It’s Not the Sun, It’s the Taxes; Florida’s Triple Tax Advantage for Snowbirds May Get Further Boost on January 29th

BOCA RATON, Fla., Jan. 15 /PRNewswire/ — Many snowbirds with homes both in Florida and a northern state already have a big tax advantage if they have changed their domicile to Florida. If the voters on January 29th approve an amendment to the state constitution, that advantage will increase according to Allan R. Lipman, an attorney who is licensed to practice in both New York and Florida.

Florida has no personal income or estate tax and gives a tax break to those northerners who qualify for a Florida homestead exemption. Some snowbirds who do not qualify are paying twice or three times the real estate taxes that a qualifying neighbor is paying with a home of the same value. This is because the homesteader has enjoyed a 3% cap on annual increases in their assessments. But one drawback has been that the homestead cap advantage is wiped out when the homesteader moves to a new home or condo.

According to Lipman, for many that drawback will disappear because the proposed amendment will make the tax advantage “portable” and the homesteader who buys a new residence in many instances will be able to carry the real estate tax savings over and reduce the assessment that would otherwise be applicable.

The snowbirds who remain domiciled in a northern state may be in for a big surprise if the amendment is passed. For some, the gap in the real estate taxes they are paying compared to their homesteaded neighbor is likely to increase. This is because the taxing authorities whose budgets are reduced because of the new tax breaks for homesteaders are likely to balance their budget by increasing their tax rate thereby placing a heavier tax burden on non-homesteaders.

This is all explained in more detail by Lipman at www.snowbirdguide.com. The site also features a complimentary 35 minute webcast explaining the detailed steps to change domicile, and for those who already have changed their domicile, suggestions as to how to respond if a northern domicile audit occurs and their change of domicile is challenged.

SOURCE Allan R. Lipman

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