Monday Market Update - Homestead Exemption

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Happy New Year!

If you have not already done so, now is a good time to file for homestead exemption.  You only have to file once, but if you have never filed, or you purchased a your home in 2018, be aware of the deadlines to file (see links below).  Homestead exemption only applies to primary residences.

What exactly is Homestead Exemption?

In Mississippi, homeowners can take advantage of what's called a homestead exemption. Basically, a homestead exemption allows a homeowner to protect the value of her principal residence from creditors and property taxes. A homestead exemption also protects a surviving spouse when the other homeowner spouse dies. State homestead exemptions often have four features, including the well-known property-tax exemption on a portion of a home's assessed value.

Property Taxes

A homeowner's understanding when it comes to homesteading her property most often has to do with the property-tax exemption. Generally, this advantage of homesteading pertains to shielding a portion of a home's value from property taxes. Often, a typical homesteading advantage is that it'll exempt the first $25,000 to $75,000 of a home's assessed value from all property taxes. With a $50,000 homesteading exemption, you'll only owe property taxes on the home's remaining assessed value.

Forced Sale Immunity

With a homestead exemption, your home is shielded from a forced sale to satisfy creditors. For example, the lender financing your automobile can't force the sale of your home if you default on your auto loan. Before homestead exemptions, creditors could and often did try to seize a homeowner's property to satisfy all kinds of debts. Homestead exemptions, however, don't normally shield your home from forced sale in mortgage foreclosures or from defaulted property taxes.

Homestead Requirements
In order to declare a homestead on your home, it must be your principal residence. In Mississippi, homestead exemptions apply only to real property. You won't be able to declare your house boat or motor home a homestead under certain state's homesteading laws. Your homestead exemption and its advantages last until you effectively abandon the homestead, too. Commonly, you abandon an old homestead when you declare another home your new homestead.

Links for requirements and deadlines to file for Homestead Exemption:

From Kati Viola

Jackson County
https://www.co.jackson.ms.us/427/Homestead-Exemption-- 

Harrison Countyhttp://co.harrison.ms.us/downloads/Departmental%20Downloads/tax%20assessor/Pre-Application%20Form%20For%20Filing%20Homestead%20Exemption.pdf