sarikurlandbankruptcylaw · 8 months ago
Text
Tumblr media
0 notes
ericvick · 4 years ago
Photo
Tumblr media
Beware these 15 worst states for taxes on your retirement
Tumblr media Tumblr media
Beware these 15 worst states for taxes on your retirement
Maybe you want to spend your retirement somewhere sunny. Or maybe a view of the mountains is more your style.
But before you start making plans, it’s worth looking at the tax situation in any state you’re considering. Some places impose significantly harsher taxes on retirees than others.
Our rankings take into consideration how much tax each state imposes on retirement income, any state-imposed estate or inheritance taxes, and the Tax Foundation’s estimates for average state and local sales taxes and the average, effective property tax. We also highlight some of the tax credits and exclusions seniors may qualify for.
An expert can help you look at your options. Certified financial planners who are “fiduciaries” have strategies just for retirees — and they’re bound by law to put your interests first.
Here are the 15 worst states when it comes to taxing retirees, counting down to the state where seniors face the worst tax burdens.
15. Massachusetts
Tumblr media Tumblr media
Matthew Botelho / Shutterstock
Tax on retirement income: Yes
State income tax: 5% flat rate
Average property tax: 1.15% of home value
Average state and local sales tax: 6.25%
Massachusetts does not tax Social Security benefits or government pension income, but most other retirement income is taxed at a flat rate of 5%.
The Bay State has the 18th-highest average property tax rate in the country, with owners of a $350,000 house paying roughly $4,025 in tax per year.
Fortunately, residents over the age of 65 who earn less than a certain amount (for the 2020 tax year, that’s $61,000 for individuals and $92,000 for married couples who file jointly) are eligible for a property tax credit of up to $1,150.
Massachusetts also has an estate tax — a tax on the fair market value of your assets after you die — ranging from 0.8% to 16% on estates worth over $1 million. This $1 million threshold is tied with Oregon’s for the lowest in the country.
14. Ohio
Tumblr media Tumblr media
f11photo / Shutterstock
Tax on retirement income: Yes
State income tax: 0% to 4.797% (highest rate applies to incomes over $217,400)
Average property tax: 1.62% of home value
Average state and local sales tax: 7.17%
The Buckeye State does not tax Social Security benefits, although income from most other retirement accounts is taxed as regular income.
Story continues
Seniors aged 65 or older can claim a retirement income credit of up to $200 per year on sources of income other than their Social Security, as well as a senior citizen tax credit of $50.
Ohio’s property taxes are the ninth-highest in the country, but seniors who earn less than a certain amount ($33,600 during the 2020 tax year) may qualify for the homestead exemption, which exempts up to $25,000 of their home’s market value fromlocal property taxes.
Calculate how much more you need to save each month to reach your retirement nest egg goal.
13. Maryland
Tumblr media Tumblr media
Hunter Herrman / Shutterstock
Tax on retirement income: Yes
State income tax: 2% to 5.75% (highest rate applies to incomes over $250,000)
Average property tax: 1.04% of home value
Average state and local sales tax: 6.00%
Although Maryland is known as the Free State, don’t expect much in the way of freebies if you’re planning to retire there. While Social Security benefits are not subject to state income tax, most other forms of retirement income are.
On the bright side, residents 65 or older may qualify for an exclusion of up to $31,100 on distributions from 401(k), 403(b), and 457 plans and income from public and private pensions.
In addition to a state income tax of 2% to 5.75%, Maryland’s 23 counties and Baltimore City also levy local income taxes ranging between 2.5% and 3.2% of residents’ taxable income.
Property taxes in Maryland also are fairly high, with the owner of a $350,000 home paying around $3,640 a year. Maryland also is the only state in the country to charge both an estate tax and an inheritance tax: Estates are taxed, and so are the heirs who receive a deceased person’s assets.
12. Maine
Tumblr media Tumblr media
Arlene Waller / Shutterstock
Tax on retirement income: Yes
State income tax: 5.80% to 7.15% (highest rate applying to incomes over $52,600)
Average property tax: 1.27% of home value
Average state and local sales tax: 5.50%
Retiring in the Pine Tree State is not all bad: Maine doesn’t tax Social Security benefits, and retirees can deduct up to $10,000 of eligible pension income.
