A common misconception that many in Canada and the UK have is that Florida charges Canadians or British more in property tax than United States Citizens pay. We’ve had several calls lately saying they heard rumors that Canadians and Brits “get raked over the coals on property taxes.”
Property tax is the same for Canadian or British snowbirds as it is for a Wisconsin snowbird, a Minnesotan snowbird, an Ohioan snowbird, or a Michigan snowbird.
All non-full-time residents are treated the same. The difference in the property tax structure is about to those who can claim the Florida property as their homestead (6 months or more and other conditions).
So what is the property tax rate for Canadian/British snowbirds or any other snowbird? Again, there is no difference in property appraiser valuation for snowbirds, no matter where they fly from. The tax rate (the mil rate) is the same for all residential property owners and the methods for assessing taxable value also are the same across the board.
Here’s the key difference between homesteaders and non-homesteaders (part time residents).
•Homesteaders have an annual cap of 3% on the property’s taxable assessed value.
•Non-homesteaders have an annual cap of 10% on the property’s taxable assessed value.
So when the market turns and property values increase, there is a limit to how much the property appraiser can increase the assessed value. If the property were to increase 15% in value in one year, the taxable assessed value can only be increased 3% (homesteaded) or 10% (non-homestead).
Homesteaders do have the option to take a homestead reduction, which reduces the assessed value. Once again, the tax rate remains the same for everyone no matter where their primary residence is.
Here is a link to the summary of the legislation that passed in 2007 (PDF): view summary.