How does the Passage of Amendment 1 affect me?
The recent passage of Amendment One provides the following three benefits to the 2008 Tax Year:
1. Creates an automatic additional homestead exemption worth $25,000, applied to the homestead property’s value over $50,000.
NOTE: All existing exemptions already included on your property, i.e., seniors (if income limitations have been met), widows, veterans, etc. will remain the same with no changes.
This exemption does not apply to school tax levies which represent approximately one half of your property taxes.
2. Allows portability of accumulated Save Our Homes (SOH) savings benefits for homeowners who move from one homestead to another with the following guidelines:
- Homeowners may transfer their SOH benefit from their most recent homestead to a new homestead anywhere in Florida by the second January 1st following the sale of their former homestead. (For example: Those who sold their homes in 2007 can transfer their SOH savings benefit to a new homestead if they establish the new homestead by January 1, 2009.)
- If "upsizing" to a home of equal or greater just value, the homestead owner can transfer 100% of the SOH savings benefit to the new homestead, up to $500,000 transferred benefit.
- If "downsizing" to a home with a lower just value, the homestead owner can transfer a SOH savings benefit that protects the same percentage of values as it did the former homestead, up to a $500,000 benefit.
Click here for our Portability FAQ
Additional $25,000 Homestead Exemption
10% Cap for Non-Homestead Properties
$25,000 TPP Exemption
- What is portability?
The ability to transfer the savings benefit of the homestead property assessment limitation (defined in FS 193.155),
known as Save Our Homes (SOH) and described as the dollar value difference between market value and assessed value, or the percentage thereof from one existing homestead to another new homestead property.
- How and when do I apply for portability?
You apply for portability when you are applying for homestead exemption using Form DR-501T (Transfer of Homestead Assessment Difference). This application is in addition to the homestead exemption application.
If you have already applied for the homestead exemption, you can download the application from our website, or request a copy from our office, and submit the completed application to the Property Appraiser.
If porting your savings from another county: upon submission, the form will be sent to the Property Appraiser of your previous homestead for verification. Your previous Property Appraiser will issue a Certificate of Portability (DR-501R) and return the form to your new Property Appraiser for calculation of your portability benefit
- What is the formula used to determine the amount available for portability?
If you are upsizing (buying home with higher just market value than previous home) please refer to the following example:
• Previous Home Valued @ $400,000 and Assessed @ $200,000 (SOH Value) $400,000 - $200,000 = $200,000 (Portable Amount)
• New Home Valued @ $500,000 - $200,000 (Portable Amount) = $300,000 (New Assessed Value for New Home)
If you are downsizing (buying home with lower just market value than previous home) please refer to the following example:
• Existing Home Valued @ $400,000 and Assessed @ $200,000 (SOH Value); $200,000 divided by $400,000 = .50% (% eligible to port to new property)
• New Home Valued @ $300,000 X .50% (% eligible to port) = $150,000 (Assessed Value of New Homestead)
- What are the effective dates of portability, the new additional homestead exemption and $25,000 Tangible Personal Property exemption?
The 2008 tax year - beginning January 1, 2008 - will be the first year taxpayers are eligible to apply for the new changes listed above.
- If I sold my property in 2006 can I qualify for portability?
Unfortunately not, the law only allows portability for any property with a homestead in 2007 moving forward - and allows up to 2 years to use the portability beginning with tax year 2007.
- If I owned property with another owner and they still live in my previous home can I apply for portability?
The law requires the previous exemption be forfeited before you can port any portion of the assessment cap benefit. Meaning, the remaining owner may not receive the full benefit and must re-apply. The port would be a portion of the savings dependent on how many owners were on the deed.
- Do I have to purchase a new property to be eligible for the portability benefit?
No, if you already own another property (2nd home, beach house, etc.) and establish your homestead at that address with required documentation for the 2008 tax year - you can remove the homestead from the old property and apply for the portability benefit on the newly established homestead.
- Can I also apply for additional exemptions such as widows/widowers, disability or seniors exemption if I use portability?
Yes, portability refers to adjusting the assessed value of the new homestead property; you may still apply for any additional exemptions that you may be eligible.
- What is the maximum SOH savings benefit I can port to my new property?
The maximum amount you can port is $500,000.
