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Homestead exemptions and property taxes

First time home buyer here with a couple of property tax questions. It has been explained to me that 54 mills is the total property tax rate for my soon-to-be residence (Auburn, Alabama). We close 03/23/07. This millage rate is applied to 20% of the assessed value of the property to determine the property taxes due. I have heard that a property that is "Homestead Exempt" has the applicable percentage reduced from 20% to 10%. What is the homestead exemption? Who is eligible? What are the caveats/ limitations? How do I find out more about my specific property? Thanks in advance.

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Reply to
kastnna
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"kastnna" wrote

Homestead exemption is the method used by the county to reward homeowners who reside in the house. That way the higher tax rate is on the second home, rental property, commercial property, etc., you know "those rich folks". Everyone who resides in the home they purchased. In theory you can only have one homestead that can be exempted. There may be issues if you use part of the home for business or rental. To find out more, go down to the county courthouse to the property tax office, generally that of the tax assessors office.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net

Reply to
Paul Thomas, CPA

snipped-for-privacy@auburnalum.org (kastnna) posted:

Here in FL, where I live, qualification for the Homestead allowance simply requires that you attest your property is your main home and residence. For this, one receives a $25,000 reduction in assessed value. But every state (or county) will have its own variations. (My home county, for example, offers a "bonus" exemption for low-income seniors.) I would suggest you visit your state's official website, and also your county [assessor's] website. You could use the site search engine to seek info on "Homestead tax exemptions." Bill

Reply to
Bill

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