Ask Lori ... Parrish on Appraisal, June Edition

Dear Lori,
I’m a first time home buyer and I can’t seem to get a straight answer on how property taxes work.  The house I’m buying has current taxes due of $8,400.  When I use your online calculator, my purchase price with the Homestead Exemption calculates to $3,951.  How long would I pay taxes of $8,400 and when would the new tax rate start?
Amanda, via email

As a new home buyer you will inherit the seller’s current status for the 2009 tax year.  When buying property, you should look on our website (www.bcpa.net) to determine if the current year’s values have posted.  If they have not posted, you can e-mail me for an estimate of your property taxes.  The Property Appraiser does not levy or collect taxes, we cannot give guidance as to whether the property tax rate in your area will go up or down in the next year until the taxing authorities (Broward County Commission, County School Board, South Florida Water District or City Commission) give us the new rates and special assessment fees around August 5th, 2009.   At your closing, the seller will give you a deduct for the seller’s pro-rata share of the current year’s taxes.  You will be responsible for the entire bill in November 2009.

For estimating purposes, take the taxable assessed value, deduct any current year exemptions and multiply it by 2%.  Then, look at last year’s TRIM Notice and add back on any non-ad valorem fees for drainage, fire, garbage, etc.  The estimation is based upon the average Millage Rate of 20 mills (or 2%).

You may also use our online tax calculator found at www.bcpa.net for new home purchases only.  New home buyers can simply click on the “Home Buyers Tax Estimator” and follow the easy instructions.  Please remember the calculator is only an estimate based upon the mileage rates of 2008 until after August 15th when the 2009 rates will apply.   Also, this estimate does not include any non-ad valorem fees which the city or local taxing districts may charge.  In many areas there are some pricey fees so be sure to check the previous TRIM (proposed tax) notice and add those to the tax estimate.  These fees typically range from $150 - $500 or higher.  Your property taxes for the following year will be based upon your new assessment (approximately 85% of your purchase price) less any exemptions you apply for and are granted, and the new 2010 tax rates plus any non-ad valorem fees.

Should you have any question, please contact our office at (954) 357-6830.

Sincerely,
Lori Parrish, CFA

If you have a question for Lori, please email her at lori@bcpa.net or write to her at the Broward County Property Appraiser’s Office, 115 South Andrews Avenue, Room 111, Fort Lauderdale, FL 33301. (June 2009)