Property+Taxes+Assignment

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Florida International University *

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4433

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Finance

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Feb 20, 2024

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Jenny Reina PID 6292115 Property Tax Assignment 1. What date is the date of Assessment or Date of Just Value? In Florida, the "Date of Assessment" or "Date of Just Value" for property tax purposes is typically January 1st of each year. Property values are assessed based on the previous year’s market activities. The valuation includes applicable assessment caps. 2. Please list which type of exemptions there are? Please explain what is the purpose of these exemptions? In Florida, there are several types of property tax exemptions designed to provide relief to certain property owners. Some common exemptions include:  Homestead Exemption: Available to permanent Florida residents, this exemption provides a reduction in the assessed value of a property's primary residence. It aims to offer tax relief for homeowners.  Senior Exemption: For qualified seniors, this exemption may provide additional relief on property taxes. Eligibility criteria often include age and income requirements.  Veterans Exemption: This exemption is for disabled veterans or their surviving spouses, providing property tax relief as a recognition of their service and sacrifice.  Widow/Widower Exemption: Available to widows or widowers, this exemption may offer a reduction in property taxes to help ease the financial burden after the loss of a spouse. These exemptions serve various purposes, such as promoting homeownership, assisting seniors on fixed incomes, recognizing and supporting veterans, and providing relief for those who have experienced the loss of a spouse. They contribute to a fair and equitable property tax system by considering specific circumstances and needs of different property owners. 3. By which date must you file for an exemption? May you obtain an exemption automatically (ie not filing anything?) Property owners must submit all exemption and classified use applications and documentation to the property appraiser in the county where the property is located no later than March 1. In Florida, most property tax exemptions require an application process. Homeowners typically need to submit the necessary documentation and application forms to the local property appraiser's office to claim exemptions. All property owners with a homestead exemption are mailed an automatic Residential Renewal Receipt as a courtesy notice each year. If you still qualify for the exemptions listed on the receipt, then you do not have to do anything further. 4. Juan lives in his home as a permanent resident. Juan is trying to decide if he should apply for the homestead exemption, please explain to Juan all the benefits (all the “goodies”) of applying for the homestead exemption. If Juan decides to apply for the homestead exemption, when must he apply? Juan can enjoy several benefits by applying for the Homestead Exemption in Florida:  Property Tax Savings: The Homestead Exemption provides a reduction in the assessed value of Juan's primary residence, resulting in lower property taxes. This can lead to significant savings over time.  Protection from Property Tax Increases: With the Save Our Homes Amendment in Florida, the assessed value of Juan's homestead property is capped, preventing it from increasing by more than a certain percentage each year. This helps protect homeowners from substantial tax hikes.

