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Save Our Homes Assessment Limitation And Portability Transfer
Save Our Homes Assessment Limitation
After the first year a home receives a homestead exemption and the property appraiser assesses it at just value, the assessment for each following year cannot increase more than 3% or the percent change in the Consumer Price Index whichever is less.
This is called the "Save Our Homes" (SOH) assessment limitation. The accumulated difference between the assessed value and the just (market) value is the SOH benefit. (See section 193.155, Florida Statutes)
Even if the value of your home decreases, the assessed value may increase, but only by this limited amount. The assessed value will never be more then the just value of your home.
Save Our Homes Portability Transfer
If you are moving from a previous Florida homestead to a new homestead in Florida, you may be able to transfer or "port", all or part of your homestead assessment difference.
If you are eligible, portability allows most Florida homestead owners to transfer their SOH benefit from their old homestead to a new homestead, lowering the tax assessment and consequently, the taxes for the new homestead.
You must file the Transfer of Homestead Assessment Difference (Form DR-501T) with the homestead exemption application. The deadline to file these is March 1.
The maximum allowed for portability transfer is $500,000 of accumulated SOH assessment difference from the prior homesteaded property to a new homesteaded property. It is a one-time credit that you apply for when you establish a new homestead.
How Is Portability Calculated?
If your new homestead property is of equal or greater value:
Example: (Values are based on the Certified Value as of January 1)
Previous Homestead Market/Just Value: $300,000
Previous Homestead Assessed Value: $200,000
Portability: $100,000
New Homestead Market/Just Value: $500,000
New Homestead Assessed Value: $500,000
Portability: $100,000
New Assessed Value: $400,000
Homestead Exemption: $25,000
Taxable Value: $375,000
If your new homestead property is of lesser value, you receive a percentage of the savings.
Example: (Values are based on the Certified Values as of January 1)
Previous Homestead Market/Just Value: $500,000
Previous Homestead Assessed Value: $200,000
Portability: $300,000
Portability Percentage: $300,000/$500,000 = 60%
New Homestead Market/Just Value: $150,000
Actual Portability Amount: $150,000 x 60% = $90,000
New Assessed Value: $60,000
Homestead Exemption: $25,000
Taxable Value: $35,000