However, all other forms of retirement income are subject to state income tax rates as high as 7.15%, with the highest rate applying to anyone with an income of more than $52,600.
Maine’s property taxes are also pricey, plus Maine charges an estate tax ranging from 8% to 12% on estates valued above $5.7 million. Fortunately, the sales tax in the state is lower than average, and Maine does not allow cities or towns to impose any local sales tax.
To get reach retirement faster, consider building your nest egg through an fee-free investment app.
11. California
Tumblr media Tumblr media
Lucky-photographer / Shutterstock
Tax on retirement income: Yes
State income tax: 1% to 13.30% (highest rate applies to incomes over $1,000,000)
Average property tax: 0.74% of home value
Average state and local sales tax: 8.66%
Let’s start with some good news: If you’re planning to retire in the Golden State, your Social Security benefits are exempt from state income taxes.
Unfortunately, all of your other retirement income is fully taxable, and at the highest tax rate in the country if you earn more than $1 million a year. (If that’s the case, well done.)
Another bright spot for retirees is that the average property tax rate in California is quite low; on a home worth $350,000 you’ll only pay around $2,590. However, it’s worth noting that California has the highest state sales tax in the country at 7.25%, and the cost of living is 18% higher than the national average.
If you need a bit of help navigating California’s complex tax rules, work online with a certified financial planner who can tailor you a tax-light retirement plan.
10. New York
Tumblr media Tumblr media
Ingus Kruklitis / Shutterstock
Tax on retirement income: Yes, but deductible up to $20,000
State income tax: 4% to 8.82% (highest rate applies to incomes over $1,077,550)
Average property tax: 1.40% of home value
Average state and local sales tax: 8.52%
Social Security benefits and military pensions are exempt from state taxes in New York. But the Empire State has the 14th highest property tax rate in the country, with the average taxes on a $350,000 house costing around $4,900.
The good news is that tax breaks are available for seniors at the local level. Local governments and school districts have the option to reduce the assessed value of a senior’s home by up to 50%, depending on the senior’s income.
Some seniors may also qualify for a School Tax Relief (STAR) exemption, in which the first $66,800 of their home value is exempt from school property taxes. In order to be eligible, you’ll need to be at least 65 years of age and have had an annual household income below a certain threshold ($86,300 or less during the 2019-2020 school year).
In addition to property taxes, retired New Yorkers also have to consider the combined state and local sales tax, which is the 10th highest in the country, as well as an estate tax of 3.06% to 16% on estates worth $5.9 million or more.
9. Illinois
Tumblr media Tumblr media
f11photo / Shutterstock
Tax on retirement income: No
State income tax: 4.95% flat rate
Average property tax: 2.05% of home value
Average state and local sales tax: 9.08%
Retirees planning to settle down in the Land of Lincoln had better start saving their pennies (or start taking photos of their grocery receipts), because Illinois has the second-highest average property tax rate in the country.
An owner of a $350,000 house pays roughly $7,175 a year in property taxes, although some seniors in Illinois may qualify for a homestead exemption of up to $8,000, depending on which part of the state they live in.
Aside from the high property taxes, Illinois residents are also subject to the sixth-highest combined state and local sales tax in the U.S., as well as an estate tax ranging from 0.8% to 16% on estates above $4 million.
On the bright side, the state’s flat 4.95% income tax rate is quite low, and income from most retirement plans — including Social Security benefits — is exempt from state taxes.
8. New Jersey
Tumblr media Tumblr media
Mia2you / Shutterstock
Tax on retirement income: Yes, but minimal below $60,000
State income tax: 1.40% to 10.75% (highest rate applies to incomes over $5 million)
Average property tax: 2.21%
Average state and local sales tax: 6.60%
For retirees in the Garden State, property taxes are the biggest weed in the flower bed. New Jersey has the highest average property tax rate in the country: The owner of a $350,000 home has to shell out around $7,735 each year.
New Jersey provides some relief for retirees through its Senior Freeze program, which reimburses eligible seniors for property tax increases. Additionally, senior citizens with an annual household income of $10,000 or less qualify for a property tax deduction of $250.
Most Americans can cushion the blow from high property taxes by cutting costs on their home insurance — many people overpay by $1,100.
Social Security benefits are not taxed in New Jersey, but while the state eliminated its estate tax in 2018, it still charges an inheritance tax of 11% to 16% on inherited property worth $500 or more.
