Question 1

What is the Save Our Homes cap and how does it affect just value assessment?

Accepted Answer

The Save Our Homes amendment (Article VII, Section 4(d), Florida Constitution) limits the annual increase in assessed value of homestead property to 3% or the change in the Consumer Price Index (CPI), whichever is less. This means the assessed value (used for tax calculation) can be significantly lower than the just value (fair market value) in appreciating markets. Example: a property purchased years ago may have a just value of $500,000 today but a substantially lower assessed value due to the SOH cap. The cap resets when the property is sold or the homestead exemption is removed, causing the new owner’s assessed value to jump to the current just value.

Question 2

What is the portability of Save Our Homes benefits in Florida?

Accepted Answer

Portability allows a homestead owner to transfer up to $500,000 of the accumulated SOH benefit to a new homestead property. The benefit is the difference between the just value and the assessed value. If the homeowner accumulated a benefit equal to the difference between their just value and their lower assessed value, they can apply that reduction to their new homestead’s assessed value. Requirements: the new homestead must be established within 3 years of abandoning the old homestead, the owner must apply for the portability benefit with the property appraiser, and the maximum portable amount is $500,000. This provision encourages Florida homeowners to move without losing their accumulated tax savings.

Question 3

How does the 10% non-homestead cap work in Florida?

Accepted Answer

For non-homestead properties (investment, commercial, second homes), Florida limits annual assessed value increases to 10% (Article VII, Section 4(g)). This is less protective than the 3%/CPI homestead cap but still provides significant savings in rapidly appreciating markets. The 10% cap: applies to all non-homestead real property, resets when the property is sold or ownership changes, does not apply to school board millage (which is assessed at full just value regardless), and does not affect the just value determination (only the assessed value used for tax calculation). Property investors should factor the cap reset into their acquisition analysis, as property taxes may increase substantially upon purchase.

Just Value Assessment: Property Tax

Just Value Assessment and Property Tax in Florida

Save Our Homes Cap (Homestead)

Portability

Non-Homestead 10% Cap

Related Terms

Barnes Walker Property Tax

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