What to know about property taxes, by Adriana Montes.

By Adriana Montes

What to know about property taxes

When it comes to taxes, especially homeownership taxes, I believe property taxes are among the most discussed type of taxes today. And for a good reason.

You see, the counties, municipalities, and school districts all depend on this tax. Therefore, it doesn’t matter where you are buying your home; when gearing up to be a homeowner, you must consider how much you will be paying in property taxes.

SO, WHAT IS THERE TO KNOW ABOUT PROPERTY TAXES?

This is just a tax like all others, and failing to meet your obligations… there’s a penalty for that.

You probably know this already; what you may not know is that the property tax varies from state to state. They go by city by county and overall by state. Therefore, failure to pay the property taxes could cost you your home through foreclosure. In Florida, for instance, the average property tax rate is 0.98% which is slightly lower than the national average of 1.08%. In a nutshell, this means that the average homeowner in Florida pays $1752 in property taxes annually. Another important factor to note about the property taxes in Florida is that they are implemented in millage rates which are 1/10 of a percent. This simply means that for every $1000 in home’s value, you will pay $1 in taxes.

ARE PROPERTY TAXES PAYABLE WITH A CREDIT CARD?

Yes, actually, they are. Some cities allow homeowners to pay their property taxes using a credit card, but it is done using a third party who facilitates the process in most cases.

In Florida, for instance, Payments Inc facilitates this process allowing you to pay your property taxes using your debit or credit card.

To many homeowners who are hearing this for the first time, this may sound like good news. But remember, just because you can use credit cards, it doesn’t mean that you should.

Typically, the payments facilitator, this third party, usually charges anywhere between 2-3% fee on your credit card. That’s something you should consider.

YOU CAN GET A TAX BREAK

This is the good stuff. Buying a home is not for the faint-hearted. It is an expensive process, not just financially but emotionally too.

But one of the many benefits of homeownership is that you get to enjoy some tax breaks, deductions, and rebates from time to time.

When filing your federal income tax return, you can deduct what you paid in property taxes throughout the year. This is helpful as it reduces the amount of tax you owe.

In fact, you can even qualify for a refund, but you have to earn it. Just don’t be late paying your taxes or even forget to pay.

TAX EXEMPTIONS

In some circumstances, it may be possible to get tax exempted. However, keep in mind that tax exemptions vary from state to state and also by local jurisdictions. Thus, be sure to check with your local tax assessor for property tax information.

To be specific, military veterans qualify for tax exemptions. Smithtown, New York, residents qualify for the exemption for buildings or renovations for a grandparent or elderly parent.

WHAT ABOUT IN FLORIDA?

It depends on whether you meet specific criteria articulated within the Florida tax laws. So the simple answer is yes- it is possible to get property tax exemptions in Florida. One of the ways you can qualify is by appealing the taxable value of the property. For example, you can appeal if you think your property has been appraised at a higher value. If the appeals board agrees and reduces the amount/value of your property, the property tax you owe will undoubtedly be reduced.

To read more about property appeals, visit the Florida Department of Revenue guidance homeowners seeking to file such an appeal.

HOW DO PROPERTY TAXES WORK?

Your lender will roll the property tax payments in with a mortgage. So when you are making the mortgage payment at the end of the month, you will also be paying the property tax.

Property taxes are due annually; however, in some states and counties, the taxpayer can make payments in installments rather than making one lumpsum payment.

If none of these methods appeal to you, you can deposit you deposit the monthly amounts due to a high-yielding savings account which will earn you interest until you pay the bill at the end of the year.

Homeownership is the best decision you’ll ever make, which is why I encourage you to educate yourself as much as you can about these different types of taxes. It will be better and easier for you to rather than being caught off guard. If you want to know more about homeownership taxes, talk to Adriana Montes JD MBA, DRE#3096165, our VIP Agent in Florida. Alternatively, reach out to Eric Lawrence Frazier MBA, a mortgage professional with over 30 years of experience. You can reach Eric Lawrence Frazier MBA today at 800-261-1634 ext. 703.

ABOUT ADRIANA MONTES JD MBA

Adriana Montes is a real estate broker/owner and director of divisions of REO Listings, Acquisitions, Rentals, Flips at Florida Dreams Realty Group. A dedicated professional with a long tenure in the default sector includes over 20 years of experience servicing and selling over 1500 homes and over $300 million in volume within the last ten years. To find out more about Adriana, go to; https://www. thepowerisnow.com/adriana-montes/.

ABOUT THE POWER IS NOW MEDIA

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, headquartered in Riverside, California. We advocate for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com

Sources

https://www.investopedia.com/articles/tax/09/calculate-property-tax. asp#:~:text=Property%20taxes%20are%20calculated%20by%20taking%20the%20 mill%20levy%20and,local%20real%20estate%20market%20conditions. https://www.gobankingrates.com/taxes/deductions/what-to-know-about-propertytaxes/ https://www.nolo.com/legal-encyclopedia/are-you-getting-all-your-florida-propertytax-breaks.html

ERIC LAWRENCE FRAZIER MBA

Vice President and Mortgage Advisor Office: (800) 261-1634 ext. 703 Fax: (314) 264-0211 NMLS#461807 eric.frazier@fbol.com

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