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HOMESTEAD PORTABILITY UPDATE October 30, 2008

HOMESTEAD PORTABILITY UPDATE October 30, 2008. Howard Moyes Deputy Director Property Tax Oversight Florida Department of Revenue. PRESENTATION OVERVIEW. Senate Bill 1588 Portability FAQs Statewide Portability Data Q & A. SB 1588 PORTABILITY CHANGES SECTION 193.155(8), F.S.

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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?

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