7. Rhode Island
Tumblr media Tumblr media
Michael Sean OLeary / Shutterstock
Tax on retirement income: Yes
State income tax: 3.75% to 5.99% (highest rate applies to incomes over $148,350)
Average property tax: 1.53% of home value
Average state and local sales tax: 7.00%
Rhode Island may offer scenic views of the Atlantic, but you can expect to be hit with a tidal wave of taxation if you decide to retire in the Ocean State. All retirement income is fully taxable, including Social Security benefits, as long as it is also taxed federally.
However, residents earning a certain amount or less ($85,150 for individuals and $106,400 for joint filers in 2019) are exempt from paying state tax on their Social Security benefits.
Property taxes in Rhode Island are the 10th highest in the country, although homeowners 65 or older whose income is $30,000 or less are eligible for a state tax credit. And if you’re still carrying a mortgage, you could be due for a money-saving refinance.
Rhode Island also has an estate tax ranging from 0.8% to 16% on estates worth more than $1.6 million, making it one of only a few states that tax estates valued at under $2 million.
6. Vermont
Tumblr media Tumblr media
Songquan Deng / Shutterstock
Tax on retirement income: Yes
State income tax: 3.35% to 8.75% (highest rate applies to incomes over $204,000)
Average property tax: 1.80% of home value
Average state and local sales tax: 6.22%
If you retire in Vermont, the government will tap your income just like one of the state’s maple trees. The Green Mountain State taxes all forms of retirement income at rates between 3.35% and 8.75%, and that includes Social Security benefits.
However, individuals who earn an adjusted gross income of $45,000 or less, and joint-filing couples who earn $60,000 or less, are eligible for full exemptions from state Social Security tax.
Vermont also charges a flat 16% estate tax on any estate that exceeds $2.8 million in value. And, property taxes are quite pricey, with the average tax on a $350,000 house coming to around $6,300.
Fortunately, some retired homeowners may qualify for Vermont’s Elderly and Permanently Disabled Tax Credit, which is worth 24% of the federal credit for elderly and permanently disabled individuals.
5. Minnesota
Tumblr media Tumblr media
Mitch Boeck / Shutterstock
Tax on retirement income: Yes
State income tax: 5.35% to 9.85% (highest rate applies to incomes over $164,401)
Average property tax: 1.44%
Average state and local sales tax: 7.46%
Minnesota taxes all forms of retirement income — including Social Security benefits — with the exception of military pensions.
However, thanks to the North Star State’s progressive tax system, households earning less than $23,900 are exempt from paying state taxes on their Social Security benefits. The state also offers a special income tax deduction for seniors who make $61,080 or less, or $78,180 or less for couples who file jointly.
Property taxes in Minnesota are the 13th highest in the country, with owners of a $350,000 home paying around $5,040 a year.
The state’s residents also are subject to an estate tax of 13% to 16% on estates valued at more than $3 million, although assets left to a surviving spouse are exempt.
4. Wisconsin
Tumblr media Tumblr media
MarynaG / Shutterstock
Tax on retirement benefits: Yes
State income tax: 4% to 7.65% (highest rate applies to incomes over $263,480)
Average property tax: 1.73% of home value
Average state and local sales tax: 5.46%
Although all Social Security benefits and income from government pensions are exempt from state taxes in Wisconsin, any other retirement income is fully taxable at rates ranging from 3.86% to 7.65%.
As a small concession, retirees who are 65 or older and have an adjusted gross income of less than $15,000 — or $30,000 for married couples filing jointly — can deduct up to $5,000 of their retirement income from their state taxes.
The Badger State does not have any estate or inheritance taxes, but property taxes are quite steep — the fifth highest in the country. The average property tax on a house valued at $350,000 is $6,055, and there are no special exemptions available for low-income seniors.
The state is much less punishing at the cash register. Wisconsin has one of the lowest combined state and local sales tax rates in the country. Wisconsin residents can save even more when they shop by saving pictures of their receipts to earn cash-back rewards.
