If you are thinking of buying a property in the capital of the sun you should know how the tax regime works and the different payment options. Miami is the cheapest among the ten most expensive cities in the USA, with the added attraction that no state income tax is charged, which in San Francisco or Los Angeles can be around twenty percent (20%) annually.
The so-called property tax is a property tax on land and property. It is paid by factories, condominiums, docks, houses and apartments once a year in arrears and depends directly on the value of the property. In addition to the cost of the property, additional charges are included to finance schools, libraries, infrastructure works, etc. These are the Ad Valorem Taxes and the detailed information of each one is on the invoice.
To calculate the value to be paid of tax, eighty percent of the value of the property is taken into account, the assessable price, and from there the amount to be paid is computed depending on the percentage applied to the good, which can range from 1.75 to 2 (%) percent. There are no additional charges if the owner is a foreigner and/or does not reside in the country.
The deadline for timely payment runs from the first (1st) of November to the thirty-first (31st) of March of the following year. Property tax prepayment discounts work like this:
1. Four percent (4%) until the thirtieth of November
2. Three percent (3%) until December thirty-one (31)
3. Two percent (2%) until the thirty-first (31) of January of the following year
4. One percent (1%) until the twenty-eighth (28th) or twenty-ninth (29th) of February.
It is considered delinquent (delinquient) if you cancel the value after the first (1st) of April, from this date interest and additional fees are generated to the original value. It is important to clarify that if the payment is not paid before the thirty-first of May (31) of the following year the debt can be sold as a tax lien certificate and if two years are in arrears, the buyer of that debt certificate can sell the property.
Thinking about the comfort of each person, there are several ways to cancel the Property Tax:
1. Face-to-face: currently restricted. Applies for late or delinquent payments. The means of payment are: cashier’s checks, certified funds, payment orders made payable to Miami Dade Tax Collector or cash. They do not receive eChecks, credit or debit cards.
2. Online: it is done through the https://miamidade.county-taxes.com/public page. If the payment bounces, an additional fee of up to five percent will be charged. Means of payment: credit cards (Visa, MasterCard or Discorver) and debit cards (payment is processed as a credit card payment) with an additional fee of 2.21% and as long as you are not in arrears. They also receive eChecks, even for late payments.
3. Physical mail: by this means payments are processed within the deadline and delinquent. The means of payment are: cashier’s checks, certified funds or money orders payable to Miami Tax Collector with the identification of the property. Cash or post-dated checks are not accepted. If the payment bounces, an additional fee of twenty-five (25) dollars is charged up to five percent (5%) of the value paid, depending on the amount of the invoice.
4. Phone: You can call 311 Monday through Friday from eight (8) a.m. to four (4) p.m. until May twenty-eight (28). The means of payment are: only eChecks are processed for the total amount. They do not receive partial, installment or credit or debit card payments.
5. Financial Institution: in this way it is possible to pay only if there is a credit and / or mortgage in force on the property. The bank takes care of the settlement of the tax and collects the amount on the next invoice.
In the case of not agreeing with the value of the Property tax, you can make a request for reduction of the amount in person or through a lawyer before the Value Adjustment Board (VAB) before the first (1st) of March. To make the request it is essential to have paid at least seventy-five percent (75%) of the value before the first (1st) of April and can not be done online.
If it is not possible to pay the full value there are alternatives such as partial payments, deferred payments or presenting a quarterly payment plan, let’s see:
1. Partial payments: by accessing this option, cash discounts are waived and ten additional dollars are charged to each installment. They are received from the first (1st) of November until the thirty-first (31st) of March, date on which the total amount must have been paid. These types of payments are not accepted when:
to. The homeowner has an escrow account with the mortgage company.
b. The owner participates in the quarterly installment plan
c. The owner filed a request for value adjustment with the VAB
The application form is downloaded from the https://www.miamidade.gov/global/service.page?Mduid_service=ser149979746350917 website and at the time of applying the first installment must be paid.
2. Deferred payments: If this option is chosen, taxes become a property lien with accrued interest, not to exceed seven percent (7%) on the amount deferred until the balance is paid. They must meet the following conditions:
to. Be eligible for the Homestead Exemption (see what it’s about at the end of this article)
b. Have fire insurance and have the property listed with the city collector as a test beneficiary
c. Demonstrate fixed income
d. Not differ more than eighty percent (80%) of the total taxable price. If you have a current mortgage, it should not exceed seventy percent (70%).
The interest paid in this case depends on the age of the owner and his fixed monthly income. The form is downloaded in https://www.miamidade.gov/global/service.page?Mduid_service=ser149979746350917 and the process must be completed by March thirty-one (31).
3. Quarterly payments: the deadline to apply for this option expires on April thirty (30). Those who choose this modality will make quarterly payments based on an estimated tax equal to the taxes applied to the property in the previous year. To qualify the amount to be paid must be greater than one hundred (100) dollars. If the owner has an escrow account they are not eligible.
Finally, there is a benefit called Homestead Exemption and it applies as long as Miami is the owner’s primary place of residence. To access the subsidy you must register in https://www.myflorida.com/ . The benefits of this subsidy include:
1. Up to $50,000 can be deducted from the actual value of the property at the assessable price
2. The real value of the property may not rise more than three per cent year after year.
3. If it is the owner’s main home, it will be protected from creditors against any eventuality.
Each group of beneficiaries has different advantages such as:
1. Widow or Widower: $500 less in taxes. If you remarry you lose the benefit. It is necessary to present the death certificate of the spouse.
2. Disabled: $500 is deducted from the total payment.
3. Veterans with disabilities: applicable if you have at least ten percent (10%) disability
4. Older adults: the appraisal of the property is reduced. Eligible from the age of sixty-five.
5. Veterans with total and permanent disabilities
6. There are partial or total exemptions to charitable, religious, educational, scientific or governmental institutions.
In PFS Realty Group given our real estate activity we are focused on advising those individuals and families who are interested in making investments of this type in Miami and South Florida, we have been working for more than twenty (20) years and for this, twenty (20) years that give us a specialty in what we do, We have expert tax advisors, if you want to explore real estate investment opportunities, we can schedule a meeting, face-to-face or virtual, to expand this information. Write to us at info@pfsrealty.kinsta.cloud and also visit our www.pfsblog.kinsta.cloud website to learn more about us.