FREQUENTLY ASKED QUESTIONS FOR THE WEBSITE

GENERAL QUESTIONS

Q: My assessed value went up more than 3%. (added garage last year)

A: Any additions to the property like adding a garage or pool, etc., are added to the assessed value after the Save Our Homes (SOH) cap is applied since the cap can only apply to the previous year’s tax roll. The new addition’s value will fall under the cap for the tax roll the following year.

Q: I own a duplex and live on one side. Why did my assessed value go up more than 3%?

A: Duplex properties where the owner lives on one side and has a homestead exemption, split their assessment in accordance with the percentage of the property that is occupied by the owner, and then the SOH cap is applied only to the part that is considered the homestead. The other part of the property assessment which covers A: the area not occupied by the owner is not under the cap.

Q: Who determines the amount of taxes I pay?

A: While the Property Appraiser determines the value of the property for tax purposes, the local taxing authorities (school board, commissioners, etc.) decide how much money is required to provide services and establish their budgets. Once this is determined each taxing authority figures out their millage rate which in turn determines your portion of taxes to be paid for these services. The millage rate is then applied to the taxable value determined by the Property Appraiser to calculate your property taxes.

Q: My neighbor and I have identical homes, so why are my taxes so much higher?

A: Most likely your neighbor filed and qualified for the Homestead Exemption at an earlier date than you did. Consequently, they started at a lower assessed value when their 3% cap was initially applied. The Save Our Homes (SOH) cap limits assessed value of Homesteaded properties to an increase of no more than 3% per year regardless of how high your market value increases. Over the long term the gap between your market and assessed value increases allowing your SOH exempt value to grow. SOH exempt value is value you do not pay taxes on. If you purchased your home more recently or filed for Homestead at a later date than your neighbor you will see a difference in assessed values and ultimately, tax amounts.

Q: Does the 3% cap limit property taxes?

A: No, it is a cap on the assessment of a parcel, not on the taxes paid. A property’s assessment could stay the same or go down but property taxes could go up any given year because of millage increases levied by your local taxing authorities.

Q: How can the market value of my house decrease yet the assessed value increase?

A: Starting the second year you qualify for Homestead you receive a 3% cap on your assessed value. Over time, as your market value increases at a faster rate then your capped assessed value it creates a gap between the two. This gap is called Save Our Homes exempt value. If your market value falls but there is still a gap between it and your assessed value than you will still see an increase in your assessed value of up to 3%. Please note, however, that your assessed value can never be higher than your market value so if your market value has fallen down to or below your assessed value, then your assessed value will decrease as well.

Q: I just bought my home in Feb. 2008 for $200,000, and my 2008 proposed notice has my market value at $315,000. Why?

A: By law, the assessment date of all real and tangible personal property is January 1st of each year. The 2008 market value is based upon sales of comparable properties in 2007. Sales that have occurred during 2008 will impact assessments on the 2009 tax roll.

Q: How is the Save Our Homes Exempt Value calculated?

A: The amount of the Save Our Homes (SOH) exempt value is the difference between your Market (Just) Value and your Assessed Value. If you have lived in your home for a while, your assessed value will likely be lower than your market value. The difference between the market value and your assessed value is called SOH exempt value. The amount of the SOH exempt value can vary from year to year depending on the value of your property.

ADDITIONAL $25,000 HOMESTEAD EXEMPTION

Q: Do I have to apply for this additional homestead exemption?

A: No. The additional exemption will be applied automatically to any property that currently is receiving a homestead exemption.

Q: How much will I save on the additional $25,000 homestead?

A: This exemption will save most homeowners about $140-$150 a year in taxes.

Q: Can I also apply for other exemptions such as widow/widower, disability or senior exemption and qualify for the additional homestead exemption?

A: Yes. The only difference is that the additional homestead exemption will not be applied to the school taxing authority portion of the property taxes.

Q: The assessed value of my home according to the property appraiser’s office is $55,000, why do I only have $30,000 of homestead exemption if the exemption was increased to $50,000?

A: The original homestead exemption applies to the first $25,000 of value, and the additional homestead exemption is applied to the value between $50,000 and $75,000. Since the assessed value is $55,000, only $5,000 of the additional $25,000 would be exempt. To benefit from the full additional exemption, the assessed value has to be over $75,000.

PORTABILITY

Q: What is portability?

A: Since 1994, property owners who have Homestead Exemption have had increases in their annual assessments capped at a maximum of 3% or the Consumer Price Index, whichever is lower. This Assessment Limitation, known as ‘Save Our Homes Exempt Value’ has resulted in significant tax savings to homeowners. The value of the cap is the difference between the market value of the property and the assessment limitation resulting in ‘Save Our Homes.’ Under the Portability provision of the new law, homeowners can now transfer (port) up to $500,000 of the accumulated savings to their next homesteaded property.  

Q: When does ‘Portability’ go into effect?

A: Portability went into effect for 2008.