3. Kansas
Tumblr media Tumblr media
Ricardo Reitmeyer / Shutterstock
Tax on retirement benefits: Yes
State income tax: 3.10% to 5.70% (highest rate applies to incomes over $30,000)
Average property tax: 1.33%
Average state and local sales tax: 8.68%
A ray of sunshine for anyone hoping to retire in the Sunflower State is that all Social Security income and in-state public pension income is exempt from state taxes for seniors earning an adjusted gross income of $75,000 or less. Military and federal government pensions are also exempt.
Unfortunately, income from private retirement plans like IRAs and 401(k)s is fully taxed, and so is income from out-of-state public pensions. Kansas also has the eighth-highest average state and local sales tax, which means that shopping for essentials can be pricey.
The state’s property taxes are on the expensive side, with the average tax on a $350,000 home coming to $4,655. However, the state offers property tax relief for low-income seniors in the form of a refund for up to 75% of property taxes paid.
If you’re looking to push extra savings into your retirement fund, there are several ways you can boost your monthly earnings.
2. Connecticut
Tumblr media Tumblr media
Allan Wood Photography / Shutterstock
Tax on retirement income: Yes
State income tax: 3% to 6.99% (highest rate applies to incomes over $500,000)
Average property tax: 1.70% of home value
Average state and local sales tax: 6.35%
Anyone planning to commit to the Constitution State will have to contend with some serious taxes on their income. All types of retirement income are subject to Connecticut’s income tax, although there are a few exemptions.
Retired Connecticuters with a federal adjusted gross income of $75,000 or more — $100,000 for joint filers — will have 25% of any Social Security benefits that are taxed at the federal level taxed by the state as well.
The Nutmeg State currently has the seventh-highest property tax rate in the country, though the state gives property tax credits to lower-income seniors.
Connecticut imposes an estate tax of between 7.2% and 12% on estates valued at $5.1 million or more. It’s also the only state in the union that imposes its own gift tax — a tax on assets you give away while you’re still alive — that can reach rates as high as 12%.
1. Nebraska
Tumblr media Tumblr media
Oleg Elkov / Shutterstock
Tax on retirement benefits: Yes
State income tax: 2.46% to 6.84% (highest rate applies to incomes over $31,750)
Average property tax: 1.65% of home value
Average state and local sales tax: 6.39%
The prize for the least tax-friendly state for retirees goes to Nebraska, which not only taxes retirement income — including some Social Security benefits — but also imposes high property taxes.
Any Social Security income that is taxed federally will also get hit with Nebraska state income tax, while IRA withdrawals, 401(k) funds and pensions are all fully taxable.
Residents of the Cornhusker State are also subject to an inheritance tax that ranges from 1% to 18%. Remote relatives will have to fork over 15% on anything worth over $15,000, and all other heirs are subject to the full 18% on anything valued at $10,000 or more.
And if all that weren’t enough of a financial burden, Nebraska also has the eighth-highest property taxes in the country. On a home valued at $350,000, the average property tax would be $5,775.
0 notes
biofunmy · 5 years ago
Text
$799,000 Homes in Maryland, Texas and Florida
Baltimore | $799,000
An 1880 brick rowhouse with six bedrooms and three and a half bathrooms, on a 0.08-acre lot
This four-story building is in the historic downtown Bolton Hill neighborhood, facing a narrow two-block-long park with a fountain. It is less than a mile northwest of the Amtrak train station and a mile southeast of the 745-acre Druid Hill Park, which has a zoo, reservoir, community pool and farmer’s market. Maryland Institute College of Art is a half-mile east, and the Johns Hopkins University medical campus is two miles southeast. It is also near the Joseph Meyerhoff Symphony Hall, the Patricia & Arthur Modell Performing Arts Center at the Lyric and the University of Baltimore.
Size: 4,800 square feet
Price per square foot: $166
Indoors: Built as a single-family residence and later divided into apartments, the house was restored to its original configuration after the sellers bought it in 2013. At one point, the back staircase had been removed and an elevator installed; it is not currently operable but can be repaired. A level entrance at the rear means that the house can be made fully accessible without structural alterations.
The house is attached on only one side, giving center rooms access to air and light. Beyond the front vestibule, double doors inset with stained glass open to a hallway that runs along the left side, in parallel with three parlors connecting on the right. All of these rooms have high ceilings with decorative plaster molding, tiger oak floors and pocket doors. In addition, the living room, at the front, has a carved marble decorative fireplace mantel, and the dining room, at the back, contains a bay window with stacked sets of pocket shutters. Next to the dining room is a butler’s pantry with glass-front upper cabinets and a sink. There is also a powder room.
