Dual Tax System in FloridaAll My Sons of West Palm Beach recently found an article posted on Housingwatch online explaining the dual tax system in Florida. And since, we serve many areas and neighborhoods in the state, we thought we would report back. The dual tax system in Florida means that if you live there fulltime and it’s your primary residence, you pay a certain tax and if you live there only part-time or own a vacation property in Florida like many of the snowbirds, you pay another type of tax.
Recently, Florida’s Supreme Court didn’t want to hear anything about this system being challenged, which means that means the appeals court that ruled for this system of tax in the sunny state will still stand. The dual tax system became law after a constitutional amendment called ‘save our homes’ passed in 1992 and took effect in 1995.
The way this tax system works is that if you own a home in Florida and claim homestead exemption because it’s your primary residency, your annual tax property assessment can’t increase by more than 3%. If you’re someone who uses your home in Florida as a vacation home, then your property appraisal can increase at the same rate as the housing market. Also, those who buy after prices have gone up significantly, even after a homestead exemption, will still pay taxes based on the higher market rate of when they bought. People who have lived in their homes for 10 years before the home price increases will have much reduced taxes.
During the boom years of the real estate market in Florida, this tax system created differences of $100,000 or more in market value, because people who lived in FL just saw a 3% increase while snowbirds could see increases of 10% and more.
When the real estate bubble busted, that leveled out things a little. Because of the declining value of many homes across Florida, property assessments dropped and appraisals flattened out for both fulltime and part-time residents.
Whether you’re a snowbird looking to move to the West Palm Beach area from one condominium to another or you’re a fulltime Florida resident wanting to move to a new home in West Palm Beach, the West Palm Beach local movers will help you transition easily. We’ll take care of every detail of your move, help you assemble and disassemble furniture, load our moving truck safely and carefully transport your personal belongings to your new home. Trust the professional West Palm Beach moving specialists for a great move.