Florida Property Taxes For Canadians:
Florida tax laws may seem confusing or illogical to you. This is because they are both. If you are a logical, rational person understanding Florida Property Taxes will require a significant suspension of reality. Welcome to my world!
Lesson One: Calculate Your own Property Tax. This part is not too hard. Simply take the value of the property, multiply it by "the millage rate" of about .0017 and Voila! There's your property tax. If your value is $100,000, your tax will be about $1700 ($100,000 x .0017). If your value is $200,000, the tax will be about $3400.
Lesson Two: How Much Can the Taxes Increase Each Year? The "assessed value" can only go up 10%, even if the property goes up 50% or 75% or 100%. In our example, the $100,000 property can only go up $10,000 because 10% of $100,000 is $10,000. The tax can only go up $170, because .0017 x $10,000 is $170.
Your taxes will go up $170 if your property increases to $110,000 or if it increases to $200,000 or $300,000. It cannot go up by more than 10%.
Lesson Number Three: Are Canadians Discriminated Against? There is NOT one tax for Floridians and another tax for foreignors. Not really. Well, maybe. Sort of. Well, ok, but we rationalize it REALLY well. See, Floridians pay the same tax as Canadians or anyone else on all their real estate except for one piece of real estate: A principal residence that has been held for many years. There is a 3% annual limit on tax increases on a principal residence, while there is a 10% annual limit on all other real estate, whether it is owned by Floridians, Canadians or Martians.
This seems even-handed to Floridians, but it seems like discrimination to Canadians. When a Canadian decides to invest in an area you buy one unit. But here in America, the land of the free and the home of excess, we bought five of everything and our residence is only one of a large portfolio. Since we pay the same tax as you on all but one of a large number of properties, we feel we are being almost even-handed, and that almost even-handed is very good. Does that help any? I didn't think so.
Lesson Number Four: The Tax Bill. The government bills you in November of each year for taxes that are based on the value of the property on January 1 of that year. Because a lot can happen in a year to property values, this inevitably confuses everyone. Just remember, in November, 2008, they will send you a tax bill that multiplies .0017 times the value of your property on January 1, 2008.
Lesson Number Five: Which Year is the Bill For? (Please feel free to skip this. It is not pretty.) Are the taxes on the bill you get in November for the year passed or the year coming up? Yes! Huh?
In some counties, the taxes on the November bill are for the calendar year in which the bill is sent. In some counties, PART of the tax is for that calendar year and PART is for the next year. Why? See the next section.
Lesson Number Six: Why Are Taxes Complicated? No one person writes the tax laws. They are the result of a "tug-of-war" between different people who gain the ear of the legislators for just enough time to get a favorable tax bill passed. When another gets into power a different, completely contradictory bill gets passed. Then a third and fourth guy gets their bills passed and you end up with a hodge-podge of nonsense. If you look for an overarching theory you will make yourself crazy. You just have to read the laws without trying to make them make sense.
Okay, let's review all this. No, let's not. My head hurts. Scroll up and read it again. I'm going to go have a drink.
Florida Property Taxes for Canadians
Florida tax laws may seem confusing or illogical to you. This is because they are both. If you are a logical, rational person understanding Florida Property Taxes will require a significant suspension of reality. Welcome to my world!
Lesson One: Calculate Your own Property Tax. This part is not too hard. Simply take the value of the property, multiply it by "the millage rate" of about .0017 and Voila! There's your property tax. If your value is $100,000, your tax will be about $1700 ($100,000 x .0017). If your value is $200,000, the tax will be about $3400.
Lesson Two: How Much Can the Taxes Increase Each Year? The "assessed value" can only go up 10%, even if the property goes up 50% or 75% or 100%. In our example, the $100,000 property can only go up $10,000 because 10% of $100,000 is $10,000. The tax can only go up $170, because .0017 x $10,000 is $170.
Your taxes will go up $170 if your property increases to $110,000 or if it increases to $200,000 or $300,000. It cannot go up by more than 10%.
Lesson Number Three: Are Canadians Discriminated Against? There is NOT one tax for Floridians and another tax for foreignors. Not really. Well, maybe. Sort of. Well, ok, but we rationalize it REALLY well. See, Floridians pay the same tax as Canadians or anyone else on all their real estate except for one piece of real estate: A principal residence that has been held for many years. There is a 3% annual limit on tax increases on a principal residence, while there is a 10% annual limit on all other real estate, whether it is owned by Floridians, Canadians or Martians.
This seems even-handed to Floridians, but it seems like discrimination to Canadians. When a Canadian decides to invest in an area you buy one unit. But here in America, the land of the free and the home of excess, we bought five of everything and our residence is only one of a large portfolio. Since we pay the same tax as you on all but one of a large number of properties, we feel we are being almost even-handed, and that almost even-handed is very good. Does that help any? I didn't think so.
Lesson Number Four: The Tax Bill. The government bills you in November of each year for taxes that are based on the value of the property on January 1 of that year. Because a lot can happen in a year to property values, this inevitably confuses everyone. Just remember, in November, 2008, they will send you a tax bill that multiplies .0017 times the value of your property on January 1, 2008.
Lesson Number Five: Which Year is the Bill For? (Please feel free to skip this. It is not pretty.) Are the taxes on the bill you get in November for the year passed or the year coming up? Yes! Huh?
In some counties, the taxes on the November bill are for the calendar year in which the bill is sent. In some counties, PART of the tax is for that calendar year and PART is for the next year. Why? See the next section.
Lesson Number Six: Why Are Taxes Complicated? No one person writes the tax laws. They are the result of a "tug-of-war" between different people who gain the ear of the legislators for just enough time to get a favorable tax bill passed. When another gets into power a different, completely contradictory bill gets passed. Then a third and fourth guy gets their bills passed and you end up with a hodge-podge of nonsense. If you look for an overarching theory you will make yourself crazy. You just have to read the laws without trying to make them make sense.
Okay, let's review all this. No, let's not. My head hurts. Scroll up and read it again. I'm going to go have a drink.
David Finkelstein is a Lawyer, a CPA and a Realtor who has practiced for 30 years, 22 of those on the West Coast of Florida.
 

 


 

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