Florida's Amendment 1 – What It Means To You

March 14, 2008,

On January 29, voters spoke loud and clear. Amendment 1 passed with nearly 65% of the vote – an astounding percentage. With the passage of Amendment 1, many people will be seeing some major changes in their tax bills. Are you one of them? Here's quick rundown on the four sections of Amendment 1, what each section is, and how it might apply to you. Part 1: Portability The first part of Amendment 1 allows those who received a homestead exemption to transfer their Save Our Homes benefit to a new home under certain conditions. Under the old system, many people were "trapped" in their homes – unable to move because a move would mean a drastic increase in their taxes. The large increase in tax was due to the yearly 3% cap that a homesteaded property is privy to. So if property values increased more than 3% every year, a homesteaded property's assessed value capped out at 3%. You can see that a homeowner that has resided in a home for a number of years would see a substantial tax benefit by means of a lower assessed value. Under the old plan, each time you purchased a new home, you lost any accumulated tax benefit from your old home and the assessed value reset to the market value of your new home. Under the new amendment, you get to take your accumulated tax benefit with you as long as you apply it to another homestead within two years. A seller that had homestead exemption in 2007, and who either sold or abandoned their homestead in 2007 will be eligible to take their Save Our Homes benefit with them if they move to a new home in 2008 and apply for homestead portability. From 2008 onward, you can take your Save Our Homes benefit with you as long as you transfer it within the same year or the following year. In order to receive this benefit, you must apply by March 1, 2008 to your property appraiser for your new homestead exemption and for the transfer of the "Save Our Homes" benefit to your new homestead for 2008. In order to take advantage of portability, you have to make two separate applications – one for your new homestead exemption, and one to transfer the Save Our Homes benefit for 2008. You'll find the application forms on the Florida Department of Revenue website. Here's a quick FAQ regarding portability: 1. How much is the portability benefit worth? You can transfer up to $500,000 of portability benefit to a new homestead. If your new homestead is worth more than your old one, you transfer the dollar amount. If your new homestead is worth less than your hold one, you transfer the percentage. For instance: your current homestead is assessed at $300,000, but under Save Our Homes, $150,000 of that is exempt. If you move to a new home that is assessed at $500,000, your portability benefit will be $150,000. If you move to a new homestead that is assessed at $200,000, your portability benefit will be 50%, or $100,000. 2. Is the change of homestead and transfer of Save Our Homes automatic? No. You need to apply for each benefit separately. 3. How do I apply for portability? You simply turn in a completed application form to the office of the county appraiser in the county in which your new homestead is located. 4. Does portability only apply if I buy a new home? No. If you already own a second property, you can transfer your homestead exemption to one property to the other and transfer the Save Our Homes benefit as well. Make note that your Homesteaded property must be your primary residence. 5. Am I eligible for portability this year? If you filed to give up your old homestead after January 1, 2007 and are claiming a new homestead for 2008, you're eligible, but you have to file your application for portability by March 3, 2008. Part 2: Additional $25,000 Homestead Exemption The second part of Amendment 1 is an additional $25,000 homestead exemption. The exemption is available to anyone who is already claiming the original $25,000 exemption. In order to claim it, you don't have to do anything. It will automatically be applied to your 2008 tax assessment. In Hillsborough County, the average savings will be $250-300 per household. This is how it will be calculated: First 25,000 of value – exempted from taxes Second 25,000 of value – fully taxable Third 25,000 of value – exempted from all taxes except the school taxes Why isn't the second 25,000 of value exempt? It is designed to protect cities and towns within Florida that may have many lower assessed property values, particularly in more rural areas. If the exception applied to the second 25,000 of value, many of these cities and towns would not collect enough revenue to run their local governments. Why does the second 25,000 exemption still allow for the schools taxes to be collected? Simple answer is that the revenue is needed to fund our schools. Part 3: Tangible Personal Property Exemption According to the DOR: Tangible personal property is all goods, chattels, and other articles of value. It includes: machinery, equipment, furniture, fixtures, signs, window air conditioners, supplies, leased, loaned, borrowed, or rented equipment used in a business, mobile home attachments on rented land (carport, screened porch, Florida room, etc.) furniture and appliances in rental properties. The third part of Amendment 1 is a $25,000 exemption on all tangible personal property. Business owners must complete the TPP return and file it by April 1 each year. If it's determined that your total tangible personal property is less than $25,000, you won't have to file again. The first $25,000 of tangible personal property is exempt from taxation under Amendment 1. Part 4: 10% Non-Homestead Assessment CAP The final part of the amendment is a 10% limitation on assessment of non-Homestead property, both residential and non-residential. As of January 1, 2008, state law requires that all non-homestead property be assessed at just market value, and be reassessed annually, but the change resulting from the reassessment can not exceed 10% of the current assessed value, and the assessed value can not exceed the market value. In 2009, owners of non-homestead property will be able to apply for the 10% non-homestead assessment CAP. In practical terms, that means that as of January 1, 2008, the assessed value of your non-homestead property will be equal to its market value. If your property is appraised at $350,000, it will be assessed at $350,000 for tax purposes. In 2009, if you apply for the 10% CAP, the property assessment can not be any higher than $385,000 – 10% above this year's assessed value – no matter how much the market value increases. If the market value of the property is less than that, then the assessed value can be no higher than the market value. You'll find any forms needed to apply for the various exemptions at the DOR web site or at your county appraiser's web site.

