"Save Our Homes" (Qualified Homestead Properties Only)
An amendment to the Florida Constitution (voted on and passed in November 1992,
by approximately 54% of the voters in the State of Florida) was implemented in 1994
limiting the increases of the assessed value of a Qualifying Homestead Property
to 3%, or the consumer price index (CPI), whichever is less, from one year to the
next. This cap only applies to real property qualifying and receiving a homestead
exemption. This cap does not apply to new construction or previously non-assessed
improvements made to the property the first year that it is added to the tax roll.
The cap goes into effect the year following the granting of the homestead exemption.
When a homesteaded property is sold or conveyed to a new owner, the assessed value
then becomes the full market value. If the new owner applies and receives a homestead
exemption then the process starts all over.
FAQ on Save Our Homes
Portability of Save Our Homes Exempt Value or Transfer of Homestead Assessment
Difference
Over time, in a normal upward market, the Market Value will outpace the capped Assessed
Value creating a difference in the values. The difference in the values is the Save
Our Homes (SOH) exempt value. It is value you have in your property that you are
not paying taxes on. The purpose of SOH is to prevent long-time residents from being
forced from their homes due to high property taxes. One unforeseen consequence of
SOH is that many homestead property owners felt trapped in their homes. If they
moved, they lost their SOH protection and faced huge increases in property taxes
on their new property. Portability, which became effective with Amendment One in
2008, allows property owners to transfer all or a significant portion of their property
tax savings to a new property within three years.
Here's how portability works. If the market value of your previously homesteaded
property is greater than its assessed value, Amendment One permits you to transfer
up to $500,000 of your actual SOH Exempt Value to your new property.
When moving to a less expensive property the assessed value of the new property
is the product of the ratio between the current market value of your new property
and the previous value of your prior property, times the assessed value of your
current property.
FAQ on Portability
Examples of Portability Calculations