ADDITIONAL $25,000 HOMESTEAD EXEMPTION
- Will I save as much on the additional $25,000 homestead exemption as I did on my existing $25,000 homestead exemption?
No, due to the school tax levy not being part of this additional exemption you will not; the additional exemption is calculated using the millage rates minus the school tax levy which makes up a large portion of the total millage or taxes that you pay.
- How is this additional exemption calculated?
If your property is assessed at $50,000 or less your homestead exemption will remain the same amount as your current homestead exemption; however, properties assessed from $50,001 thru $74,999 will receive an increase proportionately up to $24,999 and any property assessed over $75,000 will receive the full additional $25,000 homestead.
- Must I file another application to qualify for the additional $25,000 homestead exemption?
No, the additional $25,000 homestead exemption is automatic and will be calculated based on your assessment if you already have a homestead exemption.
- How does this calculation affect my other additional exemptions such as widow/widowers, disability, or senior exemption?
It will not affect your other exemptions in any way; however regarding calculation, the additional exemption will not be applied to the school tax levy portion of the millage rate.
10% CAP FOR NON-HOMESTEAD PROPERTIES
- When will the 10% cap for non-homestead properties become effective?
The 10 % Cap on non-homestead assessments will not become effective until the 2009 tax roll, the first date the property owner will be eligible to apply will be January 1, 2009.
- How to do I apply for the 10% cap for non-homestead assessment on my properties?
At this point the law states that applications must be made with the Property Appraiser's Office by March 1, 2009. Legislation may be filed this year to make the cap automatic on non-homestead properties. This information will be listed on our website and on the application if the legislation is passed.
- May I apply for this exemption on my homestead property?
No, this exemption is only available for non-homestead properties.
- What does non-homestead property mean?
At this time the Property Appraiser is awaiting clarification from the Florida Department of Revenue, however it is our current understanding that it will include all properties not receiving a homestead exemption such as vacant land, commercial properties and rental properties.
- Will the 10% cap reduce my taxes after I apply?
No, the 10% cap will cap the assessment from increasing more than 10% the year following application for the exemption.
- Does the 10% cap apply to all taxing authority millage rates?
The 10% cap will apply to all millage rates except for school tax levies.
$25,000 TPP EXEMPTION
- When must I file my return to receive the $25,000 Tangible Personal Property exemption?
The return must be filed by April 1st of the tax year in order to receive the exemption (or within the applicable application deadline extension period).
- Since my Tangible Personal Property value was less than $25,000 in 2007, do I have to continue to file a Tangible Personal Property return?
Yes, your 2008 Tangible Personal Property return serves as an application and must be filed in order to qualify for this new exemption.
- What if I don't file a return?
Failure to file a return constitutes a failure to apply for the exemption.
- Will there be changes on the most recent Tangible Personal Property return?
There will be no changes on the return mailed in January 2008; and no separate application is required.
- If I have multiple locations for my business, am I required to file separately?
Yes, a return must be filed for each location within the county where the owner transacts business.
Freestanding property placed at multiple sites, other than where the owner transacts business, must have a single return filed and will receive one $25,000 exemption (examples: vending and amusement machines, LP/propane tanks, utility and cable company property, billboards, and leased equipment.)
- Does this exemption apply to mobile homes that are assessed as Tangible Personal Property?
This new exemption does not apply to mobile homes assessed as Tangible Personal Property.
- Will I be required in future years to file?
If in subsequent years the taxable value on the Tangible Personal Property exceeds the $25,000 exemption, then the property owner would be required to file a return.
3. Creates a new Tangible Personal Property Exemption of $25,000.
- Your 2008 Tangible Return serves as an application and must be filed in order to qualify for this new exemption.
In 2009 the Amendment provides an assessment growth limitation of 10% for all non-homestead real properties (such as investors, commercial properties, second home owners, etc.). The Assessment growth limitation would “cap” the increase at 10%.
- This assessment limitation does not apply to school tax levies.
- This assessment limitation will expire in 10 years. At that time, voters will decide whether to reauthorize it.
- Residential properties of nine units or less will surrender accumulated protections at change of ownership or control, as defined by general law.
- For all other properties (i.e., residential properties of ten or more units and business properties), the Legislature must define by general law how the property will surrender protections when there is a "qualifying improvement" to the property. The Legislature may define by general law how the property will surrender accumulated protections at a change of ownership or control.