What You Need to Know About Filing for Homestead Exemption in Miami

January 10, 2018

It’s the beginning of the year and financial planning is on everyone’s minds. One way that homeowners in Miami can save money is with a homestead exemption.

In Florida, property owners are eligible for discounts on their property taxes based on their homestead qualifications and property ownership status. State law allows homeowners to claim up to $50,000 in a homestead exemption on their primary property, with conditions on who qualifies for the tax benefits.

How can someone apply for a Homestead Exemption Miami?

Each year, the eligibility for homestead exemption is established on January first, but may be automatically renewed once a property owner qualifies as long as their exemptions do not change. For new property owners who wish to claim a new homestead exemption, they must file an original application on the property with the Miami-Dade County Property Appraiser office by March 1, 2018 in order to receive the exemption.

What types of properties qualify?

All legal Florida residents are eligible to apply for homestead exemption on homes, condos, co-op apartments, and certain mobile home lots. The home must be the primary residence of the property owner, and must not be a full-time rental residence.

What exemptions qualify?

Exemptions that may be claimed by Miami property owners include:

• $500 Widow/Widower
• $500 Civilian Disability
• $500 Blind Disability
• Total and Permanent Quadriplegic
• Surviving Spouse of Total and Permanent Disabled Veteran
• Veteran Abatement
• $5,000 Veteran Disability
• Totally and Permanently Disabled First Responder
• Veteran Total and Permanent Disability
• Assessment Reduction for Living Quarters of Parents or Grandparents
• Deployed Military
• Senior Citizen
• Long Term Resident Senior Citizen

Each one of these exemptions has conditions that must be met, and it’s important that if you file for one or more that you check the exact eligibility requirements.

What are the penalties for falsely claiming Homestead Exemption?

It’s important that you not falsely claim property tax exemptions in order to avoid severe penalties for doing so. For example, if the property, or any portion thereof, is rented, you must notify the Miami-Dade County Property Appraiser. Failure to do so may subject you to 50 percent penalty and 15 percent interest per year up to 10 years.

If these conditions apply to you, you no longer qualify for the Homestead Exemption and must notify the property appraiser.

• The property is rented.
• The property is not your permanent residence.
• You have homestead exemption on another property.
• Your spouse has homestead exemption on another property.
• If you receive a permanent residency benefit or tax credit in another state or Puerto Rico.
• There is a death of the original applicant.
• If the original applicant transferred the ownership of the property by executing a deed but did not record it with the clerk of courts.

If your property status changes, it is your responsibility to notify the property appraiser or potentially incur penalties. Through your auto-renew form that is mailed to your homestead address each year, you will have the option to designate if your status has changed with regards to exemptions.

For professional advice on all aspects of buying or selling real estate, please contact me at aross@miamirealestate.com or 305-960-2575, or come see me at the Compass office located at 2550 South Bayshore Drive, in Coconut Grove.