Dear Pink Realtor,
I am shopping for my second home in Hollywood. The area is perfect for me, and I am finding very good deals for my dollar. The one thing I am not so sure about is the property taxes. My Realtor said it is easy — just 2 percent of the price. But, a friend of mine said that his condo tax is not 2 percent of what he paid. How do I know for sure?
Dear Canadien (no, folks, not a typo. This is “Canadian” in French),
Bienvenue en Floride!
Your friend is correct. Property Taxes in Broward County are calculated based on a millage rate of 21.7 mills (or 2.17 percent) of the assessed value. The assessed value is calculated annually. This estimate does not include any non-ad valorem assessments/fees.
When you purchase your home, you will inherit the seller’s exemption status for the current tax year. Review your closing statement, as the seller likely gave you a deduction for the seller’s pro rata share of the current year taxes. Because of that, you will be responsible for payment of the entire tax when it arrives in November. Next year, your home will be reassessed based upon your purchase price (and the sale prices this year of other qualified market sales in your neighborhood). Finally, remember that you will need to file for a homestead exemption on the property for next year, as the seller’s exemptions will automatically be removed at the end of this year.
The Broward County Property Appraiser has a great online tool to help you estimate your future tax in real time athttp://www.bcpa.net/TaxCalc.asp.