Frequently Asked Questions |
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.
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 the area not occupied by the owner is not under the cap.
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.
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.
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.
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 than 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 then 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.
A: By law, the assessment date of all real and tangible personal property is January 1st of each year. The 2023 market value is based upon sales of comparable properties in 2022. Sales that have occurred during 2023 will impact assessments on the 2024 tax roll.
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.
A: No. The additional exemption will be applied automatically to any property that currently is receiving a homestead exemption.
A: This exemption will save most homeowners about $140-$150 a year in taxes.
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.
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.
A: Portability went into effect for the 2008 tax year.
A: Portability 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.
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.
A: You apply for portability when you apply for the homestead exemption on your new property. There is a separate application for portability in addition to the homestead application.
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.
A: Yes. You still can apply and receive any additional exemption for which you are qualified.
A: The amount of the SOH exempt value is the difference between your market value and your assessed value. The amount of the SOH exempt value can vary from year to year depending on the yearly market value of your property.
A: Certified market and assessed values of the new and previous homesteaded properties are used to determine portability amounts.
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.
A: The amendment states that the SOH exempt value must be transferred within three tax years. In this instance, you must file and qualify for a 2024 or 2025 homestead exemption (own and occupy as of January 1, 2024 or 2025) in order to transfer all or part of the 2023 SOH exempt value.
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.
A: No. You can transfer the SOH exempt value to another property you purchased in a previous year.
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.
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.
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.
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.
A: Yes, the amendment requires that the owner of the previous homesteaded property also own the new homesteaded property.
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.
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.
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.
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.