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Florida Property Taxes
The key to understanding how different taxing authorities (either cities or counties in Florida) calculate your property tax, you have to understand the two factors used in taxation. The first is the assessed value of your home, and the second is the total millage rate for your local city or county. The millage rate is a published amount per $1,000 that is used to calculate taxes on property. The formula for calculating your annual tax bill is millage rate multiplied by taxable value.
Residents of Canada or any other country such as the UK who purchase property in the State of Florida are not treated any differently to US nationals and do not receive higher property tax rates for being non nationals.
United States residents, Canadian residents and others who own property in the State of Florida including those who are primary residents are taxed with the same millage (tax) rates that are set by local governments and other taxing authorities.
Canadians who sell real property anywhere in the United States of America are affected by a Federal Law known as the Foreign Investment in Real Property Tax Act of 1980. This law requires that the sellers pay a 10% tax on the gains from the sale of the property. There are some exemptions that can be researched on the United States Department of the Treasury website.
The confusion with real property taxation in the State of Florida comes from what is known as the Homestead Exemption and what is known as Save Our Homes that only apply to a Florida residents home that is their primary residence.
Florida property owners who are residents of the State of Florida are able to apply for what is known as the Homestead Exemption that as of January 2008 provides a $50,000 reduction on the taxable value. This exemption only applies to the applicant's primary residence. For example if the county determines your primary residence has an assessed value of $200,000 and you qualify for the exemption you would pay property taxes based on a $150,000 taxable value.
Florida residents are eligible and receive the Homestead Exemption on their primary residence also receive what is known as Save Our Homes. Save Our Homes places a limitation of 3% on annual assessment increases on homestead exempt property. The taxable assessed value of the property can then not increase more than 3% or the percentage change in the Consumer Price Index.
Starting in 2009 those who own non-homesteaded property including homes, condominiums, and vacant land and other forms of real property which includes residents of the State of Florida are eligible to apply for a limitation of 10% on annual assessment increases.
Property tax rates in the State of Florida are based on the value of the property and the millage tax rates levied by the local governing and taxing authorities no matter where you live in the world. But if you are a Florida resident you are extended certain Florida property tax exemptions, however these benefits are only available to the primary residence.
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Florida Property Taxes
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