Q: If I sold my previous home in 2006, can I qualify for portability?

A: No, in order to qualify for portability, you must have sold or abandoned your previously homesteaded residence in 2007 or later.

Q: Will I be able to transfer my entire Save Our Homes (SOH) exempt value from my previous home to my new home?

A: Amendment 1 allows for the transfer of up to $500,000 of SOH exempt value. If the new residence has a higher market value than the previous residence, as determined by the property appraiser, then all of the SOH exempt value up to $500,000 may be transferred. If the new residence has a lower market value than the previous residence, a percentage of your SOH may be transferred.

Q: Do I have to sell my home before I can qualify for portability?

A: No, you only need to abandon your existing homestead, meaning you may still own the property but no longer receive a homestead exemption on the property for the year you are attempting to get portability.

Q: When do I apply for portability?

A: You apply for portability when you apply for the homestead exemption. There is a separate application for portability in addition to the homestead application.  

Q: How do I apply for portability?

A: Fill out the DR-501T “Transfer of Homestead Assessment Difference” application when you file an application for your new homestead exemption.

Q: What information is required when applying for portability?

A: Required information on this form includes the date that the previous homestead was sold or no longer used as a homestead, the address and parcel identification number of the previous homestead, a list of all other owners of the previous homestead and if any still live at the previous homestead.

Q: Can I also apply for additional exemptions such as widow/widowers, disability or senior exemption if I have portability?

A: Yes. You still can apply and receive any additional exemption for which you are qualified.

Q: How is the Save Our Homes exempt value calculated?

A: The amount of the SOH exempt value is the difference between your Market (Just) Value and your Assessed Value. If you have lived in your home for a while, your assessed value will likely be lower than your market value. The amount of the SOH exempt value can vary from year to year depending on the value of your property.

Q: What information will the property appraiser in the county where the new homestead is located rely on to calculate and grant portability?

A: If the previous and new homesteads are in the same county, the property appraiser will have all required information. If the previous and new homesteads are in differing counties, the property appraiser from the new homesteaded county will apply to the previous homesteaded county for the information required to calculate and grant portability.

Q: How do I know how much SOH Exempt Value I have to transfer or carry to my new homestead?

A: The amount of the SOH Exempt Value you can carry to your new homestead depends on whether you buy a higher valued property or buy a lower valued property. The exact amount will be determined after you file for homestead on your new residence.

Q: If I had homestead on my previous property as of January 1, 2007 and sold the homestead in 2007, how long do I have to qualify for portability?

A: The amendment states that the SOH exempt value must be transferred within two tax years. In this instance, you must file and qualify for a 2009 homestead exemption (own and occupy as of January 1, 2009) in order to transfer all or part of the 2007 SOH exempt value.

Q: I sold my home last year and just found out that my SOH Exempt Value was less than I thought it would be. Can I appeal last year’s value to increase my SOH Exempt Value amount?

A: No, Florida Statute 194.011(6)(b) specifically precludes a taxpayer from petitioning to have the Market, Assessed, or Taxable value of the previous homestead changed.

Q: Do I have to purchase a new property to get the Portability benefit?

A: No. You can transfer the SOH exempt value to another property you purchased in a previous year.

Q: I have filed and qualified for a 2009 homestead exemption and see that the 2008 SOH exempt value from my previous homestead is less than the 2007 SOH exempt value. Do I get to choose which SOH amount to port to the new homestead? And why is it less in 2008?

A: No, the most recent SOH amount will be transferred. The SOH amount is the difference between the market value and the assessed value. So if the market value decreased and the assessed value increased 3% through the recapture provision in the Florida Constitution, the difference between the two values will be reduced.

Q: My fiancé and I are purchasing a home together and we both have separate homesteads now. Can we use Portability to bring both of our SOH exempt value amounts to our new home?

A: The new legislation allows you to bring the higher of the two SOH exempt value amounts, but not both. You should both file a portability application and our office will determine which amount is higher.

Q: Is there any difference in applying portability provisions for homestead (either current or previous) when the property is held as “joint tenants with right of survivorship,” “tenants in entirety” (husband & wife) or “tenants in common?”

A: Yes. In situations where the title of the previous homestead contains specific ownership shares (tenants in common), each owner’s share of the SOH exempt value is proportional to his/her ownership share in the property. When the title does not contain specific ownership shares (joint tenants or tenants in entirety), the SOH exempt value is divided equally by the number of owners who received the homestead exemption on the property. The only exception is when all the owners of the previous homestead jointly establish a new homestead with no additional owners, in which case the entire SOH exempt value, up to a maximum of $500,000, may be transferred, subject to a higher or lower market value of the new property.

Q: I am newly married and my spouse is moving into my existing homesteaded property. He has a larger SOH exempt value amount on his former residence than I do on my present one. Can he bring his SOH exempt value to my homestead?