 Additional Exemptions: Applying for the Homestead Exemption may also make Juan eligible for additional exemptions, such as the "Portability" feature, which allows homeowners to transfer their Save Our Homes benefit when moving to a new homestead property. Juan should apply for the Homestead Exemption as early as possible. The deadline to apply is typically March 1st of the tax year for which the exemption is sought. Applying by this deadline ensures that Juan can benefit from the exemption for the entire tax year. 5. Carolina applies for the homestead exemption and receives it on her condo and she falls in love and decides to move in with her boyfriend and rent out her condo for income. What penalties could Carolina face if the property assessor finds out that she does not use the property as her permanent residence? If Carolina receives the Homestead Exemption in Florida based on her condo being her permanent residence and then decides to rent it out while no longer using it as her primary residence, she may face penalties. The potential consequences could include: Recapture of Exemption: Carolina may be required to pay back the property tax savings she received through the Homestead Exemption while not meeting the residency requirements. Fines and Interest: Property assessors may impose fines and interest on the improperly claimed exemption. These penalties aim to deter individuals from taking advantage of exemptions they are no longer eligible for. Legal Consequences: Knowingly providing false information on a Homestead Exemption application can have legal repercussions. Carolina may be subject to legal action, fines, or other penalties for intentionally misrepresenting her eligibility. It's crucial for Carolina to inform the property appraiser's office if her living situation changes and she is no longer using the condo as her permanent residence. This ensures compliance with the rules and helps avoid potential penalties associated with incorrectly claiming the Homestead Exemption. 6. Juan knows that the Save our Homes Amendment to the Florida Constitution has something to do with Homesteading property. Please explain to Juan the significance of the Save our Homes Amendment to the Florida Constitution. The Save Our Homes Amendment to the Florida Constitution is significant for homeowners like Juan who have applied for the Homestead Exemption. The Save Our Homes Amendment caps the annual increase in the assessed value of a homestead property at 3% or the percent change in the Consumer Price Index (CPI), whichever is lower. This helps prevent significant increases in the property's assessed value, leading to more predictable property taxes for homeowners. By limiting the annual increase in assessed value, the amendment provides stability for homeowners, protecting them from large spikes in property taxes even as the market value of their property may rise. The Save Our Homes Amendment introduced the concept of "portability." If Juan decides to move to a new homestead property within Florida, he can transfer a portion of the Save Our Homes benefit from his old property to the new one. This allows him to retain some of the accrued property tax savings. In essence, the Save Our Homes Amendment aims to offer property tax relief and stability to Florida homeowners who claim the Homestead Exemption, helping protect them from excessive increases in property taxes over time. 7. Maria heard there are additional property tax exemptions that may help her grandma and her Dad who is Veteran. Please explain to Maria about these and other exemptions. Florida offers various property tax exemptions that may benefit Maria’s grandma and dad, who is a veteran.  Senior Exemption: Depending on age and income criteria, your grandma may qualify for a senior exemption, providing additional property tax relief.  Veterans Exemption: As your dad is a veteran, he may be eligible for a veterans' exemption, offering property tax relief to honor his service. This exemption is often available for disabled veterans as well.  Widow/Widower Exemption: If your grandma is a widow or widower, she might qualify for an exemption aimed at providing property tax relief following the loss of a spouse.  Disability Exemption: Depending on circumstances, individuals with certain disabilities may be eligible for a disability exemption, offering property tax relief.

8. Jenny just purchased a commercial building. She would love to receive the homestead exemption and cap on increase in value on the building. (a) Will she be able to obtain the homestead exemption on this property? (b) Why or why not? (c) Is there a cap on how much her property taxes will increase? a) No, Jenny cannot obtain the Homestead Exemption for a commercial building in Florida. The Homestead Exemption is specifically designed for residential properties, providing tax relief to individuals who use their property as their primary residence. b) The Homestead Exemption is not applicable to commercial properties because its primary purpose is to offer tax relief to homeowners on their primary residences. c) The cap on property tax increases, often associated with the Save Our Homes Amendment, is also not applicable to commercial properties. This cap is designed for homestead properties, limiting the annual increase in assessed value for residential properties to 3% or the percent change in the Consumer Price Index (CPI), whichever is lower. Commercial properties do not benefit from the same cap on increases. 9. What is a folio number? A folio number is a unique identifier assigned to a specific parcel of real estate. It is used by the local property appraiser's office to track and manage property information for tax assessment purposes. The folio number helps streamline property tax records and facilitates accurate identification of individual properties. Property owners can find their folio number on tax bills, assessment notices, or by contacting the local property appraiser's office. It is an essential reference when dealing with property tax matters or accessing property-related information within the local tax system. 10. John owns a 2 bedroom waterfront condo on Biscayne Bay, (a) does the Federal Government send John a property tax bill ? (b) Who does John pay the property tax bill to? a) No, the Federal Government does not send property tax bills. Property taxes are typically assessed and collected at the state and local levels, not by the federal government. b) John would pay his property tax bill to the local taxing authority in the jurisdiction where his waterfront condo is located. This would be to the Miami-Dade Tax Collector Office. 11. John receives his property tax bill on November 1, 2024. Which period of time do these taxes cover? In Florida, property tax bills are often issued for the upcoming fiscal year, and they typically cover the period from January 1st to December 31st of that year. Therefore, if John receives his property tax bill on November 1, 2024, it is likely covering the taxes for the calendar year 2024. 12. Jana receives her property tax bill on November 1, 2023. What period of time do these taxes cover? If Jana receives her property tax bill in Florida on November 1, 2023, the taxes likely cover the upcoming fiscal year, which typically spans from January 1, 2024, to December 31, 2024. Property tax bills in Florida are often issued in advance for the upcoming calendar year, and the billing and payment schedules can vary by county. 13. What does it mean for property taxes to be due in arrears? Are property taxes due in arrears in Florida? When property taxes are due in arrears, it means that the taxes are paid after the period for which they are assessed. In other words, property owners pay taxes for the previous year, not for the current year. This is in contrast to taxes being due in advance. In Florida, property taxes are generally due in arrears. For example, if a property tax bill is issued in November 2023, it is likely covering the taxes for the fiscal year 2023, which started on January 1, 2023, and ended on December 31, 2023. Property owners typically have some time to pay these taxes after receiving the bill, with due dates set by local authorities.

