch out.”

As the Bay area’s foreclosure rate steadily increases each month, short sales are becoming a popular alternative for financially strapped homeowners who owe more than their homes are worth.

Late last year, as lenders started to permit more short sales, President Bush signed the Mortgage Forgiveness Debt Relief Act. Before the legislation, all homeowners had to pay income tax on the loan amount written off by the lender. Under the new law, owners won’t have to pay taxes on that amount, up to the original mortgage amount on the purchase of the home. But that’s only if the home is their primary residence.

345 Bayshore Condo

The president and legislators apparently took no pity on investors who gobbled up properties by the dozens during Florida’s red-hot housing boom and now can’t pay their mortgages. Those buyers, if they’re lucky enough to get a lender to agree to a short sale, will be stuck paying the resulting income tax.

That goes for owners of secondary homes as well, said Sue Hales, spokeswoman for the IRS. Homeowners who work out a short sale should receive a 1099 tax form with their lenders, she said.

Once they get the form, she said, they should carefully check the values of the shortfall amount and the house value.

For example, if a homeowner owes $250,000 on a mortgage and the lender agrees to let him or her sell the home for $200,000, the lender would forgive the $50,000. But if the owner doesn’t live in the home, he or she will have to claim the forgiven $50,000 as income.

Until late last year, the average homeowner had never heard of a short sale. Now, neighborhoods throughout the Tampa Bay area are dotted with for sale signs denoting the home as a “short sale.”

Of the 16,677 Hillsborough County area homes listed for sale in the Multiple Listing Service, nearly 20 percent are marked as a short sale. Brad Monroe, a real estate agent and former president of the Greater Tampa Association of Realtors, said he thinks the actual number of short sales occurring is much higher. Agents in Pasco County report short sales are as high as 60 percent of the properties they’re selling.

With real estate generally slow all over Florida, some real estate agents and title companies are specializing in getting lenders to approve short sales. Borrowers facing foreclosure are jumping on the opportunity.

Getting a short sale approved at all is difficult, and lenders aren’t always willing to approve them. However, faced with millions of dollars in losses in foreclosures — plus court costs — they are more likely now to approve short sales. Still, real estate agents say the approvals are often delayed or denied.

When homeowners do get approved for a short sale, a lot of borrowers aren’t getting good tax advice from some of the real estate professionals helping them with their deals, said Mike Edenfield, an attorney who works with foreclosures.

“Most people aren’t aware of it at all,” he said of the income tax requirement. “Florida is typically a debtor’s paradise. But the IRS has a super priority. For the investor out there who bought a bunch of condos and is now in trouble, they’re going to get bitten.”

Need advice or have questions?

Contact Rae Catanese, PA, Licensed Realtor in Tampa: Phone 813-784-7744

To see more news articles from Tampa Tribune or to subscribe to the newspaper, go to http://www.tampatrib.com.

Hillsborough County Property Appraiser Speaking Engagement

Rae Catanese — Fri, 02 Jan 2009 19:52:10 +0000

The Tampa Real Estate Insider is very excited to announce that Rob Turner, the Hillsborough County Property Appraiser will be the guest speaker at our next Tampa Real Estate Meetup Group on January 14th, 2009!!!

Have a question about your property taxes? Here’s your opportunity to ask the property appraiser. Many new to the area looking to invest, as well as homeowners, will be able to ask questions regarding homestead tax exemptions and the recent Amendments to Property Tax Law

Rob Turner, a Virginia native, has been a Florida resident since 1985. After more than 20 years in the banking business, he was elected Property Appraiser in 1996 and was re-elected in 2000 and 2004.

Just a few of Rob Turner’s accomplishments include:

• National Association of Counties Achievement Award, Homestead Exemption Applications made through Title Insurance Companies, 2000
• IAAO MJC Conference Vice Chair in 2003 and Chair in 2004
• IAAO Presidential Citation, 2004-2005
• IAAO Headquarters Relocation Committee, 2005
• IAAO Audit Committee Member, 2005-2006
• Florida Governor’s Property Tax Reform Committee, 2006
• Elected to IAAO International Executive Board, 2008
• Mi-Forms 2007 User of the Year Government Award – Digital pen implementation, speeding staff data input to unprecedented levels, 2008

There is limited seating, so please RSVP right away!!!!

Visit the Tampa Real Estate Meetup site for details

or Call Michelle at 813-695-5677

Is Your Property Tax Bill Too High? Find out what your options are!

Rae Catanese — Tue, 16 Dec 2008 02:03:06 +0000

Is Your Property Tax Bill Too High? Property taxes and the process of disputing your tax bill is a question we are asked all the time.

With the economy in a downturn, homeowner’s in the Tampa Bay Area are looking for ways to cut costs and property taxes have become a major struggle for homeowner’s.

Find out what you can do to possibly lower your taxes.

From THE TAMPA REAL ESTATE INSIDER -Tampa, Fl

Income tax, sales tax, estate tax, excise tax, alternative minimum tax…and just when you thought you’d paid them all…along comes your property tax bill as a homeowner. But did you know that the National Taxpayers Union estimates that as many as 60% of homes are assessed for too high of a value, resulting in an incorrectly larger property tax bill? Chances are good you might be in that group of people paying too much, so taking the time to review your property tax bill could save you a nice chunk of change.

