The Homestead Property Tax Deferral Act provides for a program in which eligible individuals entitled to claim homestead tax exemption under the provisions of F.S. 196.031(1) may elect to defer payment of a portion of the taxes levied on that homestead by filing an annual application with the Broward County Tax Collector.
The Broward County Records, Taxes and Treasury Division determines whether or not taxes are eligible for deferral, based on requirements of the statute. An interest rate is applied to deferred taxes. Interest rates are determined by the Florida Department of Revenue.
In addition to the requirement that the applicant be entitled to claim homestead exemption on the property, other eligibility requirements include:
- Applicant is entitled to claim senior exemption – the portion of ad valorem taxes plus non-ad valorem assessments which exceed 3 percent of the applicant's household income for the prior calendar year may be deferred;
- Applicant's household income for the prior calendar year is less than $10,000 or is less than the amount of the household income designated for the additional homestead exemption and the applicant is 65 years of age or older – ad valorem taxes plus non-ad valorem assessments may be deferred in their entirety;
- No taxable income or prior year income less than $10,000 – entire tax amount of ad valorem and non-ad valorem assessments may be deferred (applies to anyone regardless of age);
- Taxes that exceed 5 percent of applicant's household income for the prior calendar year – tax may be deferred up to the amount that exceeds the income (applies to anyone regardless of age);
- Total amount of deferred taxes, non-ad valorem assessments and interest plus the total amount of all other unsatisfied liens on the homestead cannot exceed 85 percent of the assessed value of the homestead;
- Primary mortgage financing on the homestead may not exceed 70 percent of the assessed value of the homestead;
- Fire and extended coverage insurance must be in force with a loss payable clause to benefit Broward County Records, Taxes and Treasury, and a clause obligating the carrier to notify the loss payee of late premium payment, cancellation or non-renewal of policy on the property;
- A copy of the income tax return from the prior year for each member of the household must be submitted.
Download and complete an Application for Homestead Tax Deferral (Form DR-570).
Applications are due to the Tax Collector's office on or before March 31 following the year in which the taxes and non-ad valorem assessments are assessed. A new application must be submitted each year. Notification of approval or denial is typically sent to the property owner within one week.
Deferred taxes become due and payable:
- If there is a change in the use of the tax-deferred property such that the owner is no longer entitled to claim homestead exemption for such property or such person fails to maintain the required fire and extended insurance coverage – the total amount of deferred taxes, non-ad valorem assessments and interest for all previous years shall be due and payable November 1 of the year in which the change in use occurs or on the date failure to maintain insurance occurs and shall be delinquent on April 1 of the year following the year in which the change in use or failure to maintain insurance occurs.
- In the event there is a change in ownership of a tax-deferred property – the total amount of deferred taxes, non-ad valorem assessments and interest for all previous years shall be due and payable on the date the change in ownership takes place and shall be delinquent on April 1 of following said date.
- During any year in which the total amount of deferred taxes, non-ad valorem assessments and interest exceeds 85 percent of the assessed value of the homestead – tax shall be due and payable within 30 days of receipt of notice from the tax collector and failure to pay the amount due shall cause the total amount of deferred taxes and interest to become delinquent.
- Each year, upon notification each owner of property on which taxes, non-ad valorem assessments and interest have been deferred shall submit to the tax collector a list of and the current value of all outstanding liens on the homestead. Failure to respond to this notice within 30 days shall cause the total amount of deferred taxes, non-ad valorem assessments and interest to become payable within 30 days.
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