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14. (a) What is a TRIM notice? (b) When is it mailed? (c) Why is it important? (d) Who mails it? (a) A TRIM notice, which stands for "Truth in Millage," is an annual notice sent to property owners in Florida. It provides information about the property's assessed value, proposed millage rates from various taxing authorities, and estimates of property taxes based on the proposed rates. (b) TRIM notices are typically mailed to property owners in August each year. (c) The TRIM notice is important because it allows property owners to review and understand how changes in assessed values and proposed millage rates will impact their property taxes. It provides transparency in the tax assessment process and gives property owners the opportunity to attend public hearings where millage rates are discussed and set. (d) The TRIM notice is mailed by the county property appraiser's office in Florida. It is an essential communication tool to keep property owners informed about the upcoming property tax assessments and allows them to participate in the local government's decision-making process related to property taxes. 15. (a) What is a Tax Notice? (b) How is different than a TRIM notice? (c) When is it mailed? (d) Who mails it? (a) A "Tax Notice" generally refers to a bill or statement sent to property owners specifying the amount of property taxes owed based on the assessed value of their property and the applicable millage rates. (b) The key difference between a Tax Notice and a TRIM (Truth in Millage) Notice is the timing and content. The TRIM notice is sent before the tax bills and provides information about proposed millage rates and estimated taxes, allowing property owners to review and participate in the assessment process. The Tax Notice, on the other hand, is the actual bill detailing the final tax amount due. (c) Tax Notices are typically mailed to property owners after the local taxing authorities have finalized the millage rates and assessments for the upcoming tax year. The timing can vary but is often later in the year, typically in the fall. (d) Tax Notices are mailed by the local tax collector's office or a similar department responsible for collecting property taxes in the specific jurisdiction. It is this office that manages the billing and collection of property taxes based on the finalized assessments and millage rates. 16. How much does it cost to file a Property Tax Appeal in Miami Dade County? Filing fee on single petitions appealing real and tangible personal property taxes (per folio), except petitions for tax deferral and certain homestead tax exemptions - $15 17. Are the Property Appraiser and the Tax Collector the same entity? If not, how are they different. No, the Property Appraiser and the Tax Collector are not the same entity. They have distinct roles in the property tax assessment and collection process.  Property Appraiser: The Property Appraiser's office is responsible for determining the assessed value of properties within a given jurisdiction. They assess the market value of real estate for tax purposes, taking into account factors like property improvements, location, and market conditions. The assessed value is used to calculate property taxes.  Tax Collector: The Tax Collector's office is responsible for collecting property taxes based on the assessments provided by the Property Appraiser. They send out tax notices, receive payments, and distribute the collected funds to the various taxing authorities, such as school districts, municipalities, and other entities that rely on property tax revenue. 18. Ana receives her property TRIM Notice and Ana is Angry because she thinks the tax rate it too high. Angry Anna wants to do something to lower the tax rate – please explain what best to do to reduce the tax rate – should she contact the (i) Property Appraiser; (ii) Tax Collector or (iii) Participate in Budget Hearings of the Local Municipality?