The good news is that it’s easy.

First, contact your local tax assessor’s office and ask for someone in the reassessment area. Find out when appeals are heard, and how the process for submitting a property tax appeal works. Additionally, ask for a copy of your property card. Review the card and confirm that the basic information about your property is correct. For example, is the square footage and number of rooms for your home accurate? If the number is incorrect, the county may change the assessment without a formal appeal. If everything on the property card is correct but the assessed value still seems too high, your next step is to gather the following documentation to support an appeal. And don’t be surprised if the assessed value is lower than what you think the market value for your home is–many counties use a formula which uses a percentage of market value to determine assessed value. Ask what the formula is, because an assessment which is less than market value still might be too high.

If you have a current appraisal that supports the value being lower using recent market-value information, many counties will accept a copy of the appraisal withthe appeal. If the appraisal is outdated, you can order a new one–just call me for a referral to a great appraiser. You can also visit the local assessor’s office or search online, and look through the public records for other homes that have similar features to yours, but have lower assessments.

Additionally, email me: realtyrae@yahoo.com a Realtor who knows your area. We will be able to give you current market information for your neighborhood, and help you see how your market value and assessed value stacks up against your neighbors’.

Submitting an appeal is generally a fairly simple process, but make sure to take the time to fill out all forms in advance and be prepared with your documentation if there is an in-person hearing that needs to take place.

More good news – according to the National Taxpayers Union, about 33% of property tax appeals succeed! Taking the time to review the accuracy of a tax bill could easily save you hundreds of dollars per year, adding up to thousands of dollars during the time you own your home.

Have a question about your property taxes? Here’s your opportunity to ask the property appraiser.

The Tampa Real Estate Insider is very excited to announce that Rob Turner, the Hillsborough County Property Appraiser will be the guest speaker at our next Tampa Real Estate Meetup Group!!!

There is limited seating, so please RSVP right away!!!!

Visit the Tampa Real Estate Meetup site for details

 Some information in this post provided by http://www.mortgagemarketguide.com/

How Amendment 5 may affect your Property Taxes-Florida

Rae Catanese — Mon, 20 Oct 2008 18:02:45 +0000

I found another news article pertaining to property taxes. These are very important issues to consider and will be on your ballot when voting November 4th. Considering the Tampa Bay housing market has dramatically changed the past couple years, we should think about our assessed values. The property appraisers tax homeowners based on the assessed value of your home. I’m sure you’ve noticed your tax bill isn’t as much as it was 2 years ago. This is caused by assesed values declining in our market.

Amendment 5 would lower property taxes

Critics say there are pitfalls

Tampa Bay Business Journal – by Janet Leiser Staff Writer

TAMPA — Florida’s business community isn’t expected to receive much relief from Amendment 1 that caps annual hikes in commercial property values at 10 percent, beginning next year.

“I don’t think it’s going to do a whole lot of good,” said Dan Woodward, VP of Highwoods Properties Inc. in Tampa.

In today’s sluggish economy, it’s unlikely property values will go up that much in a year’s time.

Then there’s Amendment 5, which if approved in the Nov. 4 general election, might bring more relief in the form of a 5 percent cap on property tax hikes on non-homesteaded property.

But a watchdog group contends other measures in the amendment would harm the economy and business community, making Florida’s sales tax one of the highest in the nation.

“There’ll be fewer inequities [in property taxes], but those inequities will be bigger than now,” said Kurt Wenner of Florida TaxWatch, a nonpartisan watchdog group in Tallahassee.

Florida Taxation and Budget Reform Committee member John McKay, a former senator from Bradenton, proposed Amendment 5 as long-overdue tax relief. Other supporters include the Florida Association of Realtorsand Gov. Charlie Crist.

‘It’s a tax increase’ Critics, including Florida TaxWatch, contend the amendment is a tax swap that could result in the largest tax increase in state history.

The taxation committee’s intentions were good, Wenner said.

“If the 5 percent cap was on the ballot by itself, it’d be a tough call for us,” he said.

Amendment 5 would reduce most property owners’ tax bills by an average of 25 percent to 35 percent, eliminating the local effort portion of school property taxes, said TaxWatch spokesman Robert Weissert.

Legislators would have to raise $11 billion from other sources to make up the shortfall in 2010, Wenner said.

Part of those billions would likely come from hiking Florida’s sales tax by 1 percent to 7 percent. Add in the local portion and the tax would amount to as much as 8.5 percent, Wenner said. It’s now 7 percent in Hillsborough and Pinellas counties.

A tax on professional services, such as legal, advertising and marketing, is also on the table to replace lost revenue.

The National Association of Independent Office Propertiesin Florida hasn’t yet decided whether it supports Amendment 5, said Jeff Rogo, who’s in charge of governmental affairs for the group.

see also: Amendments 3,4 and 6 also related to property taxes in the Tampa Bay Area.

If you would like to see what homes are selling for in your neighborhood you can search our Real Estate Website, covering all of Pinellas, Pasco and Hillsborough Counties.

You can also search your county’s local property appraisers website to look up the assessed value of your property