The lower level has been opened up to create a room running the entire length. In the center is a kitchen with a floor of inset tile (the rest of the level has wood floors), marble-topped black work tables and black appliances. On either side are dining and lounging areas — the one at the rear of the house walks out to the backyard. A laundry room off to the side includes a full bathroom with a walk-in shower.
Three bedrooms are on the second floor. The largest is in the front and includes a plaster ceiling medallion, a decorative fireplace flanked by bookshelves, and a sitting room shared with the middle bedroom. The bedroom at the back has a bay window, oak parquet floors and a decorative fireplace with glazed green tiles and a carved wood mantel. The hall bathroom on this floor includes a vintage pedestal sink and a combined tub and shower.
The third floor is taken up by a master bedroom, an office, and a sitting room (which can also be used as bedrooms.) An updated bathroom has a skylight, a marble-topped sink and a walk-in shower.
Outdoor space: The brick paved backyard has planted areas and is bordered by a two-car garage that opens to an alley behind it.
Taxes: $10,143 a year
Contact: Avendui Lacovara, Monument Sotheby’s International Realty, 443-326-8674; lacovaragroup.com
Houston | $799,000
A modern-style townhouse built in 2004, with three bedrooms, three and a half bathrooms and a swimming pool, on a 0.08-acre lot
Allen Bianchi and Carol Isaak Barden, a local architect and builder, designed and constructed this stucco-sided townhouse with no shared walls. It is in the Rice Military neighborhood, about three miles west of downtown Houston and a mile and a half east of Memorial Park and its many recreations (golf, tennis and running trails to name a few). The area is thick with coffee shops, restaurants and bars.
Size: 2,847 square feet
Price per square foot: $281
Indoors: The front door is at the base of the three-story home, next to a two-car garage, which also provides access. Near the entrance is a room with a polished concrete floor and a wall of open bookshelves; the room can be used as a guest room or entertainment space. (It has access to two walk-in closets and a full bathroom.) Sliding glass doors open to the pool area.
The open-plan second floor includes a living and dining room with mahogany floors and a concrete gas fireplace. The windows that wrap around the front are shaded by the building’s cantilevered upper floors and surrounding trees. The kitchen at the back has wood cabinets with concrete countertops and a walk-in pantry. There is also a half-bath with a concrete sink.
The third-floor master suite includes a walk-in closet with custom shelving. The master bathroom has a vanity with double sinks and a separate shower and tub faced in travertine. There is also a guest bedroom with a walk-in closet and an en suite bathroom.
Outdoor space: The fenced backyard pool area has concrete paving and crushed granite. It includes a vine-covered pergola, a fireplace, a shower and colored lighting.
Taxes: $14,631 a year (2018, not including homestead or other exemptions)
Contact: Adriana Longoria Banks, John Daugherty Realtors, 713-898-6557; johndaugherty.com
Sarasota, Fla. | $799,000
A 1985 ranch house with four bedrooms, three bathrooms and a swimming pool, on a 0.34-acre lot
This house is in the Landings, a gated enclave between Highway 41 and the Intracoastal Waterway. The community has its own nature trail leading to the water, as well as a racket club with a swimming pool and tennis courts that the owners of this home can elect to join for $1,485 per year. The beaches of Siesta Key and downtown Sarasota are both about 15 minutes by car.
Size: 2,640 square feet
Price per square foot: $303
Indoors: The seller bought this property last year and updated the kitchen and bathrooms, among other things. A double-glass front door, large windows and pale surfaces contribute to an overall feeling of brightness, and all that transparency offers sustained reminders of the surrounding greenery. Lounging areas are in a living room and in a family room with a wood-burning fireplace and wet bar. Eating areas are in a sky-lighted niche off the kitchen and in a separate dining room. The kitchen includes a custom quartz-topped island, a geometric tiled backsplash and an induction cooktop.
In the master bedroom suite are two closets and a bathroom with double ceramic sinks floating on a vanity created from a vintage cabinet. The walk-in shower is lined in ceramic tile with the look and texture of bamboo. Two additional bedrooms have attached bathrooms. The fourth bedroom is currently used as an office.
