A recent social media post by Deva Hazarika has sparked discussion regarding Florida's property tax system, alleging that "Mila's position" could allow wealthy cash buyers to indefinitely avoid property taxes. The tweet claims, > "This person doesn’t understand that with Mila’s position, rich people who buy with cash up front will never owe any property tax ever." This assertion appears to misinterpret the role and statements of Mila Schwartzreich, General Counsel for Broward County Property Appraisers, who has clarified existing Florida property tax law.
Mila Schwartzreich has explained how Florida's property tax system operates, particularly concerning property reassessments and the impact of all-cash real estate transactions. Her statements clarify the legal framework, not advocate for policies that exempt certain buyers from property taxes. Under Florida law, properties are reassessed at "just value," or market value, following substantial improvements or a change in ownership.
The "Save Our Homes" (SOH) cap is a key component of Florida's property tax structure, limiting annual increases in a homesteaded property's assessed value to 3% or the consumer price index, whichever is lower. However, this cap resets upon a change of ownership, meaning new buyers, including those making all-cash purchases, will have their property assessed at its current market value. This can lead to significant tax increases for new owners, as demonstrated by a Broward County couple whose property taxes surged after renovations and a reassessment influenced by high market values driven by cash sales.
All-cash offers, prevalent in competitive housing markets, contribute to rising home prices. While these sales are valid under Florida law and influence market-based assessments, they do not exempt property owners from tax obligations. Instead, they can drive up the assessed values for new purchases, leading to higher property tax bills for those transactions. Schwartzreich has stated that appraisers must factor these sales into their assessments, and cash sales are considered valid even if the buyer paid above asking.
The Broward County Property Appraiser's office, where Schwartzreich serves, is responsible for determining property values and applying exemptions, not for setting tax rates or collecting taxes. Local taxing authorities establish the millage rates, which are then applied to the assessed values to calculate property taxes. Therefore, the notion that cash buyers "will never owe any property tax ever" directly contradicts how Florida's property assessment and taxation system is designed and implemented.
