STAY WHEREVER YOU ARE NOW, DON’T MOVE, DON’T EVER THINK ABOUT DOWNSIZING, EVEN DON’T DIE YET
Couple days ago, I commented on a TV news video from the state where I live, when it was just published. Actually, it was not a comment; it was just a response back to someone saying that a homeowner, who was trapped in some kind of homeowner relief program or something, said that if she can’t afford paying to maintain the house or something… she needs to downsize. I did say that if she downsizes, she probably has to pay more property tax because the County Tax Collector calculates the property tax based on the current market price when she buys a new property and then its property tax will be increased every year… Today, I went back to find my response to that comment to make sure that I said the right thing and found out it’s no longer there. I expanded all replies of each comment to find it, but it is nowhere. Then I said… Humm… let me tell everyone to know about the property tax where I live.
As I have seen, most of the media said it’s a right time to buy a house, blah, blah, blah… and, at another time, they was crying and saying, people couldn’t afford buying a house and the government needs to push out some programs for a new buyer having a chance to own a house… affordable housing, grants or something, but they did not say anything about the property tax. Now, I will tell you whatever I know and understand about the property tax where I live.
THE PROPERTY TAX IS CALCULATED BASED ON/VERY CLOSED TO THE CURRENT MARKET PRICE WHEN WE BUY THE PROPERTY AND IT’LL BE INCREASED EVERY YEAR AT 3% IN CAP WITH A HOMESTEAD EXEMPTION AND 10% IN CAP WITHOUT A HOMESTEAD EXEMPTION.
NOT JUST ONLY THAT, A DECEASED HOMEOWNER’S PROPERTY IS ALSO BE RECALCULATED BASED ON/VERY CLOSED TO THE CURRENT MARKET PRICE RIGHT AFTER HE/SHE DIED EVEN THOUGH THE PROPERTY IS NOT SELLING. DEFINITELY, HIS OR HER HOMESTEAD EXEMPTION IS DROP RIGHT AT THE TIME WHEN THEY KNOW HE/SHE DIED.
FOR EXAMPLE, A HOMEOWNER BOUGHT A HOUSE IN 1979 AT THE PRICE OF $39,000 WHICH CLOSES TO THE DOWNTOWN. OF COURSE, BACK THEN THAT AREA WAS RURAL, ORANGE GROVE. HE/SHE PAID HIS/HER PROPERTY TAX BASED ON $39,000 PLUS 3% IN CAP INCREASING YEAR AFTER YEAR. THE TAX DUE BILL WAS AROUND $1,000 A YEAR. ASSUME THAT THE PROPERTY IS STILL IN AN ORIGINAL STRUCTURE, NOT A MAJOR REBUILT.
IN LATE 2023, HE/SHE DIED, HIS/HER HOMESTEAD EXEMPTION AND WHATEVER EXEMPTION HE/SHE RECEIVED, WERE NO LONGER APPLYING TO THE PROPERTY RIGHT AT THE TIME THE STATE RECEIVED A NOTICE HE/SHE DIED.
NOT STOPPING THERE YET, IN 2024 TAX DUE BILL, THAT DECEASED HOMEOWNER’S PROPERTY WILL BE RECALCULATED TO/VERY CLOSE TO THE CURRENT MARKET PRICE, WHICH IS AROUND $500,000 AND IT WILL BE INCREASED 10% EVERY YEAR ON THE PROPERTY PRICE, NOT THE TAX DUE BILL. THE PROPERTY TAX FOR 2024 WILL BE DUE AROUND $10, 000 TO $11,000 ON MARCH 31, 2025.
IF THAT PROPERTY IS SOLD OR TRANSFERRED TO THE FAMILY MEMBER(S), THEN THAT NEW HOMEOWNER(S) WILL RECEIVE A TAX DUE BILL BASED ON $500,000 AND AN INCREASED 3% IN CAP EVERY YEAR IF THEY, THEMSELF, OCCUPY THE PROPERTY AS OF JANUARY 1, 2024 AND FILL A HOMESTEAD EXEMPTION BY MARCH 1, 2024. THE PROPERTY TAX FOR THEIR 2024 WILL BE DUE AROUND $8,000 TO $9,000 ON MARCH 31, 2025.
You know what, if a deceased homeowner is still around on this earth, I think he/she is crying that it’s unfair, that is not right, something is wrong, they are taking advantage of the dead homeowner, dead people or whatever… …done tax on his/her property which was bought and maintained from his/her penny savings and lived on a frugal lifestyle. 😢😢😢
So, in my conclusion, if you’re a live-in homeowner, stay wherever you are now, don’t move, don’t ever think about downsizing, even don’t die yet… 😄😄😄 unless you choose to live in a van life, truck life, car life, boat life, cruise ship life, traveler life, street life or move to deep in countryside of Midwest or somewhere. If you downsize, then don’t have money to pay the property tax, you lose your home anyway.
VNN, April 11, 2024 at 12:49 a.m.
NOTES:
- Those numbers are my picked-on numbers to highlight my example, not in a realistic number, but kind of close to.
- Hey, if whatever I said is wrong, then the County Tax Collectors need to make clear and show details on how they appraise the property, how to calculate the property tax and how to use the money and then publish them on their websites for everyone to know and understand.
- I’m not an expert on the property tax but I see a lot of people know less than me. That’s why I tried my best to express them as clearly as I can.
Update (4/16/2024 5 P.M.)
Reposted: Friday, 2/20/2026 at 8:25 p.m.
A Message to Orange County Property Appraiser (Florida Property Tax/House Tax)
Property Taxes, House Taxes, “Roof-Over-Head” Taxes, Place-to-Live Taxes
Nghe: Tu La Coi Phuc