Outdoor space: An L-shaped screened lanai is directly accessible from the living room, family room and master. The grounds are planted with oaks — including a large tree in back that is at least a half-century old — and orchids. Parking is in an attached two-car garage.
Taxes: : $4,939 a year (2018), plus a $1,481 annual homeowner’s fee
Contact: Tara Lamb or Judy Greene, Greene-Lamb Group, Michael Saunders & Company, 941-266-4873; michaelsaunders.com
For weekly email updates on residential real estate news, sign up here. Follow us on Twitter: @nytrealestate.
Sahred From Source link Real Estate
from WordPress http://bit.ly/2PWCdCb via IFTTT
0 notes
elderlycollection-blog · 8 years ago
Text
How to protect your assets from lawsuits
If you listed your financial fears, you might include a repeat of 2008’s market meltdown, losing your job and getting your identity stolen. But somewhere on the list, I suspect, would be another major worry: getting sued.
That risk can loom large if, say, you are wealthy, a doctor or have your own business. By the time you’re slapped with a lawsuit, it’s likely too late to protect yourself, so you need to act ahead of time. Here are some key weapons in your “asset protection” arsenal:
Retirement accounts
Got lots of money in individual retirement accounts, 401(k) plans and other tax-sheltered retirement plans? Good news: “Getting money into a 401(k) and IRA is a great way to get creditor protection,” says Pittsburgh accountant and attorney James Lange.
Creditors might come after your assets because you lose a lawsuit or you have unpaid debts. If those debts force you to file for bankruptcy, your IRA, 401(k) and other retirement accounts will most likely be protected.
But the protection isn’t absolute. For instance, retirement accounts remain vulnerable if you owe federal taxes or child support. In addition, the Supreme Court ruled this month that an inherited IRA isn’t protected in bankruptcy, unless you inherited the account from your spouse.
What if the problem isn’t bankruptcy, but rather you lose a lawsuit resulting, say, from somebody getting injured at your home? In that situation, employer-plan assets should be protected.
What about your IRA, including rollover IRA? You need to look at state law, advises tax attorney Adam Bergman of New York’s IRA Financial Group.
“If you have a judgment against you and you don’t file for bankruptcy, most states will still protect your IRA from the judgment,” says Mr. Bergman.
Real estate
Many states have homestead exemptions that protect your principal residence if you lose a lawsuit. The extent of that protection, however, varies. Florida and Texas are renowned for their robust homestead exemptions, while other states might protect only a portion of your home’s value.
Alternatively, you might gain some protection by titling your home using “tenancy by the entirety.” With this ownership arrangement, which is available to married couples in some states, an asset can’t be sold unless both spouses agree. This means the home might be protected if one spouse gets sued, because the other spouse could block the home’s sale. It wouldn’t help if both spouses were sued.
Umbrella liability insurance
Creditors can easily get at money in regular taxable accounts. What to do? You might buy umbrella liability insurance. This is typically bought from the insurer that provides you with auto and homeowners insurance, and it offers additional liability protection.
Pay careful attention to a policy’s exclusions. For instance, while an umbrella policy should protect you if you’re sued because of an incident at your home or while driving, it likely won’t help with liability arising from your business dealings or if you deliberately damage somebody else’s property.
Business structure
If you’re self-employed or run a small business, there’s a risk that business problems could threaten your personal assets. To fend off that risk, you might operate the business as an S corporation or limited-liability company. An LLC is the better bet, reckons Jeffrey Verdon, a lawyer in Newport Beach, Calif., because it’s harder for creditors to take your share of the business to satisfy a personal debt.
Asset-protection trusts
Lawyers often suggest establishing an asset-protection trust if you have significant assets or if you’re a doctor, real-estate developer or in another profession that tends to attract lawsuits.
These trusts are irrevocable, meaning you can’t take back the assets. Instead, distributions are at the discretion of a trustee, who could stop payouts if there were a legal judgment against you. Asset-protection trusts can be established both in the U.S. and overseas. Mr. Verdon favors overseas trusts, which have been more extensively tested in court.
He believes it’s worth considering a trust if you can fund it with at least $500,000. The price tag, however, is steep. A domestic trust might cost $10,000 to $20,000 to set up, while a foreign trust could cost $35,000 to $40,000, plus costs for administration and money management.
