Estimating Sarasota Property Taxes
We often get asked the question from potential buyers, "What will my property taxes be if I buy this property?" Many Realtors will say that a good rule of thumb in estimating Sarasota property taxes is 1.0%-1.5% of the value of the property.
Is this true?
If you visit the Sarasota County Property Appraiser website regarding estimating Sarasota property taxes it states:
While we would like to provide a tax estimate that is meaningful, future taxes cannot be calculated due to a multitude of variables, many of which will not be determined until Notices of Proposed Taxes and Proposed or Adopted Non-Ad Valorem Assessments form (TRIM Notice) are mailed in August. The best estimate of taxes available is the current amount reflected on the Tax Collector's website, http://www.sarasotataxcollector.com/.
If you recently purchased a property or are in the process of purchasing a property, please note that all existing exemptions, caps and discounts that are on the property from the previous owner will be removed and the assessed value will be returned to market value.
WHY ESTIMATING TAXES CAN BE DIFFICULTWith the passage of Save Our Homes Amendment (3% assessment increase on homesteaded property) and more recently Amendment One (10% assessment cap on non-homesteaded property), the formula for estimating taxes has become much more complicated in recent years.
Information that needs to be considered when estimating taxes since the passage of the amendments includes but is not limited to:
- Location of the property
- Taxable value of the property
- Taxing district millage rate to apply in the calculation
- What effect has the market had on the property?
- Whether owner(s) benefit from any exemptions and/or discounts and how these are applied
- Whether the owner(s) have or will be transferring any Save Our Homes cap value
Various factors must be considered when estimating taxes, making the calculations different for each specific scenario.
As stated above, future taxes cannot be calculated due to a multitude of variables, many of which will not be determined until Notices of Proposed Taxes and Proposed or Adopted Non-Ad Valorem Assessments form (TRIM Notice) are mailed in August. We encourage all property owners to read their TRIM Notice carefully and to contact us with any questions.
Basically, Sarasota county is saying that it is difficult (and risky) for them to estimate taxes and that you should estimate based on the last year's taxes minus any exemptions the homeowner may have had.
Is 1.0%-1.5% a Good Rule of Thumb?
I decided to do a little test to see if this rule of thumb was still good. I downloaded a sample of sales that occurred in January and February of 2018 in Sarasota county. My sample size was 646 homesteaded and non-homesteaded properties with prices ranging from $107,000 to $4,250,000. I then compared these sales prices to their most recent tax bill. When you mash all of these properties together and average their tax liability in comparison to their sales price it came to:
So, given the variables above it does appear that 1.0%-1.5% is still a good rule of thumb when estimating Sarasota county property taxes.
Just for kicks I broke it down even further by price range.
|Sales Price||Avg Property Taxes/Sales Price||Average Property Taxes|
|$100,000 - $199,999||1.27%||$1,992|
|$200,000 - $299,999||1.14%||$2,799|
|$300,000 - $399,999||1.10%||$3,823|
|$400,000 - $499,999||1.08%||$4,822|
|$500,000 - $599,999||1.15%||$6,233|
|$600,000 - $699,999||1.02%||$6,591|
|$700,000 - $799,999||1.05%||$7,693|
|$800,000 - $899,999||1.25%||$10,674|
|$900,000 - $999,999||1.12%||$10,664|
|$1m - $2m||1.03%||$14,089|
I hope you found the above information helpful. Remember, we are using these estimates as a "rule of thumb". Which is defined as "a broadly accurate guide or principle, based on experience or practice rather than theory." If you are looking to purchase please do your homework when estimating Sarasota property taxes.
If we can help you buy or sell a property please feel free to contact us.