Tax Property just too high...!?

Question

When it comes to Tax Property, When is the best time of the year to buy/close on new house if I am a first time buyer? I am from Florida, Orlando.. Does it save any money when it comes to Tax Property?

One of my friend told me that for first year you pay taxes only on land.

I closed on December 22nd, 2007.. That makes me believe it would have been nice if I closed it in Jan of 2008. That way I would have paid tax property only on land even though I lived in this house for whole year. Is this true?

Answer 1

You might pay tax only on the land for new construction, but not if you buy an existing house.  Most purchase contracts provide that tax will be prorated between the buyer and seller as of the date of sale.  In Florida, you might be able to get the benefit of the early payment discount, but that is it.

Answer 2

Property taxes are typically calculated in arrears. In other words, they tax-back not forwards.

So if you had closed on January 2nd of 2008, you would enjoy the prior homeowner's homestead exemption through 2008 and would be reassessed in 2009. But now your taxes will be based on your purchase price for 2007.

If you applied for homestead you would get your homestead exemption for 2008.

If you didn't apply for homestead you're gonna pay full freight unless you appeal.