If Ana believes that her property's assessed value is inaccurate or unfairly high, she should contact the Property Appraiser's office. The Property Appraiser determines property values, and if Ana can provide evidence that the assessment is incorrect, they may review and potentially adjust the assessed value, which can impact the property taxes. Engaging in local budget hearings is a powerful way for Ana to voice her concerns about the tax rate. These hearings are where decisions about millage rates and budgets are discussed and finalized. By participating, Ana can express her opinions directly to local officials and influence decisions on tax rates and budget allocations. While the Tax Collector's office handles tax collections, contacting them directly may not directly impact the tax rate. Focusing on the Property Appraiser for assessment concerns and actively participating in local budget hearings would be more effective in influencing the factors that contribute to the tax rate. 19. John never receives a Tax Notice about his condo! John is psyched because he thinks that if he doesn’t receive the notice, he doesn’t have to pay the taxes this year. (a) Is this a good idea? (b) What type of penalties could John face if he doesn’t pay property taxes? (a) No, it's not a good idea for John to assume he doesn't have to pay property taxes just because he didn't receive a Tax Notice. Property owners are generally responsible for paying property taxes, and the failure to receive a notice does not exempt them from this obligation. (b) If John fails to pay property taxes, he may face penalties, which can include late fees, interest charges, and, in extreme cases, the possibility of a tax lien being placed on his property. It's crucial for property owners to proactively inquire about their tax obligations and ensure timely payment, even if they don't receive a notice, to avoid these potential consequences. John should reach out to the local tax collector's office to get information on his tax liability and payment options. 20. Ana receives her Tax Notice in November. Please explain Ana the discounts that she will receive if she pays her taxes in November, December, January and February. If Ana pays her taxes early, she will receive a discount - 4 percent in November, 3 percent in December, 2 percent in January, and 1 percent in February. The amounts are calculated on her bill. If she doesn’t pay taxes, they become delinquent on April 1 and tax certificates will be sold on all unpaid items by June 1. 21. Ana decides to pay her taxes in March and they are not late at this time. Will Ana receive a discount for paying her taxes in March? In Florida, paying property taxes in March generally does not qualify for the early payment discounts that are typically offered in the preceding months, such as November, December, and January. The discounts are usually designed to incentivize early payment, and they progressively diminish as the payment deadline approaches. While Ana's payment in March would not receive the same discounts, as long as she pays before the official deadline and avoids any late fees, her payment would still be considered timely. 22. Marciano says he hates to pay taxes. Explain to Marciano why taxes are necessary. Taxes are essential for funding various government services and functions that benefit society as a whole. Here are some reasons why taxes are necessary: Taxes fund public services such as education, healthcare, infrastructure (roads, bridges), public safety (police, firefighters), and social programs. These services contribute to the overall well-being and development of communities. Taxes support the legal and justice systems, ensuring a functioning society with established laws and regulations. This includes the funding of courts, prisons, and law enforcement agencies. Taxes contribute to the defense budget, supporting the military and national security efforts to protect the country from external threats. Taxes fund programs that provide assistance to those in need, such as unemployment benefits, social security, and welfare programs, helping to create a safety net for vulnerable populations. Tax revenue is used for constructing and maintaining essential infrastructure like roads, bridges, public transportation, and utilities, which facilitates economic activities and connectivity. 23. Please explain the factors the Property Appraiser must consider determining the value of a property.

The Property Appraiser considers several factors when determining the value of a property. These factors help assess the property's market value, which is the basis for calculating property taxes. Common considerations include:  Market Conditions: The current state of the real estate market, including supply and demand dynamics, influences property values.  Location: The property's location significantly impacts its value. Factors such as proximity to amenities, schools, transportation, and neighborhood trends are taken into account.  Size and Layout: The size of the property and the layout of structures on it, including the number of bedrooms and bathrooms, affect its value.  Condition of the Property: The overall condition, age, and maintenance of the property contribute to its value. Renovations and improvements may increase value.  Comparable Sales (Comps): The Property Appraiser looks at recently sold properties with similar characteristics in the same or nearby areas to establish a comparative market analysis.  Income Potential: For income-producing properties, such as rental units or commercial spaces, the potential income generated can influence the property's value.  Land Features: Characteristics of the land, such as topography and waterfront access, can impact property value.  Zoning and Land Use: Local zoning regulations and land-use designations play a role in determining property value and potential uses.  Economic Trends: Broader economic factors, such as interest rates and employment rates, can influence property values.  Assessment Methods: The Property Appraiser may use various assessment methods, including the cost approach, income approach, and sales comparison approach, to arrive at a fair market value. 24. Which Properties does Gloria Estefan own in her own name in Miami? Please explain how you found this out. 39 Star Island Dr, Miami Beach, FL 33139 8921 SW 10 Terrace, Miami, FL 33174 I found it on the Miami-Dade property appraiser website.

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