By: Douglas Haag, Assistant City Manager, Finance Division

What do the new property tax law changes mean to you?
On Jan. 29, 2008, voters approved an amendment to the Florida Constitution effecting the following changes to the State’s property tax system.

Expanded Homestead Exemption: The Homestead Exemption has been increased from $25,000 to $50,000. The estimated annual savings to the average taxpayer in Sunny Isles Beach is $250. However, homes valued at less than $50,000 will not benefit, while those with a value between $50,000 and $75,000 will only partially benefit. And, the extra exemption does not apply to School Board taxes. If you are currently receiving a Homestead Exemption you will automatically be upgraded to the higher amount – no action is required. You will see the change on the notice that the property appraiser mails in August stating the taxable value of your residence. The actual tax reduction will appear on your tax bill in November 2008.

If you’ve recently purchased a home and have yet to receive the benefit of the Homestead Exemption, you will need to file a first time application, which includes the expanded Homestead Exemption. You can obtain a copy by going to the Miami-Dade County Property Appraisers web site http://www.miamidade.gov/pa. Copies are also available at the Information Center located in the Government Center at 18070 Collins Avenue, Sunny Isles Beach, FL 33160. Unfortunately, the deadline (March 3, 2008) has already passed for receiving this benefit on your 2008 tax bill. The Property Appraisal Department will accept late applications up to mid-September. However, these applicants will have to pay a $15 non-refundable fee to the Value Adjustment Board.

If you are buying a home in Florida for the first time, do not rely on the seller’s current property taxes as the amount of taxes that you will be paying.

Portability: The portability feature is completely new and allows you to continue receiving your Save Our Homes (SOH) cap even if you wish to move elsewhere in the City or State (Of course, we hope you’ll continue to reside in our wonderful city for a long time!) The Save Our Homes benefit works by limiting the increase of the assessed value of a home to a maximum of 3% regardless of any increase in market value. Under the new law, homeowners can transfer up to $500,000 of this Save Our Homes benefit even if you are buying a less expensive home.

For 2008 Applications: If you moved into a new home as of January 1, 2008 and previously benefited from a HX in 2007 you can port the “Save Our Homes” benefit for 2008.

For applications in 2009: If you move into a new home after January 1, 2008, and by January 1, 2009, and had a previous homestead exemption in either 2007 or 2008, you must apply for your 2009 homestead exemption and the transfer of your "Save Our Homes" benefit by March 1, 2009. In future years, you will be able to transfer your “Save Our Homes” benefit to a new home if you had the homestead exemption on your old home in either of the two preceding years. In order to qualify, you will need to complete the Portability Application Form. As before, you can obtain a copy by going to the Miami-Dade County Property Appraisers web site http://www.miamidade.gov/pa. Copies are also available at the Information Center located in the Government Center. To help you estimate this benefit, the web site also has a Portable Cap Calculator.

Cap on Non-Homestead Property: Starting in 2009, non-homesteaded properties will be eligible for a 10% cap. To receive this benefit, property owners will have to apply. The application will be available in October 2008 for the 2009 tax bill. This 10% cap will not apply to taxes levied by the School Board.

Tangible Personal Property Tax Exemption: Tangible personal property taxes apply only to certain taxpayers in Florida – typically businesses. A $25,000 exemption is available for business equipment such as computers, office furniture and fixtures is available for 2008. To receive this benefit you must file your Tangible Personal Property Tax Return by April 1st.

More About Your Tax Bill: Your tax bill includes taxes for Miami-Dade County, Miami-Dade School Board, Special Districts such as Fire and the City of Sunny Isles Beach. The portion that the city receives is only about 15%. Your city tax dollars go toward police services, open space & parks, city beautification, recreation programs for both youth & adults, infrastructure and facilities such as the new Pelican Park Community Center, local library, local post office and coming soon: Heritage Park and the new improved Newport Fishing Pier.

How do I contact my property appraiser to ask questions and get copies of forms to take advantage of my benefits? Contact the Miami-Dade County Property Appraiser as follows:

Marcus Saiz de la Mora
111 NW 1st Street, Suite 710
Miami, FL 33128-1984
E-mail: pawebmail@miamidade.gov
Web site: http://www.miamidade.gov/pa
Tel: 786-331-5321