Buying Your Home - Property Taxes

Sarasota-specific:        

When are Sarasota property taxes paid? Sarasotan's receive their tax bills in the mail at the beginning of November and that tax bill is for that present year from January thru December so we pay our taxes in arrears.

What is the Homestead Exemption and the requirements? You are entitled to a Homestead Exemption if, as of January 1st of the year for which you are applying. 1) You are a permanent resident of Florida. 2) You hold legal title to your property. 3) that instrument of title is filed with Sarasota County in the Official Records. 4) You reside in your residence and in good faith make the same your permanent residence, or the permanent residence of another or others legally or naturally dependent upon you. 

What is "Save Our Homes"? Save Our Homes is an amendment to the Florida Constitution that the voters passed in 1992. A taxpayer AUTOMATICALLY receives the Save Our Homes protection starting the year after first obtaining a Homestead Exemption. This law limits the increase in assessed value for properties receiving the Homestead Exemption to no more than 3% per year or the increase in the Consumer Price Index (CPI), no matter how much larger the increase in market value would otherwise be.       

*Above answers from Sarasota Co. Tax Collector's Frequently Asked Questions.

Are taxes on second homes deductible?
Mortgage interest and property taxes are deductible on a second home if you itemize. Check with your accountant or tax adviser for specifics.

Do all loans require impound accounts?
If you are taking out a FHA or VA loan, the lender can require an impound account to pay real estate taxes and hazard insurance premiums, as with a standard loan. Most conventional loans do not require an impound account.

Are property taxes deductible?
Property taxes on all real estate, including those levied by state and local governments and school districts, are fully deductible against current income taxes.

Where can I learn more about appealing my property taxes?
Contact your local tax appraiser's office to see what procedures to follow to appeal your property tax assessment. You may be able to appeal your assessment informally.  Mostly likely, however, you will have to go through a formal tax-appeal processes, which begin with an appeal filed with the appropriate assessment appeals board.

How do property taxes work?
Property taxes are what most homeowners in the United States pay for the privilege of owning a piece of real estate, on average 1-1.5 percent of the property's current market value. Locally in Sarasota, depending on the property of course, it feels more like .75%. These annual local assessments by county or local authorities help pay for public services and are calculated using a variety of formulas locally and from the state.

What is an impound account?
An impound account is a trust account established by the lender to hold money to pay for real estate taxes, and mortgage and homeowners insurance premiums as they are received each month.

How is a home's value determined?
You have several ways to determine the value of a home. An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $300 for a $250,000 house. A comparative market analysis is an informal estimate of market value performed by a real estate agent based on similar sales and property attributes. Most agents offer free analyses in the hopes of winning your business. You also can get a comparable sales report for a fee from private companies that specialize in real estate data or find comparable sales information available on various real estate Internet sites.