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The Homestead exemption in Florida may refer to three different types of homestead exemptions under Florida law: 1. exemption from forced sale before and at death per Art. X, Section 4(a)-(b) of the Florida Constitution[1]; 2. restrictions on devise and alienation, Art. X, Section 4(c) of the Florida Constitution; 3. and exemption from taxation per Art. VII, Section 6 of the Florida Constitution. Florida's homestead exemption providing an exemption from forced sale before and at death are among the most protective in the United States as it provides "no limit" to the value of certain real property that can be protected from creditors. The property tax exemption clause of Article VI renders property tax-free to the extent of certain dollar amounts in the value of the homestead. The definition of a homestead is not necessarily co-extensive for Article X, Section 4 (a)-(c)exemption purposes (exemption from creditors and restrictions on descent and distribution) and Article VI purposes (exemption from taxation). Both provisions apply automatically upon the establishment of a primary residence in Florida, but to reap the tax assessment benefits, the homestead exemption must be claimed by a filing with the local county property appraiser's office. Homestead can be lost if the homeowner abandons use of the real property as a homestead. A fourth benefit, while not as clearly an exemption as the above three, is also accorded to one's homestead in Florida per Art. VII, Section 7 of the Florida Constitution. For tax purposes the year-to-year increase in assessed value of the homestead is limited to the lesser of 3% or the percentage change in the Consumer Price Index.
Homestead exemption in Florida provides that if the debtor does not claim or receive the benefits of a homestead exemption, the debtor may claim a $4,000 personal property exemption which is over and above the $1000 to which all debtors are entitled pursuant to Florida Statute 222.25(1).[2]
Because the homestead exemption is state law, it can also be overridden by the federal law due to the Supremacy Clause of the United States Constitution. Federal income tax liens are superior to the homestead protection provided by the Florida Constitution. The Internal Revenue Service's policy is reluctant to foreclose on taxpayer's homes to enforce these liens, often only getting satisfied if the real property is sold or mortgaged before the tax lien expires. Florida's Supreme Court recently held Florida's homestead exemption may be waived in the limited exception of a bankruptcy proceeding.[3]
Homestead exemption in Florida "portability" provision of the January 2008 constitutional amendment, a homesteaded owner may now move up to $500,000 of the "Save Our Homes" benefit from one Florida home to the next. [6] However, acquiring a house that had a homestead exemption does not entitle the buyer to retain the low tax rate enjoyed by the previous homesteaded resident, as homestead exemptions cannot be inherited or purchased. Supporters of the Save Our Homes Amendment contend that it allows long term residents with a fixed income to be able to afford to stay in their homes without being driven out by tax increases as their property value increases. Detractors argue that it creates an unfair system of taxation in which first time home buyers, new residents, seasonal residents, and businesses are burdened with more than their share of taxes while homesteaders are trapped in their own homes, often unable to move without doubling their tax rate. Under Florida law, the homestead exemption is only available to US citizens, permanent resident aliens, or others who are legally able to form the intent to remain permanently under immigration laws. For the taxation homestead exemption, "Persons Residing Under Color of Law" (PRUCOL -- a term created by the courts -- which applies to persons in the US with asylum or parole status, or someone who has applied for and completed the I-485 application process for a green card but is still awaiting final approval/issuance of the card). A person in the US under an E-, H-, L- or R-class visa is not eligible for homestead, pursuant to Rule 12D-7.007(3), Florida Administrative Code. A person under an H- or L- visa who has an already approved I-140, and is awaiting USCIS retrogressions in order to submit the I-485 application, is not benefited with the homestead exemption. There is a loophole in the system. J-4 visa holders, who are spouses of J-1 visa holders, are assigned an Alien Number. Some counties accept alien numbers as part of the requirements to obtain a homestead exemption, although J- visa holders cannot file for adjustment of status. Also, in general, a husband and wife in an intact marriage are treated as a single "family unit" under Florida law and are only entitled to a total of one homestead exemption -- no matter how many homes they own and occupy. [6]
References
[1] http:/ / www. flsenate. gov/ Statutes/ index. cfm?Mode=Constitution& Submenu=3& Tab=Statutes#A10S04 [2] http:/ / leg. state. fl. us/ Statutes/ index. cfm?App_mode=Display_Statute& Search_String=& URL=Ch0222/ SEC25. HTM& Title=-%3E2009-%3ECh0222-%3ESection%2025#0222. 25 [3] http:/ / works. bepress. com/ shawn_gearhart/ 2 [4] http:/ / dor. myflorida. com/ dor/ property/ limitations. html [5] Florida's Property Tax Reform Legislation: an Economic Review. Fort Myers, Fla.: Lutgert College of Business, Florida Gulf Coast University. 2007. pp. iv. [6] http:/ / www. bcpa. net/ homestead. asp [7] http:/ / www. fapa. net/ links. htm
