This time of year many Florida homeowners are understandably focused on property tax savings from the Florida homestead tax exemption. However, following the unprecedented 2024 hurricane season that we Floridians experienced, it’s important to remember that another valuable tax relief option exists: the Catastrophic Damage Tax Refund.
This refund provides financial assistance to property owners whose homes were rendered uninhabitable due to unforeseen events such as hurricanes, fires, and floods. Given the recent severe weather events affecting Florida, understanding this refund is more important than ever.
Joe, tell me more!
Florida Statute § 197.319, which went into effect for 2023, enables some homeowners to receive a refund of a portion of their property taxes if they were affected by a “catastrophic event.” and their home was uninhabitable for at least 30 consecutive days due to the catastrophic events.
What is a Catastrophic Event?
Florida Statutes § 197.319(1)(a) defines “catastrophic event” to be “an event of misfortune or calamity that renders one or more residential improvements uninhabitable. The term does not include an event caused, directly or indirectly, by the property owner with the intent to damage or destroy the residential improvement.”
Here’s a breakdown of the key points:
- Eligibility:
- Residential properties: Both homestead and non-homestead properties are eligible, but not commercial property.
- Uninhabitable for 30 days or more: The property must be rendered uninhabitable for at least 30 consecutive days due to the catastrophic event.
- Catastrophic event: This includes severe weather events like hurricanes, tornadoes, and floods, as well as non-weather events such as fires and explosions.
- Refund Process:
- Application: Property owners must file an application for refund with the property appraiser by March 1 of the year following the catastrophic event.
- Damage assessment: The property appraiser will assess the damage to the property and determine the extent of the uninhabitable period.
- Refund calculation: The tax collector will calculate the refund amount based on the number of days the property was uninhabitable and the applicable property tax rate.
- Refund issuance: The refund will be issued to the property owner.
Important Note:
- This law applies to catastrophic events occurring in 2023 and thereafter.
- Specific details and eligibility requirements may vary, so it’s advisable to consult with your local property appraiser or tax collector’s office for accurate information.
- Under the law, a residential improvement does not include a structure that is not essential to the use and occupancy of the residential dwelling or house, including, but not limited to, a detached utility building, detached carport, detached garage, bulkhead, fence, or swimming pool, and does not include land.”
How Do You Calculate Your Potential Catastrophic Event Tax Refund?
Let’s look at a simplified hypothetical situation.
Imagine a home valued at $450,000 that was rendered uninhabitable for 120 days due to a hurricane. After the storm, the property’s value dropped to $200,000. The annual property taxes on this home were $3,000.
Here’s how to calculate the refund:
- Calculate the value loss:
- Value loss: $450,000 – $200,000 = $250,000
- Percentage of value loss: ($250,000 / $450,000) * 100% ≈ 55.56%
- Calculate the percentage of uninhabitable days:
- Percentage of uninhabitable days: (120 days / 365 days) * 100% ≈ 32.88%
- Calculate the damage differential:
- Damage differential: 55.56% * 32.88% ≈ 18.28%
- Calculate the refund amount:
- Refund amount: $3,000 (amount of annual taxes) * 18.28% ≈ $548.40
So, in this hypothetical scenario, the homeowner would receive a refund of approximately $548.40.
Remember – this is just an example…
- Exact calculations may vary based on specific property values, tax rates, and the duration of the uninhabitable period.
- Consult with your local property appraiser or tax collector’s office for accurate information and assistance with the application process.
- Deadlines apply: Be sure to file your claim by the specified deadline to ensure you receive your refund.
Take Action Now.
The 2024 Florida hurricane season was historic and devastating. Those affected should be aware of this important tax relief opportunity.
- If you were affected, contact your local property appraiser’s office today to learn more about the Catastrophic Damage Tax Exemption and to begin the application process.
- If a neighbor, friend, or loved one was affected, you can help them by making them aware of this potential property tax relief.
Those affected can potentially receive a reduction in their property tax burden. Contact your local property appraiser’s office for specific information and to begin the application process. To get you on the right path, links to the offices of some of our neighboring county property appraiser offices are below.
Local Property Appraiser Office Information
