Monday, November 22, 2010

CONTINUED AGRICULTURAL VALUATIONS WHILE HOLDING PROPERTY FOR SALE [FLORIDA]

Owners of investment real property in Florida often rent out their property to farmers - not so much for the rent but to obtain an agricultural classification for ad valorem tax purposes. The agricultural classification will typically result in much lower taxes.

Florida law now expressly provides that the agricultural classification can continue even if the real property is listed for sale. The Florida legislature had previously passed this law, but it was vetoed by Governor Charlie Crist. The legislature voted to override the veto and thus is now law (effective July 1, 2010).

The classification applies based on the use of the property on January 1 of the tax year. Thus, owners who put their property up for sale during a period that includes January 1 can now squeeze out at least one more year of lower ad valorem taxes.


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