Don’t Forget to File for a Homestead Exemption on Your Florida Home Loan

Before you file, you need to decide whether or not the homestead tax exemption makes sense. If you decide that this is a path you’d like to follow - and if you took out your Florida home loan in 2005 - then you have until March 1, 2006 to apply for the $25,000 exemption.

The Florida Association of Realtors (FAR) reports that any Florida property owner with legal title to a home and who uses it as his or her permanent, primary residence by Jan. 1 is eligible for the exemption.

And what, exactly, is the homestead exemption? It is generally a $25,000 deduction from a home’s assessed value, as determined by the county property appraiser. Take the home’s assessed value, subtract $25,000, and apply the local millage rate to calculate the Florida property taxes due.

Homeowners making their first claim at this time should contact their respective county office of property appraisal to find out how best to file for the exemption - many offices offer applications online or will mail applications to residents. You just need proof that you actually own the home, such as deed of trust.

Once a homeowner has applied for - and received - a homestead exemption, it will be automatically renewed for that property each year on Jan. 1. Renewal notices are mailed out identifying the property, and if the owners still live in the home and qualify for the homestead exemption, then it’s taken care of automatically.

If you already have applied for a Florida home loan, or plan to in the near future, this is one aspect of it that’s not often well covered. Conduct research into the field and determine whether or not you’d like to pursue this possible exemption.