Save Our Homes Exemption Answers

I received a question from someone asking how they could determine if they have the Save Our Homes limitation on their homestead property. Since the answer varies from homeowner to homeowner, plus it was a very good question, I thought I would clear it up a little.

If you own a homestead property in Florida, and have had it since 2004 or earlier, then the answer is yes. If you bought and homesteaded a home in 2005, then last year (2006) you did not qualify for the Save Our Homes limitation, this tax year (2007, to be paid in early 2008) you do.

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. However, the limitation does not apply the year following a change of ownership.

Residences without homestead, non-residential property, vacant land, tangible personal property, commercial property, and agricultural property, are not eligible for the amendment limitation.

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. The year following the granting of homestead exemption the property is subject to the limitation.

However, if the new "Super Exemption" property tax plan passes in the January 29, 2008 statewide vote, everything changes. In many cases, you will pay less in property taxes...how much depends on whether or not the County Board of Commissioners changes the millage rate as well as if the County Property Appraiser re-assesses property values.

Example 1:
If the bill passes and millage rates and values are unchanged, your tax bill should go down, significantly.

Example 2:
If the bill passes, millage rates don't change, but assessed values are adjusted to realistic market values, your tax bill is still likely to go down from what you are paying now.

Everyone's specific situation is different and this is meant only to give you a general idea.

I have already contacted Congressman Adam Putnam's office (the Representative for my area) asking what the plans are if the bill passes. When I get an answer, I'll post it here. Subscribe to this blog in order to receive automatic updates from me on this and other topics involving home ownership.