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TALLAHASSEE, Fla. – May 17, 2011 – If you have clients who served in Iraq or Afghanistan during 2010, they’ll want to know about new legislation providing a tax break for homestead owners.

HB 1141 implements a constitutional amendment approved by voters in 2010 and provides a new homestead exemption for military personnel on active duty overseas. The exemption is based on the amount of time the individual served overseas.

How to calculate the tax break
Taxable value of the property multiplied by the percentage of time spent overseas in 2010. (Calculate percentage of time spent overseas by taking the number of days overseas and dividing it by 365).

So, if someone spent six months overseas in 2010, he or she would get a 50 percent discount. If someone spent the entire year overseas (12 months), he or she would get a 100 percent discount.

The property tax discount applies to 2011 taxes, but applicants must apply to their county property appraiser by June 1. If applicants miss the June 1 deadline, they have a second chance, but must apply with 25 days of receiving their assessment notice (TRIM Notice) and demonstrate extenuating circumstances.

“Since many counties do not even have an application form yet, you might recommend (that applicants) send a letter to their county appraiser before June 1,” says
Vicki Weber, an attorney with Hopping Green & Sams in Tallahassee, Fla. “In the letter, they should say, ‘I know about HB 1141, and I was deployed overseas last year. I qualify, and I will submit an application as soon as you send me one. But in the meantime, consider this my application.’”

After 2011, the application deadline is March 1.

Questions? Call Florida Realtors Legal Hotline, an included member benefit for Realtors in Florida at (407) 438-1409.

© 2011 Florida Realtors®