Florida’s property taxes go wacky in housing slump

TALLAHASSEE, Fla. – July 7, 2009 – The depressed housing market has brought problems with Florida’s property tax system to the forefront. Homeowners in counties like Miami-Dade must prepare for substantial hikes in property taxes to cover budget deficits; and buyers of foreclosed properties are finding that, despite purchasing the homes at a discount, they must pay taxes on the home’s original value.

Although the state implemented a “homestead” program to prevent property assessments from rising more than 3 percent per year, the assessment is raised when the residence is sold – meaning homeowners in the same neighborhood are not in line when it comes to their tax bills.

Real estate professionals are expressing concern about tax issues affecting buyers of foreclosed homes, as they generally can afford taxes on the reduced price only; but experts note that sales of foreclosed properties have not yet been affected by this tax policy.

Source: 
Time (06/29/09) Padgett, Tim

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