Real Estate Investor · West Palm Beach, FL · Member since 2008 · 13 posts · 2 votes
We are thinking about moving out of our triplex in FL and that would mean loosing our homestead exemption. It isn’t clear to us what will happen to our tax liability and that makes the numbers impossible to calculate. I see many websites stating the property valuation “could”(?) convert to the full valuation but I know their is language in the law that states that a non owner occupied property has a max adjustment of 10% per year. So, are our taxes going up by 10% or are they quadrupling?
Realtor · Atlanta, GA · Member since 2021 · 239 posts · 120 votes
1y
@Zachary Wolz Hey, I'm based in Georgia but familiar with this issue. In both Florida and Georgia, dropping your homestead exemption means losing the tax break tied to owner occupancy. And yes, in Florida, your assessed value can jump up to 10% annually for non-homestead properties. If your market value is higher than your assessed value right now, your taxes could definitely go up. You should call or go into your Property Appraiser’s Office... they’ll be able to tell you how your tax bill will change once you move out.
We are thinking about moving out of our triplex in FL and that would mean loosing our homestead exemption. It isn’t clear to us what will happen to our tax liability and that makes the numbers impossible to calculate. I see many websites stating the property valuation “could”(?) convert to the full valuation but I know their is language in the law that states that a non owner occupied property has a max adjustment of 10% per year. So, are our taxes going up by 10% or are they quadrupling?
If you are keeping it in your own personal name (assuming that is what you're doing now), yes it will go up by roughly around 10%, especially if you are well below the market value. If you transfer it into a LLC, then you can expect the assessed value to go up to market (probably will be much bigger than 10% if you have had it for a long time). Either way, ensure what it will most likely be by contact BCPA as @Lateefah Mathews suggested