DeSlatte, Aaron (2007-06-14). "Special session ends with large tax cut" (http:/ / web. archive. org/ web/ 20070930031609/ http:/ / www. floridatoday. com/ apps/ pbcs. dll/ article?AID=/ 20070614/ BREAKINGNEWS/ 70614012/ -1/ taxdivide) (in English). Florida Today. Archived from the original (http:/ / www. floridatoday. com/ apps/ pbcs. dll/ article?AID=/ 20070614/ BREAKINGNEWS/ 70614012/ -1/ taxdivide) on 2007-09-30. Retrieved 2007-07-04. DeSlatte, Aaron (2007-06-14). "Special session ends with large tax cut" (http:/ / web. archive. org/ web/ 20070930031609/ http:/ / www. floridatoday. com/ apps/ pbcs. dll/ article?AID=/ 20070614/ BREAKINGNEWS/ 70614012/ -1/ taxdivide) (in English). Florida Today. Archived from the original (http:/ / www. floridatoday. com/ apps/ pbcs. dll/ article?AID=/ 20070614/ BREAKINGNEWS/ 70614012/ -1/ taxdivide) on 2007-09-30. Retrieved 2007-07-04. Dunkelberger, Lloyd., Follick, Joe (2007-06-09). "State leaders reveal tax-cut details" (http:/ / www. heraldtribune. com/article/20070609/NEWS/706090691/-1/141773) (in English). Herald-Tribune. Retrieved 2007-07-04. Dunkelberger, Lloyd., Follick, Joe (2007-06-09). "State leaders reveal tax-cut details" (http:/ / www. heraldtribune. com/article/20070609/NEWS/706090691/-1/141773) (in English). Herald-Tribune. Retrieved 2007-07-04. Mayo, Michael (2007-06-17). "Legislators shouldn't look for kudos for property tax plan" (http:/ / www. sun-sentinel. com/ news/ columnists/ sfl-mayocol17jun17,0,1511101. column) (in English). South Florida Sun-Sentinel. Retrieved 2007-07-04. DeSlatte, Aaron (2007-06-14). "Special session ends with large tax cut" (http://www.floridatoday.com/apps/pbcs. dll/ article?AID=/ 20070614/ BREAKINGNEWS/ 70614012/ -1/ taxdivide) (in English). Florida Today. Retrieved 2007-07-04. Sword, Doug (2007-02-07). "Crist's tax ideas causing concern" (http:/ / www. heraldtribune. com/ article/ 20070207/ NEWS/702070666/-1/141773) (in English). Herald-Tribune. Retrieved 2007-07-04. "Common property-tax cut questions" (http:/ / www. miamiherald. com/ 458/ story/ 141750. html) (in English). Miami Herald. 2007-06-16. Retrieved 2007-07-04. "Still No Relief From Property Tax Deal" (http:/ / www. tbo. com/ news/ opinion/ lettertotheeditor/ MGB36T5693F. html) (in English). Tampa Tribune. 2007-06-23. Retrieved 2007-07-04. Brown, Paul B (2007-06-18). "Property Tax - Dream Home Diaries - Great Homes - New York Times Blog" (http:/ / dreamhome.blogs.nytimes.com/tag/property-tax/) (in English). New York Times. Retrieved 2007-07-04. "Special report: Save Our Homes" (http:/ / www. orlandosentinel. com/ news/ specials/ orl-special-saveourhomes-sg,0,7191127.storygallery) (in English). Orlando Sentinel. Retrieved 2007-07-04. Pollick, Michael. Braga, Michael., Sword, Doug (2007-06-15). "Non-homesteaders bear the brunt of tax reform" (http:/ / www. heraldtribune. com/ article/ 20070615/ BUSINESS/ 706150321/ -1/ 141773) (in English). Herald-Tribune. Retrieved 2007-07-04. Sharockman, Aaron (2006-09-20). "Portable 'Save Our Homes' in the works" (http:/ / www. sptimes. com/ 2006/ 09/ 20/Tampabay/Portable__Save_Our_Ho.shtml) (in English). The St. Petersburg Times. Retrieved 2007-07-04.
Homestead exemption in Florida Kaczor, Bill (2007-06-26). "State panel to discuss Plan B if voters nix tax cut" (http:/ / web. archive. org/ web/ 20070927065305/ http:/ / www. tcpalm. com/ tcp/ florida_news/ article/ 0,2820,TCP_24432_5603719,00. html) (in English). TC Palm Florida News. Archived from the original (http:/ / www. tcpalm. com/ tcp/ florida_news/ article/ 0,2820,TCP_24432_5603719,00.html) on 2007-09-27. Retrieved 2007-07-04.
External links
Official Florida Department of Revenue (DOR): Property Tax Administration (http://dor.myflorida.com/dor/property/ ) Broward County Property Appraiser Lori Parrish (http://www.bcpa.net/) DOR: Contact List for Property Appraisers in Florida (http://dor.myflorida.com/dor/property/appraisers. html) Florida Constitution Online (http://www.flsenate.gov/Statutes/index.cfm?Mode=Constitution&Submenu=3& Tab=Statutes) Other Special session ends with large tax cut (http://www.floridatoday.com/apps/pbcs.dll/article?AID=/20070614/ BREAKINGNEWS/70614012/-1/taxdivide:) State leaders reveal tax-cut details (http://www.heraldtribune.com/article/20070609/NEWS/706090691/-1/ 141773:) Common property-tax cut questions - MiamiHerald.com (http://www.miamiherald.com/458/story/141750. html:) Legislators shouldn't look for kudos for property tax plan (http://www.sun-sentinel.com/news/columnists/ sfl-mayocol17jun17,0,1511101.column:) Still No Relief From Property Tax Deal (http://www.tbo.com/news/opinion/lettertotheeditor/ MGB36T5693F.html:) Property Tax - Dream Home Diaries - Great Homes - New York Times Blog (http://dreamhome.blogs.nytimes. com/tag/property-tax/:) Non-homesteaders bear the brunt of tax reform (http://www.heraldtribune.com/article/20070615/BUSINESS/ 706150321/-1/141773:) Special report: Save Our Homes - Orlando Sentinel (http://www.orlandosentinel.com/news/specials/ orl-special-saveourhomes-sg,0,7191127.storygallery:) Portable 'Save Our Homes' in the works (http://www.sptimes.com/2006/09/20/Tampabay/ Portable__Save_Our_Ho.shtml:) State panel to discuss Plan B if voters nix tax cut (http://www.tcpalm.com/tcp/florida_news/article/ 0,2820,TCP_24432_5603719,00.html:)
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