Homestead exemption

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The homestead exemption is the legal regime to protect the value of the resident's house from property taxes, creditors, and circumstances arising from the deaths of the homeowners' spouses.

The law is found in the laws or constitutions of many states in the United States. The liberation of homesteads in some southern states has its legal origins in the Spanish Imperial liberation legislation. In other countries, they were enacted in response to the economic effects of the 19th century.

Video Homestead exemption

Description

Homestead release law usually has four main features:

1. Prevent forced home sales to meet creditor demands, usually except mortgages, mechanical liens, or sales to pay property taxes
2. Provide a living spouse with shelter
3. Provides exemptions from property taxes at home
4. Allowing tax-free homeowners to vote on a property tax increase to homeowners above the threshold, with a bond request or millage

For statutory purposes, the homestead is one of the primary residence of a person, and no other exceptions may be claimed on any other property wherever, even outside the jurisdictional limits to which the exceptions are claimed.

In some states, homestead protection is automated. In many countries, however, homeowners receive legal protection only if they file claims of homestead exemption with the state. Furthermore, protection may be lost if the homeowner leaves the protected property by taking a primary residence elsewhere.

Maps Homestead exemption

Immunity from forced sales

Different jurisdictions provide different levels of protection under the homes waivers legislation. Some protect only property up to a certain value, and others have land restrictions. If a guesthouse exceeds the limit, the creditor may still impose the sale, but the guesthouse may keep a certain amount of proceeds from the sale.

California protects up to $ 75,000 for single people, $ 100,000 for married couples, and $ 175,000 for people over 65 years old or legally disabled. In California, SB 308 was introduced in early 2015. Originally it was proposed the release of the homestead $ 700,000, regardless of age or marital status. Recently converted to $ 300,000.

Texas, Florida, Iowa, South Dakota, Kansas, and Oklahoma have some of the largest homestead protections in the United States in terms of protected property values.

The Texas homestead exemption has no dollar limit and has a 10 hectare (4.0 hectare) clearance for homesteads within municipalities (urban homes) and 100 acres (40 hectares) for those outside the municipality (rural homestead). A rural acre designation is doubled for a family: 200 acres (81 acres) can be protected from lenders in Texas for rural guesthouses.

In Kansas and Oklahoma, the exemption protects 160 acres (65 hectares) of land of any value outside the boundaries of municipal enterprises and 1 acre (0.40 hectare) of land of any value within the boundaries of municipal enterprises. Most homestead exclusions include land including equipment and upgrades, such as buildings, timber, and landscaping.

New Mexico has a $ 60,000 exemption. Alaska has a $ 54,000 exemption.

Colorado has a $ 75,000 exemption, or $ 105,000 for people over 60 years old or disabled.

In most states, the real dollar value of "protection" provided by legislation has been reduced, as the release of the dollar amount is rarely adjusted for inflation. The protective intent of the law, with some important exceptions as mentioned above, has been eroded in most states.

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Property tax exemption

House waivers most often only on a fixed amount of money, such as the first $ 50,000 of the assessed value. The rest is taxed at the normal rate. A house worth $ 150,000 would then be taxed only $ 100,000 and a house worth $ 75,000 would then be taxed only $ 25,000.

Exceptions are generally intended to turn property taxes into progressive taxes. In some places, the waiver is paid with the local or state sales tax (or equivalent unit).

Example

• California frees up the first $ 7,000 dwelling from property taxes.
• Colorado allows the first 50% to $ 200,000 deduction (equivalent to $ 100,000 exemption) for seniors (over age 65) who have lived on their property for ten consecutive years.
• Georgia allows 1% HEST only in some districts.
• The Florida homestead allows $ 50,000 exemption for all property taxes assessed for property taxes, plus $ 50,000 for all taxes except school fees. In addition, the increase in valuation should not exceed lower than 3% of the assessed value of the prior year or the percentage change in the CPI.
• Louisiana waived the first $ 7,500 homestead housing from a local property tax.
• Michigan frees homeowners from paying millage operations of the local school district.
• the Mississippi exclusion of all ad valorem taxes assessed against the property; this is limited to the first $ 7,500 of the appraised value or $ 300 of actual exempt tax money.
• The New York School Tax Assistance (STAR) Program excludes the first $ 30,000 of the primary home value assessed by the school district tax; the release is limited to owners with earnings below $ 500,000. Additional exceptions are available for people over 65 with limited earnings. The STAR program only applies to school taxes; there is no exclusion of the homestead for taxes levied by other municipal entities. New York prevents New Yorkers from claiming this exemption if New Yorkers own property in another state and claim a similar exception in that other state.
• Oklahoma allows a $ 1000 deduction from the assessed appraisal, about $ 75 to $ 125 savings per year, if the owner proposes a homestead exemption with a local county clerk.
• Rhode Island freed the first 20% of house value from property taxes.
• Texas enables a reduction, with the additional exceptions available for local taxes, people over 65 years old and people with disabilities. It also requires a school district to offer $ 25,000 exemption (but not other taxable areas, such as cities and districts). Texas further limits the increase in ratings on homes by up to 10% from the previous year's value.

• Kentucky, for 2013 and 2014, the waiver is set at $ 36,000. Upon approval, homeowners aged 65 and older do not have to reapply for welfare exceptions every year.

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Note

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References

• Comb, Susan. Texas Property Tax Code 2006 Edition Retrieved 22 May 2007.

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External links

• Homestead waiver rule in different states at Law Check
• Ã, Mereness, Newton Dennison (1911). "Homestead and Legal Exemption". EncyclopÃÆ'Â|dia Britannica (issue 11).

Source of the article : Wikipedia