       Using Services Of A Real Estate Agent For Your New Home

Buying a house is a major decision of your life. It is not something that you can afford to take lightly. You must be well informed as to how to go about your search for a new home. Finding your dream home can be a stressful process. To understand what to look for, you first need to determine what you can afford, keeping in mind what you desire in terms of space and facilities in your new home. You must perfect the art of negotiating and know how to protect yourself as you move on towards acquiring new property. When you plan to buy a new home, the best way to get a good deal and avoid hassles involved in buying property suitable to your liking and budget, is to use the services of a real estate agent. These agents are affiliated to and work via real estate brokers; without this they cannot conduct real estate transactions. They work on behalf of the broker who stands legally responsible for their professional conduct in the transactions. All listings available with the agent in fact belong to the broker. Your agent needs to be licensed in the state where they operate. There is no federal/national license for real estate agents. For obtaining a license, an Indiana real estate agent has to successfully pass a licensing examination after having completed 54 hours of instructional training at an accredited school. That apart, for maintaining this license he is required to complete 16 credits of continuing education bi-annually. Make sure that your agent is also a Realtor i.e. a member of the National Association of Realtors (NAR). Realtors are bound to maintain high professional standards and adhere to a strict code of ethics set by the NAR. The quality of services provided in return for what you pay depends on the capabilities of the real estate agent you choose. When you engage the services of an agent to buy property, he is legally bound to work exclusively in your interest, which includes: • Exercising due care and skill while performing his duties • Keeping all his dealings with you (the client) honest, fair and above board • Inform you of all facts affecting the desirability and value of any property under your consideration, as soon as such information is discovered/becomes known to him. • In the exceptional case when he acts the role of a ‘limited agent' i.e. represent the interests of both the seller and the buyer, it must be disclosed to and authorized in writing by both buyer and seller to allow the transaction to proceed as ‘valid and acceptable'. When you buy any property through an agent you pay quite a handsome amount to him as commission, which is built into the selling price of the house. The sale price includes the commission of the listing broker, which is usually 7 percent of the price. Your agent is paid out of this, the agent commission being split between the seller's and the buyer's agent. Using services of a real estate agent enables you to glide safely through the haze of offers, counter offers, inspections, amendments etc. with due safeguards to your interests. It can save you from making costly errors while buying your new home.