“It’s a lot less expensive than replacing the assets lost in a lawsuit,” Mr. Verdon notes. “If setting up the structure results in the case being settled for less than it otherwise would, then it’s worked, in our view.”
Need an estate and elder planning attorney?
Elville and Associates proudly serve clients in Central Maryland, the Washington Metro Area, and the Eastern Shore.
0 notes
cassandradodds · 8 years ago
Text
Florida Property Tax Exemption Amendment for First Responders
Florida Property Tax Exemption Amendment for First Responders
Every year, thousands of rescue workers are injured in the line of duty. They risk their lives to save others. They often get hurt in the process, sometimes with fatal consequences. But Florida introduced an amendment on the November 8, 2016 ballot where residents voted on whether the state would draft legislation that “would create a new property tax exemption for first responders who are permanently disabled as a result of an injury in the line of duty,” according to The Palm Beach Post.
First Responders’ Amendment
The Florida Tax Exemptions for Disabled First Responders Amendment is also known as Amendment 3. It was on the November 8, 2016 ballot in Florida as a legislatively referred constitutional amendment and was approved.
First responders include law enforcement officers, correctional officers, firefighters, emergency medical technicians, or paramedics. “In the line of duty” means arising out of and in the actual performance of duty required by employment as a first responder.
This amendment allows disabled first responders who may be eligible to receive a full or partial homestead property tax exemption. Florida had already provided a property tax exemption for surviving spouses of first responders who have died in the line of duty.
Attorneys at the national law firm Parker Waichman LLP are actively reviewing issues involving first responders, including those affected by the September 11, 2001 World Trade Center disaster. The firm offers free, no-obligation case evaluations. on behalf of individuals who are seeking legal information.
This amendment proposed providing a property tax break in addition to the $50,000 homestead exemption received by all residents who own a primary residence in Florida. The amendment will let the Legislature decide whether to grant a complete or partial property tax break to first responders who were totally and permanently disabled in the line of duty. The exemption will only apply to homesteaded property, according to The Palm Beach Post.
Palm Beach Property Appraiser Gary Nikolits said, “he did not know exactly how many Palm Beach County residents might qualify for the property tax break or what impact it might have on the county’s tax base.”
Other States with Tax Exemption for First Responders
Florida is not the only state that considered relief for first responders. Virginians had a similar ballot proposal. The proposed Constitutional Amendment proposed “providing a property tax exemption for primary residences of surviving families of any law enforcement officer, firefighter, search and rescue personnel or emergency medical services personnel killed in the line of duty, so long as the surviving spouse does not remarry. The state would not be responsible for managing the exemption, however.” The discretion to grant these exemptions would be given to local jurisdictions, according to Bloomberg BNA.
Other states and local jurisdictions have similar tax break programs. A tax credit for disabled workers and spouses of fallen law enforcement officers and rescue workers is offered in Montgomery and Baltimore Counties in Maryland.
The credit is “100 percent of the county real property tax on the dwelling of a surviving spouse (who has not remarried),” according to the Montgomery County Department of Finance. Certain counties in New York also offer an exemption of the assessed value for volunteer firefighters and ambulance workers’ primary residences.
FL Property Tax Exemption Amendment for First Responders
Connecticut’s version of the tax break is an “optional relief” for firefighters and emergency personnel. The Connecticut General Assembly’s property tax statutes grant municipalities the authority to give first responders property tax relief in two ways: either “an abatement of up to $1,000 in property taxes due for any fiscal year, or an exemption applicable to the assessed value of real or personal property up to $1 million divided by the mill rate, in effect at the time of assessment.”
Voters in Florida still had to consider that the state legislature had to write the bill and determine the amount of the property tax exemption for disabled first responders, with the additional question of how the revenue given up through the tax break will be covered. The new exemption will effectively shift the burden to the rest of the taxpayers to provide revenue for local government needs. This would be the price to pay for shifting the burden of daily emergencies to rescue workers and first responders, reports Bloomberg BNA.
