Some common questions home owners ask me are: what is “homestead” and what are “tax millages”.
When I first heard the word “homestead” it was probably in a cowboy movie, and I thought it had to do with cattle drives and rodeos and saddles. What a “homestead” really is, is just what it says. It’s the place you call “home”. It’s the house you occupy.
A barn can’t be a homestead. Nor can a summer cottage, rental, or that vacant lot up the road. A “homestead” is your primary
The homestead exemption is a reduced tax due to an “exemption” from the State.
In the State of Florida, there is a value established for each unit of real property by a county property appraiser. This is known as assessed value. The State of Florida allows a homestead exemption in the amount of $25,000 to be deducted from the assessed value to arrive at a taxable value.
Filing an application
Any person who has legal or equitable title to real property in Florida and resides at that property as their permanent legal residence is eligible for a homestead exemption. First time applicants for the exemption must apply in person at the county property appraisers office by March 1st of the year they are claiming the exemption.
The property must have been owned by the applicant on or before January 1st of that year. Renewal requirements vary from county to county. Each dollar of the taxable value is multiplied by a millage rate to calculate the real estate taxes for the property. How it works is, ten mills equals one penny (.01), twenty mills is two pennies (.02) and twenty five mills is two and a half cents (.025).
For example, a property with an assessed value of $1000,000 with a homestead exemption and a millage rate of 25 mills would result in a tax of $1,875 as follows: $100,000 - $25,000 = $75,000 X .025 = $1875.
There you have it…homestead exemptions and tax millages. What could be easier?