What the Heck is a Homestead Exemption?

I was driving down the road the other day with a friend of mine when I had one of my sudden, spastic “Oh crap, I forgot to…” moments.  It’s usually a quasi-voluntary reaction that often comes without explanation to those around.  This generally contributes to the hypothesis that I’m crazy.  Anyway, enough about my eccentricities, that’s a blog entry for another day.

My friend asked me what my little knee jerk was all about.  When I explained that I had forgotten to go to the Nichols Hills Town Hall on the 4th to file my homestead exemption he seemed confused.  My friend has owned his home for a few years and had never heard of the homestead exemption.  If he didn’t know what it means, I wonder how many others don’t know.  So, here’s an explanation in my own words:

A homestead exemption is basically a coupon for $1,000 off the assessed value of your home.  This can save you around $100 off your annual tax bill depending on the valuation of your home.  A hundred bucks may not seem like much, but hey, it’s dinner for you and 3 friends.  If you own more than one property, homestead can only be filed on your primary residence.  You only have to file once, unless you change your deed, or change your primary residence.  So, if you purchased a house in 2009 you have until March 15th to file for a discount on this year’s tax bill.  If it’s received after that date, it will kick in next year.  Either way, it’s not a bad return for 10 minutes of filling out a form.  There are other discounts available for those with low incomes as well.  Check with the Assessor’s Page for more information.

Happy Homeowning!

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Comments

  1. Great blog. I am from California and am doing online research before setting up my on local Morgan Hill, CA real estate blog. I liked the photos and the search home features which make sense, but would have never included MLS search on my blog. Thanks for letting me check it out!!