"If I lose my exemption, or don't appeal a denial or revocation of my homestead exemption, how much will my taxes go up?"
If you are denied your Florida homestead tax exemption and the Save Our Homes exemption (SOH), or if the exemption is revoked by the County Property Appraiser, the future property tax costs could be tremendous. A typical, but not guaranteed (the end result could be more) example of the amount your real property taxes can increase is below:
Take a standard middle income property based on the current property record from the county property appraiser:
Enter the Assessed/SOH value Current year 2012= A) ____ $154,820
Enter last tax year amount Paid for 2011= B) ____ $2,347
Enter the Just/Market Value= C) ____ $220,050
Subtract $50,000 (exemption) from A and enter here= D)____ $104,820
(allowing for Homestead Exemption/SOH)
Calculate the following: (C * B) / D = New Taxes
($220,050 * $2,347) / $104,820 = $4,927 (New Taxes amount
$4,927 - $2347 = a $2,580 increase
The New Taxes amount is approximately a 110+% Increase!
It should be noted here that this possible amount of percentage increase will be based on the property appraiser's taxable amounts, and will be the new basis for the future years assuming that the property owner does not retain the homestead exemption, and must re-apply for the following tax year. In other words, one loses the Save Our Homes value and must start as of that new market value taxable amount the next taxable year IF
the homestead exemption is granted subsequently for the next, or future years, and there is NO guarantee that it would happen. Also, the increase remains in place FOREVER
once the exemption/SOH is lost!
Assumptions that alter the calculation (mostly upward) are that this is an approximation since city/municipal/local taxes and millage rates vary as does the county tax for properties outside of my County.
This example only relates to a City/Municipality (which has a relatively low Ad Valorem city tax/millage rate). Also, the figures above must be based upon the current property folio record and current ad valorem taxable amounts, county taxes, city taxes, other taxing authority taxes, current millage rates, market value, just value and Homestead Exemption/SOH, etc...
Secondly, this assumes that the Just Value does not increase as a result of the Property Appraiser's Office adjustment for the next year, usually July 1st.
This year, the 2012 Consumer Price Index is 3%, which is the maximum amount that the Property Appraiser can raise ad valorem taxes under the 'Save Our Homes' (SOH) exemption. If the SOH exemption and the Homestead Tax Exemption is lost, you revert to full market value taxation! There might another one or two minor adjustments on the above calculation, but you now understand the ramifications of loss of homestead exemption along with the Save Our Homes exemption!
As far as revoking the tax exemption, that will not change the past exemption in Florida because the exemption revocation will be from that date forward, not retroactive, which will not affect past tax rates and revocation rates (unless you appeal to the Value Adjustment Board/local Circuit Court, and win) and...the law does NOT allow negotiation of property tax assessments, unless you appeal a valuation of the property.
Regarding Value Adjustment Board (VAB) appeals, you have the option to appeal any denial or revocation of homestead exemption to the Value Adjustment Board itself, within 30 days of the HEX denial, and if they fail to reverse the PAO (Property Appraiser's Office) you can appeal to the Circuit Court and ask a judge to grant your homestead exemption rights as previously granted under the law.
I hope this helps in regards to the question "If I lose my exemption, or don't appeal, how much will my taxes go up?"
Any response or opinion is welcomed.