Are foreclosures, short sales, and REO sales considered when determining the value of non-sold homes in a neighborhood?
Foreclosures remain the dominant real estate market factor in Orange County. Foreclosure occurs when a financial institution "repossesses" a property due to non-payment of the mortgage obligation. A short sale occurs when the financial institution agrees to accept a purchase price from a buyer which is less than the outstanding mortgage balance. The term REO stands for Real Estate Owned. These are bank owned properties. An REO or Bank Owned sale occurs when a financial institution sells its foreclosed property to an individual or investor.
The initial foreclosure "repossession" to the lender is not a sale and therefore not considered by the Property Appraiser when establishing values. However, short sales and REO sales may be considered on a neighborhood by neighborhood basis, depending upon the quantity of these sales compared to "traditional" sales of non-distressed properties, among other factors.
The Orange County Property Appraiser has identified 4,460 Orange County properties that completed the foreclosure process and were "repossessed" during 2011 along with 4,516 REO or Bank Owned sales. The Property Appraiser identified 7,307 new foreclosure filings in the first half of 2012, which is a 68.2% increase over the first six months of 2011.
How is the market value of my home determined?
By law, the assessment date of all real and tangible personal property in Orange County is January 1 each year. The 2012 market value is based upon sales of comparable properties in 2011. Sales that have occurred during 2011 will impact assessments on the 2012 tax roll.
What is the non-Homestead property 10% cap all about?
The 10% non-Homestead cap was approved by voters in January 2008 and became effective as of the 2009 tax roll. This cap is automatically applied to all non-Homestead properties, so no application is necessary. Non-Homestead properties include those without a homestead exemption such as second homes, vacation homes, vacant land, commercial and rental properties. The 10% cap will only ensure your assessed value does not increase more than 10% from your previous year's certified assessed value, providing the ownership has not changed, there was not a split or combination of the lot in the previous year, or new construction has not occurred. This cap may or may not actually reduce your taxes due to other factors such as millage rates and non-ad valorem assessments, which are not determined by the Property Appraiser. The 10% cap does not apply to school millages.
If you purchase a property subject to the 10% cap, the property will be reassessed at full market value in the year following a change in ownership or control, similar to the way a homestead exemption property is handled. If you change ownership or control of a property subject to a 10% cap without the recording of a deed, you must notify the Property Appraiser promptly of that change. Failure to do so subjects the property owner to a lien for back taxes plus 15% interest per annum and a penalty of 50% of the taxes avoided.
How can I find out if my city or county is raising my millage (tax) rate?
This chart shows a comparison between 2011 final millage and 2012 proposed and rolled-back millage for Orange County, Fire, Sheriff, Library and School Board as well as every municipality in Orange County. As you can see, six taxing authorities are proposing a 2012 millage rate higher than their 2011 final millage.
Rolled-back rates indicate the rate necessary, using 2012 total taxable value, to generate the same tax revenue generated in 2011. The reason many of the rolled-back rates are "higher" than 2011 rates is due to lower total taxable values in 2012.
How can I change my mailing address, file for homestead exemption, discuss or petition my property value? (click link)
How can the assessed value of my house increase when the market value is decreasing?
State of Florida Department of Revenue rules, which govern Save Our Homes, require all county Property Appraisers to increase the assessed value of your Homestead property annually by the lesser of either 3% or the percent change in the Consumer Price Index (CPI). In 2012 that increase was 3%. In the current real estate market, the market value of most homes is declining; however, under Florida law, the assessed value could still increase a full 3% this year. This is referred to as "recapture". Because of the "recapture" rule, it is possible for your assessed value to rise even though your property is declining in market value.
Where can I see my $50,000 Homestead exemption?
Look at the bottom left corner of your TRIM notice, marked "exemptions", you will see a break down of each exemption applied to your property, including the additional Homestead.
You will receive full benefit of the additional $25,000 homestead if your property's assessed value is $75,000 or higher. If your assessed value is less than $75,000 but greater than $50,000, you will receive an additional homestead equal to the amount of value between $50,000 and $75,000. If your property's assessed value is $50,000 or less, unfortunately, the property is not eligible to receive any benefit from the additional homestead exemption.
What does each column on my TRIM notice mean and which tax amount will I have to pay?
The Property Appraiser has created an interactive version of the Proposed Property Tax Notice (TRIM) to explain each item on the form. When viewing your property record page, click on the TRIM icon as shown below, then simply place your cursor over each area of the interactive TRIM to hightlight an explanation of that item.
Why are my taxes higher than my neighbor's when our houses are the same?
"My neighbor and I have identical homes. Both were built in the same year and sit on identical lots. My neighbor bought his house six years ago and I just purchased my home last year. My estimated tax bill for this year is $11,470, but my neighbor's bill is only $5,460. There must be a mistake!"
No mistake. The intent of the "Save Our Homes" Amendment was to prevent Homestead property owners from being taxed out of their homes in the face of rapidly increasing real estate sale prices by allowing for the accumulation of a "capped difference" over time. This accumulation of non-taxed value, also known as the "Save Our Homes Benefit", causes the disparity. This is the scenario impacting your neighbor’s property, mainly due to the fact that they have owned their home for 6 years and you just purchased yours last year. They have enjoyed the benefit of an increasing "capped difference" over time, and especially during the real estate "boom" of 2004-2006. Due to the real estate downturn, many homestead properties are decreasing in value. So, both you and your neighbor will see your market value decrease. If the downturn continues, eventually you will see your property and your neighbor’s become more similar with respect to value and taxes.
