REALTOR® ATTORNEY JOINT COMMITTEE
Give Your Customers the Information They Need for Property Tax Savings The Homestead Exemption application deadline is March 1. By: Bill Furst, Sarasota County Property Appraiser
T
he Florida Constitution and Florida Statute require that a person seeking a homestead exemption must be a permanent resident of the State of Florida as of January 1 and must own, and in good faith, make the property their permanent residence on January 1. If the closing happened after January 1, 2021, the buyer may apply for 2022. It is the responsibility of the applicant to demonstrate their permanent residence on the property and eligibility for the Homestead Exemption to the satisfaction of the Property Appraiser. The most common methods for doing so are:
Presenting a valid Florida Driver License or ID
registered to the homestead property· If the applicant chooses to vote, being registered to vote at the homestead property address. Presenting a valid vehicle registration registered to the homestead property if the applicant owns a vehicle. Since 2004, Federal law requires that driver licenses and other government-issued identification must be registered to a person’s permanent address. And both state and federal law require a person to be registered to vote at their permanent residence. My office gives special weight to these factors because all three require an oath or affirmation to a government agency that the person resides on the property.
If the applicant, or their spouse, owns property elsewhere in the United States or Puerto Rico, they must present proof that they or their spouse do not receive any residency-based property tax exemptions or credits on that property. Persons receiving such exemptions or credits are not eligible for homestead under Florida law.
AS REAL ESTATE PROFESSIONALS, YOU HAVE AN IMPORTANT ROLE TO PLAY IN THE HOMESTEAD PROCESS. Update your listings to reflect the current tax roll. Provide and explain the Property Tax Disclosure
Summary to buyers, as required by Section 689.261 Florida Statutes. Alert the closing agent to potential changes in tax escrow requirements due to the loss of the prior owner’s homestead and Save Our Homes Cap. Do not assume the seller’s exemption status will continue for the current tax year. If the seller was not eligible for the exemption on January 1 the homestead exemption and Save Our Homes Cap will be removed, and the buyers will end up with sticker shock when the tax bill arrives in November. Educate your customers. They must file for homestead on the new property The application is not part of the closing process The homestead does not automatically transfer from their previous residence The homestead is not inheritable Do not rely on whatever the always-ready-with-anopinion-and-rarely-accurate “they,” told you about exemptions. Direct your customers to knowledgeable Exemption Specialists for accurate, up-to-date information. • This article is meant for educational purposes only. It is not intended to serve as legal advise and should not be used as a substitute for consultation with an attorney.
16 | ELEVATE [ FEBRUARY 2021 ]
