Property Tax Appraisal and Collection Issues
Today is tax day
here in the U.S., and it seems appropriate to discuss tax issues that
impact homeowners here in Miami-Dade County. Either by accident, or on
purpose, the Realtor® Association of Miami-Dade County (of which I am a
proud member) hosted a presentation today with representatives of
Miami-Dade’s Property Appraiser and Tax Collector’s offices. We
discussed some local issues in their areas of expertise. I’d like to
pass along some of the info I learned today.
Miami-Dade County
residents should know that there are a number of programs available to
owners of homesteaded property to help them with their tax issues. I’ll
go through some of them briefly here- but for details- please see the
website of the Miami- Dade Tax Collector.
Installment Plan
This
program allows homeowners to pay their property taxes quarterly. Like
any government program, there are restrictions and forms- which you can
find here,
but it seems like a straightforward process. For many people who have
problems budgeting (like me!) or who are used to having a lender
escrowing their taxes for them, this is a way to not have to worry
about that big tax bill at the end of the year. I know I like it better
when I can plan on a certain fixed amount of a bill every month or two,
or even every quarter. My mind just doesn’t like to think about paying
a big expense once a year.
Deferment
This
program isn’t for everyone- nor should it be. If you have serious
problems paying your taxes, then this may be an option for you- for a
while. This program is deferment- not forgiveness! You will have to pay
the entire amount of your taxes at some point, and you will also incur
some fees and interest- and that interest could go as high as 9.5%!, so
use this plan wisely. For someone having a short to medium duration
cash-flow problem, this might just be the ticket. The program details
and forms are here,
but some of the important things to remember are that this program is
for people eligible to claim a homestead exemption, there are strict
limits on the homeowner’s income for eligibility, and the deferral
becomes a lien on the property until it is payed off in full. Also-
there are other limits dealing with the ratios with respect to the
assessed value. Specifically:
The
total amount of deferral plus accrued interest and the balance of the
primary mortgage cannot exceed 85% of the assessed value.
The applicant’s primary mortgage cannot exceed 70% of the assessed value.
There
are other requirements as well, including maintaining fire and
homeowner’s insurance, but I won’t go into more detail here. All the
info is on the Tax Collector’s web site.
Full Payment Discounts
Of
course, paying your debts in full as soon as the bill comes gives one a
great feeling of satisfaction and serenity, and the Tax Collector will
reward you if you do. If you pay your tax bill in November, you can
take 4% right off the top! The percentages decrease the longer you
wait, until the end of March when the bill is due, then the late fees
start! Check out these rules here.
Remember that if
you think that your assessed value is wrong (and doesn’t everybody?!)
you can discuss the matter with the county’s Value Adjustment Board.
I was surprised to hear that 55% of the people that challenged their
assessment- won! Now I don’t know exactly what “won” means in this
context, but it tells me that if you think you have a case, you should
give it a try.
As a final thought,
remember, if you think you are in danger of falling behind in paying
your tax bill (or any other bills for that matter) be proactive. Do not
wait until you start getting nasty certified letters and phone calls,
or knocks on the door. Many government agencies and financial
institutions have programs in place to help people who recognize their
situation early and are trying to do the right thing. Often, if you
wait, you find that you will not be eligible for a lot of the programs
that would have helped you if you only knew about them a few weeks or
months ago. It’s human nature to procrastinate, and to be in denial
about financial problems, but the results will always be better if you
act earlier instead of later.
I’ll have some more info about assessment and taxation in future blogs- so stay tuned!
In the mean time- if there’s a
question or issue you think I can help you with, don’t hesitate to get
in touch with me. I’ll do my best to find you some answers- or at least
I’ll try to point you in the right direction!