BUYING,
SELLING & RELOCATING
Save Our Homes / Amendment
10
The Save Our Homes Amendment
of the State's Constitution was approved by Florida voters
in 1992 and put into effect in 1995. This amendment places
a limitation of 3% on any annual assessment increases on
Homestead Properties in Florida.
Property granted Homestead
shall be assessed at full market value (just value) as of
January 1 of the year in which the property receives the
exemption. In subsequent years, the assessed value of homestead
exempt property will not increase more than 3% or the percentage
change in the Consumer Price Index, whichever is less. There
are exceptions to that limitation, including new construction
or additions which are found to have escaped taxation in
the past. Also, the limitation does not apply the year following
a change of ownership.
FREQUENTLY ASKED QUESTIONS
What
is the Save Our Homes amendment?
Section
193.155(1) of the Florida Statutes was enacted to implement
an amendment to the state constitution to limit annual increases
in property value assessments on real property qualifying
for and receiving homestead exemption.
How
does the amendment limitation apply?
Real
property shall be assessed at full market value (just value)
as of January 1 of the year in which the property first
receives the homestead exemption.
The following year the
property is reassessed and any changes from the prior year's
value is not to exceed the lesser of 3% of that prior year
assessed value or the Consumer Price Index (CPI) change,
with the exception of changes, additions or improvements.
How
is my property affected?
The
year following the granting of homestead exemption the property
is subject to the limitation.
What
about any changes, additions or improvements to the homestead
property?
New
construction or additions shall be assessed at full market
value as of the first January 1 after the changes are substantially
completed. In these circumstances, it is possible that the
assessed value may exceed the amendment limitations. However;
after the first year that the changes are assessed at full
market value, they also are subject to the amendment limitations.
What
properties are not subject to the limitation?
Residences
without homestead, non-residential property, vacant land,
tangible personal property, commercial property, and agricultural
property, are not eligible for the amendment limitation.
Why
would my assessment increase when my market value stayed
the same?
This
is probably due to the "recapture" rule. In 1995,
the Department of Revenue adopted a rule approved by the
Governor and Cabinet directing property appraisers to raise
the assessed value of a qualifying homestead property by
the maximum of 3% or the Consumer Price Index, whichever
is less, on all properties assessed at less than full market
value.
What
happens if a property is sold or conveyed to a new owner?
Once
the property has been conveyed to the new owner, it is raised
to full market value January 1 of the following year. The
new owner must apply for and receive homestead exemption.
Even if the property received
a homestead exemption under the previous owner, the limitation,
just like the exemption, expires January 1 of the year following
a change of ownership.
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