Florida's Save Our Homes Law
Property tax savings are portable in Florida, when you sell your home.
In 1992, Floridians wisely voted and passed Constitutional Addendum 10, also known as Save Our Homes, which shields homeowners who have filed for homestead exemption, from runaway property taxes, which can result from increasing property values, in upward moving or hot real estate markets. The law, capped increases to a property's assessed value to 3% or less annually, based on the Consumer Price Index. This law protects home owners from large property tax increases. Wisely again, in 2008, voters amended the Florida Constitution, to allow for the "portability" of their accumulated homestead exemption tax savings to another property, which may be of greater or lesser value. The law also gives home sellers up to two years, to transfer the savings to their new home, which is currently capped, at $500,000 of portable savings.
Below, you'll find answers to the most commonly asked questions about the Save Our Homes Tax Portability. Learn how it will impact your property tax obligation, when purchasing a more expensive or less expensive home.
How do I know if my property qualifies for " Portability"?
If you have lived in the property you are selling, and have filed for the homestead exemption on your home, and meet the qualifying guidelines, then you are eligible to "port" or transfer your tax savings, to your new home.
"An investment in knowledge pays the best interest."
What is homestead exemption?
The exemption is a constitutional privilege, which reduces the assessed value of residential property up to $50,000 for qualified permanent residents. (The first $25,000 are exempt even from school taxes.)
How can I determine what my new property tax bill will be?
The tax benefit your can "port" to your new home, will depend on the value of the property you are selling and the one you are purchasing. See the chart below, to learn how to calculate and estimate your new property tax obligation.
Planning your sales and purchasing strategy, will put you in control.
The chart below, illustrates the difference when you purchase a more expensive or less expensive residence.
Food for Thought
You may also qualify for additional property tax exemptions, if you are at least 65 years of age, disabled, widowed or an active duty or retired United States Military veteran, including Coast Guard and the Florida National Guard.
To learn more about property tax exemptions you may qualify for, visit the Florida Dept. of Revenue, by clicking on the following link: http://floridarevenue.com/property/pages/Taxpayers_Exemptions.aspx
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Anticipating you new property tax obligation, insurance, any monthly association fee and monthly mortgage payment (if any) puts you in control. If you need assistance in calculating your future property taxes, give us a call! We are happy to assist you!
Call us for a private consultation, about your personal selling situation.
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