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Why Is My Tax Bill 3 Times Higher Than My Neighbor?

By Keith Connors

Why Is My Tax Bill 3 Times Higher Than My Neighbor? Welcome to home ownership. New home buyers are finding their tax bills are higher, sometimes much higher, than their neighbors. What’s going on? Short answer. They’ve been here longer, so save up buttercup. Right before the housing market crashed in 2008, things were getting a little crazy.  Home values were all over the place, and some (many on fixed income) were literally being taxed right out of their homes.  As a Realtor, I sold one home where the tax bill jumped from $1,500 to over $10,000. All the neighbor’s tax bills were jumping up too, because of the sale and re-assessment. The Save Our Homes amendment was signed in 1992 and was a lifesaver for homesteaded properties. Additional changes were added in 2008 and doubled the exemption. That’s when (before the crash) $250,000 and $300,000 homes were selling for $500,000 to $700,000. Sort of like the last year, right? Source TBT

  • Skyrocketing Prices

    Skyrocketing prices means higher appraisals. Those are the numbers used to determine home values, and we are taxed on those values. These new numbers, the higher appraisals will raise their ugly heads on tax bills this fall.

  • But My Neighbor's House Is Worth The Same As Mine

    If your neighbor has been there for more than a few years, they likely have Florida’s Save Our Homes tax shelter amendment working for them. It protects a portion of their tax burden, and also caps the amount taxable value can rise each year.

  • Why Isn't Everybody Furious?

    Many new homeowners understand the process, and the same protections may apply to them in the future. Some angry new buyers say all of us should pay the same today. But, fact is, they might not feel that way in 10 years when their home is worth  3 to 5 times what they paid for it, and they are taxed “out” of being able to live here. That is why the program was started in the first place. If your taxes on a $250,000 home go from $1,500 to over $10,000, will you have to sell because you can’t afford the payments?

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