Homestead Tax Assessment Cap in Florida
The Save Our Homes amendment (Art. VII, §4) caps annual homestead assessment increases at 3% or CPI (whichever lower). Creates a growing gap between assessed and market value over time. Resets to market value upon sale.
How It Works
- Maximum 3% annual assessment increase
- Or CPI if lower than 3%
- Creates "homestead differential" over time
- Non-homestead: 10% cap applies instead
Sale Impact
- Assessed value resets to market value for buyer
- Can dramatically increase new owner's taxes
- Portability: seller can transfer up to $500K benefit
- Buyer does not receive seller's cap benefit
Revenue Effects
Reduces local government tax base. Long-time owners pay less than newer owners. Millage rates may increase. Provides homeowner stability and encourages long-term ownership.
Related Terms
- Equity — Tax equity
- Encumbrance — Tax obligations
Barnes Walker Real Estate
Barnes Walker's attorneys advise on Save Our Homes benefits and portability for Florida homeowners. Request a legal inquiry for assistance.
Florida Law Reference
Art. X, § 4, Fla. Const.; Fla. Stat. Ch. 196
Florida's homestead exemption provides up to $50,000 in property tax relief and constitutional protection from forced sale by most creditors. The Save Our Homes amendment caps annual assessment increases at 3%.
Fla. Stat. Ch. 193
Governs the assessment of real and personal property for ad valorem taxation, including the determination of just value by the county property appraiser.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC