TAXES & INSURANCE

TAXES AFFECTING REAL ESTATE:
Tax rates are expressed in mills. A mill equals 1/1,000 of a dollar; 10 mills equal one cent.
Other fees apply, depending on the area of Flagler County you live in.
FOR DEFINATIVE ANSWERS TO YOUR TAX QUESTIONS,
CALL THE COUNTY TAX OFFICE AT 386-313-4160.

   The US Constitution prohibits the federal government from taxing real property, but
allows state and local governments to do so. Florida is one of the states that does not
tax real estate at the state level.

   Real Estate taxes--ad valorem, meaning according to value--(property taxes) are
based on the value of the real property, as determined by the county property
appraiser.

   Sales price is a factor is a factor in determining price, but is not the controlling factor.
Assessed value is the value of a property established for property tax purposes. The
Florida Supreme Court ruled that all property be assessed at just value, the fair and
reasonable value based on objective valuation methods.

   Property taxes in Florida are levied on a calendar year basis, but paid in
arrears. The 2006 tax bill received was for the 2005 tax period. Taxes are payable
Nov 1 each year, with a discount offered for prompt payment. Payments made after
March 1 must be for the full amount. Property taxes for the year become delinquent on
April first.

   Property taxes constitute a lien on property and are superior to all other liens.

How to estimate property taxes:
    16.4 mills=.0164011 X $1000= $16.40 per thousand dollar value or $1640 per $100,000.
                   A $200,000 home will owe taxes of $3280, for estimating purposes.

The Homestead Exemption is calculated: $25,000 x .0164011= $410.03
               The $25,000 homestead exemption represents a tax savings of $ 410.03

   Taxes are likely to be reevaluated at the time of sale. However, taxes are not likely
to exactly equal your price times the mill rate. Property is taxed at just value, not
sales price.

   The first tax bill you receive will reflect the previous owner’s tax rate.

HOMEOWNER’S INSURANCE is more expensive east of I95 as the land
is closer to water. The insurance binder can be issued anytime for property coverage.
However, if there is a named storm within 100 miles of shore, insurance coverage will
not go into effect. Pay the premium when the binder is issued prior to closing to
guarantee coverage of the property during tropical storm season.
                          Compare Insurance Rates: http://www.shopandcomparerates.com

FLOOD INSURANCE: Every property in Palm Coast is located in a floodplain. Some
homes are situated in a Special Flood Hazard Area (SFHA), while others are located in 
minimal to moderate risk areas, designated as Zone X. If you have a federally backed 
mortgage, you are required by law to carry flood insurance. Regardless of where your 
property is located, purchase Flood Insurance. Flood coverage is issued by the federal 
government. Pricing is the same regardless of which agency issues the policy.
For more information contact: www.floodalert.fema.gov

GET A CLUE REPORT:
(An acronym for ChoicePoint Asset Co.’s Comprehensive Loss Underwriting Exchange history) 
Based on information submitted by insurers to the CLUE database, the report includes dates, 
types, and the amount paid for each claim submitted for a specific home. If the report shows no
 losses, a buyer can feel confident that no one has filed a fire, flood, windstorm or other claim
against an insurer. If a claim has been filed, the buyer will know to have the area 
professionally inspected.

 If the report shows that a claim for mold was filed, beware! A mold claim often makes
it difficult for new owners to obtain homeowners insurance; and if they can obtain
insurance, it may be extremely expensive. Only the homeowner can obtain these
reports, so the buyer will have to ask the seller to purchase one. The report
costs $19.50 from the ChoicePoint Web site.