Property Tax: Understanding Property Tax Portability

Dated: 11/27/2019

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Play the quick video to easily understand property tax portability in Broward County from Dan Longman, Branch Manager / Loan Originator with Priority Lending the Mortgage Firm.

There is a really cool tool called portability. Portability is another way to save money on your property taxes. It is an additional homestead exemption you can receive. It is used for moving your Primary residence or upsizing your home.
Here is a quick illustration of how about how portability works. Let's look at a property purchased for $300,000 and assessed for the same amount. The Broward County will then give you a 10% discount off the purchase price which brings the value to $270, 000, then we will subtract a married couple’s $50,000 homestead exemption, which will leave us with a $220,000 assessed value. The assessed value is what determines your tax bill. Typically in Broward County, the millage rate is anywhere from 1.7% to 2.3% of the assessed value. In our example, let’s use a value in the middle, such as 2%, which would be a property tax bill of $4,400 annually. The Save Our Home Amendment will limit the amount the value may increase to a maximum 3% per year.
Now fast forward over time and the property is sold at $400,000 and your assessed value has crept up to $250,000. You have a net gain of $150,000. You are a move-up buyer and have purchased a property for $500,000. The Broward County will give you the same 10% off the purchase price which brings the value to $450,000. You will also get the Homestead exemption for married couples in the amount of $50,000. Without utilizing portability, your tax assessment would be $400,000 on this new property and your tax bill using the 2% millage rate would be approximately $8,000 annually.
Using portability can save you money! Take the $400,000 less $250,000 and port this over to your new property. So now this new property is assessed value is $250,000. This will be a $5,000 tax bill versus someone who did not take advantage of portability and have a tax bill of $8,000.
Of course, if you want more specific details, contact the Broward County Property Appraiser's office.
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Courtney Silverman

• I KNOW RESIDENTIAL REAL ESTATE • Full-time top producing Real Estate Professional 18 yrs+ • Marketing, Negotiating skills, Competence & Ethical standards • Get your home sold - ASAP for top ....

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