If you purchased a home in Florida in 2005, you’ll want to file for the Florida Homestead Exemption. Not only will you save approximately $400/yr in taxes, you’ll also cap the amount your taxes can go up each year. If you do not file, there is no cap.To be eligible you must have purchased the home by December 31, 2005 and use the home as your primamry residence. Lee County Florida has a Homestead Exemption Form you can download. Florida is very strict about the property being your primary residence, and they will prosecute you if you cheat. Lee County hires investigators who search for rental listings on the Internet, etc. They even invite the public to tell if they suspect a neighbor is cheating on the exemption, so you only want to fill out this form if you really qualify.
If you purchased in 2006, you’ll have to wait until next year to file. If you purchased prior to 2005 and have not filed yet, you still can. If you qulaify, it’s a wise decision to file. Do not wait as it can cost you much more than the $400/yr because you won’t get the cap.
Florida has two bills pending in the legislature regarding Homestead Exemption Portability. We’ll cover what these bills mean to you in a future post.