Homestead Tax Deferral Plan

Property Taxes

Homestead Tax Deferral Plan

Florida law permit any person entitled to claim homestead exemption to defer payment and interest of a portion or all taxes and non-ad valorem assessments levied, subject to certain age and household income conditions. The deferred portion of taxes become a priority lien on the property and must be paid in full upon sale, change of ownership, or change in program eligibility. Application to defer taxes may be obtained from the Tax Collector's Office and must be submitted on or before March 31st following the year in which the taxes and non-ad valorem assessments are assessed. Homestead Tax Deferral Applications must be submitted each year to determine continued eligibility.

Qualifying for the Homestead Tax Deferral Plan:

  • Be qualified to claim homestead exemption on the property
  • Meet certain household income and age requirements
  • Must have fire and extended coverage insurance in an amount at least equal to the total of all outstanding liens, including a lien for deferred taxes, non-ad valorem assessments, and interest, with a loss payable clause to the Tax Collector.
  • If there is a mortgage on the property, the unpaid amount cannot exceed 70 percent of the just value of the property
  • The total amount of deferred taxes, non-ad valorem assessments, and interest, plus the total amount of all other unsatisfied liens on the property cannot exceed 85 percent of the just value of the property
How do I qualify for the Tax Deferral Plan?

Complete and submit the Application for Homestead Tax Deferral to the Tax Collector no later than March 31st, the year after the tax year long with all applicable supporting documentation.

  • Be qualified to claim the homestead exemption.
  • Submit proof of fire and extended coverage home insurance that is in excess of liens and deferred taxes.
  • Provide proof of income from the previous year.
  • Provide proof to to the Tax Collector's office that the insurance policy has a loss payable clause and a clause obligating the carrier to notify the Tax Collector of cancellation or non-renewal.
  • If you have a home mortgage, it cannot exceed 70% of the assessed value of the property.
  • Have no liens or deferred taxes totaling more than 85% of the assessed value of the property.
When do the taxes become due and payable?

The deferred taxes, assessments, and interest may be paid at anytime. However the total amount must be paid when:

  • There is a change in the use or ownership of the property such that the owner is no longer eligible for the tax deferral. The deferred amounts and interest for all previous years are due November 1, the year that change occurs.
  • The owner does not maintain the required fire and extended insurance coverage. The deferred amounts and interest for al previous years are due on the date insurance stops.

The amount for all the previous years become delinquent on April 1, the year after the change occurs.

Are there other conditions that can require me to pay all or part of the deferred amount?

During any year the total amount of deferred taxes, interest, assessments, and other unsatisfied liens becomes more than 85% of the just value, the portion that exceeds 85% is due. The owner must pay that amount within 30 days after the tax collector notifies the owner. If the owner does not pay, the total amount of deferred taxes, interest, and assessments become delinquent.

Each year the tax collector will notify owners of property with deferred payments to submit a list of all outstanding liens on the homestead and the current amount of each lien. If the owner does not send the information within 30 days, the total amount of taxes, assessments, and interest will be due within 30 days.

What else do I need to know?

What is the interest rate on the deferred amount?

The interest rate is equal to the semiannually compounded rate of 1/2% (.5%) plus the average yield to maturity of the long-term fixed-income portion of the Florida Requirement System investments at the end of the quarter before the sale of the deferred payment tax certificates. However, the interest rate may not exceed 7%.

Is there a lien on my property?

Yes, the deferred taxes, non-ad valorem assessments, and interest are a priority lien on the homestead.