If you thought of selling your home but worry about what would happen to your property taxes, then this article is for you!
Whether you are downsizing or just moving to a new Florida location (moving within Florida), following the Florida Statutes, chances are that you may have a very high likelihood to transfer the Save Our Homes Assessment Limitation benefit and save in property taxes. Here is how:
Save Our Homes Assessment Limitation
Before understanding portability transfer, it is important to understand what the Save Our Homes Assessment Limitation benefit is.
After the first year a home receives a homestead exemption and the property appraiser assesses it at
just (market) value, the assessment for each following year cannot increase more than 3 percent or the percent change in the Consumer Price Index (CPI), 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 than the just (market) 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.
To transfer the SOH benefit, you must establish a homestead exemption for the new home within three
years of January 1 of the year you abandoned the old homestead (not three years after the sale). You must file the Transfer of Homestead Assessment Difference (Form DR-501T) with the homestead exemption application. The deadline to file these forms is March 1. Complete all forms and applications required for the exemption and file them with your county property appraiser. If the property appraiser denies your application, you may file a petition with the county’s value adjustment board.
Change or Transfer of Ownership
Remember that a change or transfer of ownership may alter the status of your homestead and it could lose the SOH.
The Florida law defines a change of ownership as any sale, foreclosure, or transfer of legal title or beneficial title in equity to any person. Nevertheless, there are changes that will not trigger property reassessment, such as:
• a change or transfer between spouses
• certain transfers upon death
• certain transfers when the same persons are entitled to the homestead exemption both before and after the transfer
For all exceptions, see s. 193.155, F.S.
In summary, as life evolves and you enter new phases, you can feel confident to move within Florida without breaking the bank! You can take advantage of the SOH Portability Transfer to move to a different home, that better fits your needs.
If you are thinking of selling your property and would like to further discuss, get in touch with me today, because here, real estate is made easy!
Marina Orfali DeRobertis
☎️847.530.1593
Berkshire Hathaway HomeServices
EWM Realty
The Monica Betancourt Group
For more or detailed information, you can go to The Department of Revenue’s website at http://floridarevenue.com/property/Pages/Taxpayers.aspx or you can see examples of portability calculations at: https://www.miamidade.gov/pa/library/exemptions-portability-calculations.pdf