A: If he is on title on your parcel (part-owner) and he applies for and receives homestead, he can bring his SOH exempt value amount with him, but you would have to abandon your homestead and re-apply. This would essentially replace your existing SOH exempt value with his higher SOH exempt value amount.

Q: My wife and I were both owners of our former residence that we just sold. We bought a new home, but for estate planning purposes, we only put the new house in her name. Does Portability allow us to transfer 100% of the SOH exempt value from our former residence to the new residence?

A: No, since only your wife is on the deed for the new home, you can only transfer 50% of the SOH exempt value from the former residence. Since all owners of the previous homestead are different than all the owners of the new homestead, this is not a “transfer without splitting or joining.” Therefore, only the owner of the new homestead is eligible to transfer his/her share of the SOH exempt value from the previous homestead, which is 50 percent, subject also to the provisions to higher or lower market value on the new homestead.

Q: The previous home was in the wife’s name and the new residence is owned by both husband and wife, do they qualify for portability?

A: Yes, the amendment requires that the owner of the previous homesteaded property also own the new homesteaded property.

Q: I owned a property with my ex-husband. I was awarded the house in the divorce. I sold it and purchased a new home that I will homestead. My ex-husband also purchased a new home that he will homestead. Since I was awarded the house in the divorce, is my ex-husband entitled to any of the former SOH exempt value? And, how will the portability amount be split or divided between our new homesteads?

A: The new legislation requires that the portability amount be divided equally among the owners of the prior homesteaded property. Your husband would be entitled to half of the SOH exempt value from the former residence. Timing could be an issue – contact our office for clarification.

Q: Is there any provision of law that would allow the transfer of a homestead assessment limitation difference when one or more owners remain in the previous homestead?

A: Yes. Florida Statute allows an owner of a homestead to abandon the homestead and reestablish the property as a new homestead even though it remains his or her primary residence by notifying the property appraiser of the county where the homestead is located. This provision allows owners who no longer live at the previous homestead to transfer their share of SOH exempt value and for the owners who remain in the previous homestead to transfer back in their share of the SOH exempt value as the next January 1, if the owner still residing at the previous homestead voluntarily abandons the homestead. If this occurs, the previous homestead must be reassessed at full market value on January 1 and the owner remaining must reapply for homestead exemption and apply to for their share of the SOH exempt value to be reapplied to the homestead.

Q: If two people abandon a jointly owned homestead with an SOH exempt value greater than $500,000 and move to two separate homesteads, can they transfer their proportionate share of the previous SOH exempt value as long as their individual share in not greater than $500,000?

A: No. The total reduction in market value for all new homesteads established by the owners of a single previous homestead may not exceed $500,000. Therefore, the maximum SOH exempt value that could be transferred by two previous joint owners of a single homestead establishing different homesteads is $250,000 each.

Q: If the previous homestead is qualified for both a homestead exemption and an agricultural classified use assessment, how is the amount of transfer to be calculated?

A: The amount eligible for transfer is equal to the reduction in value due to the SOH exempt value. Therefore, the difference eligible for transfer is equal to the difference between market and assessed value on the homestead portion of the property.

10% CAP FOR NON-HOMESTEADED PROPERTIES

Q: When will this become effective?

A: This will be effective for your 2009 TRIM Notice and property tax bill.

Q: How do I apply for the 10% cap?

A: It is automatic. You do not need to file an application to receive the 10% cap.

Q: Can I get this exemption on my homesteaded property?

A: No. This exemption is for all “Non-homesteaded” properties.

Q: What does “Non-homesteaded property” mean?

A: The Collier County Property Appraiser is awaiting a final definition for the Florida Department of Revenue. However, the Department understands that the targeted beneficiaries are those properties that are not receiving a homestead exemption, such as vacant land, commercial properties and rental properties.

Q: Will the 10% cap reduce my taxes?

A: Your 2009 assessed value will not increase more then 10% from your 2008 assessed value.

Q: Does the 10% cap apply to the whole property?

A: Yes.

$25K TANGIBLE PERSONAL PROPERTY (TPP) EXEMPTION

Q: What is tangible personal property?

A: This is an assessment for the equipment, furniture and fixtures used by all business and rental properties. Assessment of TPP at rental properties may include items such as stoves, refrigerators, etc.

Q: How do I apply for this exemption?

A: The Tangible Personal Property Return shall be considered an application for the exemption and will be applied to the first $25,000 in value for the tangible personal property.

Q: What tax rate is used for this exemption?

A: This exemption applies to all tax rates.

Q: When does this exemption become effective?

A: This exemption is effective for the 2008 tax year and will be reflected in your 2008 TRIM notice and tax bill.

Q: When must I file my Tangible Personal Property Return?

A: All returns must be filed by April 1 unless an extension has been granted. All requests for a Filing Extension must be received (or postmarked by the USPS) by April 1.

Q: Who can I contact with additional questions?

A: Please call 239-252-8145 for Tangible Personal Property assistance.