**Greetings from Branon and Jelena Edwards at Coldwell Banker!

As promised in our last issue, here is part two of our series on Florida
Real Estate Taxes. To view previous newsletters, click here:
http://finance.groups.yahoo.com/group/miamirealty/messages

Of course, if you or anyone you know is considering buying or selling real
estate in Florida, please let us know. We will be happy to contact them
directly. We consider referrals to be the most sincere compliment that we
can receive from our customers - THANK YOU!

Of course, they can also contact us via our newly remodeled website:
http://www.ScubAHH.com

---------- CONGRATULATIONS ----------

We would like to send our congratulations to David and Bernadette of
Illinois for reserving 2 preconstruction condo units at Everglades on the
Bay, a new luxury highrise to be built across from Bayfront Park in
downtown Miami.

Also, congratulations to Sandi from Punta Gorda for buying a
preconstruction condo in Blue Condos on the Bay, a new luxury highrise
being built on Biscayne Bay at NE 36th Street.

---------- FLORIDA TAXES ----------

HOW DO THEY CALCULATE PROPERTY TAXES
AND HOW TO SAVE UP TO 5% ON YOUR PROPERTY TAX BILL:

Most real estate in Florida is subject to various property taxes or 'ad
valorem taxes'. 'Ad valorem' simply means according to value... in other
words, you pay taxes based on the value of the real estate involved.

Typical taxes include a county tax, a city tax, and/or a school board
assessment tax. State law caps the tax rate for each entity at 10 mils or
1%, which means your property tax could be as high as 4% annually in some
areas. Keep in mind also that the tax bill you receive in November is
being billed in arrears - in other words, the tax bill is from the previous
January through December 31st, but they don't bill you until November.

HOW DO THEY CALCULATE MY PROPERTY TAX?
The tax assessor's office uses a variety of methods to determine a 'just
value' for your property including cost, appreciation, depreciation, sales
comparison, and income approaches. Generally speaking, the tax value of
your property is less than the actual market value. However, a recent sale
can prompt the tax appraiser to re-evaluate your property value and raise
your assessed value. Some counties are actually moving toward using the
most recent sales price to determine the assessed value.

Once the local government has assigned a value to your property, they then
deduct any exemptions you may have, such as the Homestead Exemption. For
more information on the Homestead Exemption and its many benefits, see our
February Newsletter.

Example:
Let's assume your home has an assessed value of $500,000 and since it is
your primary residence, you have claimed (and properly filed for) the
Homestead Exemption. Let's also assume you live in a nice area where the
county, city, and school board all ask for their full tax rate of 10 mils
(a total of 30 mils or 3%).

$500,000 assessed value
-$25,000 Homestead Exemption
---------
$475,000 taxable value
X 0.03 tax rate
---------
$14,250 total annual property tax

---------------------------------------------------
WHAT IF I DON'T AGREE WITH THE ASSESSED VALUE OR MY TAX BILL?

Lucky for all of us, if we disagree with our tax bill and primary the
assessed value that has been assigned to our property, we have several
options to remedy the situation.

1) Seek an adjustment by contacting the County Property Appraiser's
Office. (hint: this is best done in person). Property owners have 25 days
after the assessment notice is mailed to them to protest the assessment and
request an adjustment. If you have a valid argument, they will usually
make the adjustment.

2) If your adjustment request is not accepted, you can petition (appeal)
to the Value Adjustment Board, which is made up of 3 county commissioners
and 2 county school board members. If the board agrees that the assessment
is too high, they can adjust it directly. If they feel the assessment is
valid, then you move to step 3.

3) File suit against the county property appraiser and the county tax
collector. You can pay the taxes under protest and file for a 'certiorari
proceeding', which simply means a review by the courts. The court cannot
directly reassign a value, but they can specify which appraisal methods are
used to calculate your assessment. Of course, this is a last resort step
and suit must be filed within a specific time period (see local laws).
Since legal fees can be extensive, be sure to consider the amount you might
save versus the amount you may spend in court.
---------------------------------------------------
THE TAX BILL TIMELINE

November 1st - tax bills issued

December 31st - current tax year ends

January 1st - new tax year begins, property may be reassessed, a lien is
placed against your property for the November tax bill. This is the
earliest you can apply for a Homestead Exemption for this tax year.

March 1st - last day to file for the Homestead Exemption for the current year.

April 1st - property taxes for previous year become delinquent
---------------------------------------------------
SAVING UP TO 5%
Ok, so we promised to tell you how to save up to 5% on your taxes, right?
It's simple. Just pay your tax bill early. Most taxing authorities
actually give you a discount if you pay your taxes before they have to file
a lien against your property. Some will even provide a graduated discount
with different discounts based on the date they receive your payment. If
you pay your bill right away, you will generally receive the full discount,
which can be as much as 5%.

THERE'S A CATCH:
If you have a mortgage on your property, your lender probably requires that
a portion of each month's payment be set aside in an escrow account to pay
the taxes when they become due. Unfortunately, some lenders don't pay this
bill right away and will often wait until the last minute to pay your tax
bill, so you lose the discount. HOWEVER, if you call your lender directly
and ask them to pay your taxes as soon as you receive the bill, most will
honor your request. The added benefit here is that by doing so, you may be
left with additional money in your escrow account with the lender at the
end of the year. When they reevaluate your account at the beginning of the
year, they may adjust your payment downward to reflect the overage - a
win-win situation for you!

SAVE OUR HOMES LAW
Because of ever-increasing tax bills, the State passed the Save Our Homes
law, which limits property tax increases to 3% per year on properties with
the Homestead Exemption. So, if property values suddenly skyrocket in your
neighborhood, the most your taxes can increase (if you have the Homestead
Exemption) is 3% per year. If you don't have the Homestead Exemption,
there is no cap on property tax increases, which means vacant lots,
vacation/2nd homes, and properties other than your primary residence do not
carry this protection.

Ok, that's it for this edition. Our next newsletter will feature details
about taking advantage of the Preconstruction Investing Boom currently
underway in Florida.

As always, thank you for the opportunity to earn your business.

All the best,



--Branon A. Edwards, Licensed Florida Realtor®
--Jelena Panfilova Edwards, Licensed Florida Real Estate Agent

Branon Direct: 786-417-4910
mailto:Branon@...

Jelena Direct: 786-417-4911
mailto:Jelena@...

Our Private Fax: 786-524-5747

VISIT OUR WEBSITE:
http://www.ScubAHH.com

---- Office Information ----

Coldwell Banker® Residential Real Estate, Inc.
328 Crandon Blvd, Suite 127
Key Biscayne, FL 33149 USA

Statewide Websites:
http://www.floridamoves.com/branon.edwards
http://www.floridamoves.com/jelena.panfilova
http://www.coldwellbanker.com/for/edwards