Legal Advice and Information Concerning First Responders
Parker Waichman LLP has had years of experience representing first responders. If you or anyone you know is seeking help and legal information, we urge you to contact us at 1-800-YOURLAWYER (1-800-968-7529).
from Parker Waichman http://www.yourlawyer.com/blog/florida-property-tax-exemption-amendment-for-first-responders/
from WordPress https://parkerwaichman.wordpress.com/2017/02/27/florida-property-tax-exemption-amendment-for-first-responders/
0 notes
parkerwaichmanlaw · 8 years ago
Text
Florida Property Tax Exemption Amendment for First Responders
Florida Property Tax Exemption Amendment for First Responders
Every year, thousands of rescue workers are injured in the line of duty. They risk their lives to save others. They often get hurt in the process, sometimes with fatal consequences. But Florida introduced an amendment on the November 8, 2016 ballot where residents voted on whether the state would draft legislation that “would create a new property tax exemption for first responders who are permanently disabled as a result of an injury in the line of duty,” according to The Palm Beach Post.
First Responders’ Amendment
The Florida Tax Exemptions for Disabled First Responders Amendment is also known as Amendment 3. It was on the November 8, 2016 ballot in Florida as a legislatively referred constitutional amendment and was approved.
First responders include law enforcement officers, correctional officers, firefighters, emergency medical technicians, or paramedics. “In the line of duty” means arising out of and in the actual performance of duty required by employment as a first responder.
This amendment allows disabled first responders who may be eligible to receive a full or partial homestead property tax exemption. Florida had already provided a property tax exemption for surviving spouses of first responders who have died in the line of duty.
Attorneys at the national law firm Parker Waichman LLP are actively reviewing issues involving first responders, including those affected by the September 11, 2001 World Trade Center disaster. The firm offers free, no-obligation case evaluations. on behalf of individuals who are seeking legal information.
This amendment proposed providing a property tax break in addition to the $50,000 homestead exemption received by all residents who own a primary residence in Florida. The amendment will let the Legislature decide whether to grant a complete or partial property tax break to first responders who were totally and permanently disabled in the line of duty. The exemption will only apply to homesteaded property, according to The Palm Beach Post.
Palm Beach Property Appraiser Gary Nikolits said, “he did not know exactly how many Palm Beach County residents might qualify for the property tax break or what impact it might have on the county’s tax base.”
Other States with Tax Exemption for First Responders
Florida is not the only state that considered relief for first responders. Virginians had a similar ballot proposal. The proposed Constitutional Amendment proposed “providing a property tax exemption for primary residences of surviving families of any law enforcement officer, firefighter, search and rescue personnel or emergency medical services personnel killed in the line of duty, so long as the surviving spouse does not remarry. The state would not be responsible for managing the exemption, however.” The discretion to grant these exemptions would be given to local jurisdictions, according to Bloomberg BNA.
Other states and local jurisdictions have similar tax break programs. A tax credit for disabled workers and spouses of fallen law enforcement officers and rescue workers is offered in Montgomery and Baltimore Counties in Maryland.
The credit is “100 percent of the county real property tax on the dwelling of a surviving spouse (who has not remarried),” according to the Montgomery County Department of Finance. Certain counties in New York also offer an exemption of the assessed value for volunteer firefighters and ambulance workers’ primary residences.
FL Property Tax Exemption Amendment for First Responders
Connecticut’s version of the tax break is an “optional relief” for firefighters and emergency personnel. The Connecticut General Assembly’s property tax statutes grant municipalities the authority to give first responders property tax relief in two ways: either “an abatement of up to $1,000 in property taxes due for any fiscal year, or an exemption applicable to the assessed value of real or personal property up to $1 million divided by the mill rate, in effect at the time of assessment.”
Voters in Florida still had to consider that the state legislature had to write the bill and determine the amount of the property tax exemption for disabled first responders, with the additional question of how the revenue given up through the tax break will be covered. The new exemption will effectively shift the burden to the rest of the taxpayers to provide revenue for local government needs. This would be the price to pay for shifting the burden of daily emergencies to rescue workers and first responders, reports Bloomberg BNA.
Legal Advice and Information Concerning First Responders
Parker Waichman LLP has had years of experience representing first responders. If you or anyone you know is seeking help and legal information, we urge you to contact us at 1-800-YOURLAWYER (1-800-968-7529).
from Parker Waichman http://www.yourlawyer.com/blog/florida-property-tax-exemption-amendment-for-first-responders/
0 notes
sarikurlandbankruptcylaw · 8 months ago
Text
0 notes