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Cape ranks as fourth fastest growing city   In one year, 11,403 people moved to Cape Coral. That 8 percent jump in population has made the Cape the fourth fastest-growing city in the United States, according to census figures released today analyzing the population of every city in the country. None of Lee County's other cities -- Fort Myers, Fort Myers Beach, Sanibel and Bonita Springs -- saw much growth in that year, 2005-06. "I'm not surprised at the growth and investment that we're seeing in the Cape," said Mike Quaintance, president of the Cape Coral Chamber of Commerce. "It's another feather in our cap." Cape Coral placed behind Port St. Lucie; McKinney, Texas; and North Las Vegas and just above Gilbert, Ariz. Fort Myers and Bonita Springs, each of which saw its population inch up by about 2,000 people, were no match for Cape Coral's rapid growth to 151,389 residents by last July. Bonita's total population was 40,877, while Fort Myers' was 60,531. Meanwhile, Fort Myers Beach and Sanibel Island saw a 4 percent drop -- a decline of about 250 residents for each city. Fort Myers Beach's population was 6,559, while Sanibel's population was 5,812. Today's census figures counted only cities, not unincorporated areas, so populations for areas that have seen quick growth such as Lehigh Acres and south Fort Myers aren't available. Cape Coral's growth helped propel it to the list of Florida's top 10 cities. It ranked ninth, just behind Tallahassee. The new numbers could help convince more businesses -- especially chains -- to move into the city, Quaintance said. "The population growth was so quick that the business growth couldn't keep up with it," he said. Mike Jackson, director of the city's economic development department, said the new data just solidify the city's motto as the "Growth Engine of Southwest Florida." "This is exciting for us because it demonstrates a trend of economic and population growth," he said. Jackson said the fast growth prompted the city to ramp up the timeline for its controversial water and sewer projects. The neighborhoods where those lines are being installed also get newly paved roads when the construction is finished, he said. Cape Coral city officials estimate the current population at 168,698. Commercial growth is still catching up. Since 2005, the city has attracted chain and big-box stores such as Kohl's (its first), Lowe's Home Improvement (its second), The Home Depot (its first and one of the biggest in the state) and BJ's Wholesale Club (its first). And in the final sign that the Cape has arrived as a metropolitan player, a Starbucks is coming. There's also talk of bringing two more. Cape's growth isn't good news for some Cape Coral residents, though. Ralph LePera, former president of the Cape Coral Civic Association, said the growth has become overwhelming. "Maybe it's time for a slowdown," he said. "All growth is not good." But LePera hopes the commercial growth will continue. "If it's just more retail and restaurants that pay low, it's not good," he said. "It would be nice to see some light industrial or even a corporation." Cape Coral resident Wayne Hood said the city needs to look at how it grows in a smarter way. "I think we need to improve what we have before we jump off the deep end," he said. 10 fastest growing cities FASTEST GROWTH FROM 2005-2006 • North Las Vegas, Nev.: 197,567; 11.9 percent growth • McKinney, Texas: 107,530; 11.1 percent • Port St. Lucie: 143,868; 9.9 percent • Cape Coral: 151,389; 8.1 percent • Gilbert, Ariz.: 191,517; 7.8 percent • Grand Prairie, Texas: 153,812; 6.6 percent • Peoria, Ariz.: 142,024; 5.8 percent • Cary, N.C.: 112,414; 5.1 percent • Denton, Texas: 109,561; 5.1 percent • Lancaster, Calif.: 140,804: 5 percent 10 largest cities in U.S. • New York City: 8,214,426 • Los Angeles: 3,849,378 • Chicago: 2,833,321 • Houston: 2,144,491 • Phoenix: 1,512,986 • Philadelphia: 1,448,394 • San Antonio: 1,296,682 • San Diego: 1,256,951 • Dallas: 1,232,940 • San Jose: 929,936 Lee County's city populations • Cape Coral: 151,389 • Fort Myers: 60,531 • Bonita Springs: 40,877 • Fort Myers Beach: 6,559 • Sanibel: 5,812 Cape ranks No. 1 in commercial growth As if the businesses piling into Cape Coral didn't know it, a national magazine confirmed the city as a hot commercial growth area. Inc. magazine ranked the Cape Coral-Fort Myers area No. 1 in its midsize city list of "Best Cities for Business" the second year in a row. Relying on government statistics, the magazine based the ranking on business growth measured by employment numbers. Cape Coral's unemployment rate for 2006 sat at 2.9 percent. More than 130 commercial building permits with 2,178, 562 square feet of space met approvals from Jan. 2005 to March 2007. "These aren't just construction businesses and workers coming into the city," said John Jacobsen, owner of Intergraphic Group Inc. "These are businesses with jobs in all the services needed in a city from bankers and lawyers to restaurants." Considering that a million square feet of industrial space, a million square feet of office space and 4 million square feet of retail space has been built, is under construction or is planned on Pine Island Road alone, the ranking appears justified