Florida has a long history of manipulating the ad valorem taxes for its property owners. Some of these include the amount of the homestead exemption, save our homes benefit. (limits the increases in assessed value to 3% or Consumer Price Index (CPI) whichever is less), and the latest is portability, also known as the “Transfer of Homestead Assessment Difference”, is the ability to transfer the dollar benefit of the Homestead CAP from one Homestead to another. The Homestead CAP is the difference between market or just value and assessed value, often known as the Save Our Homes Benefit. You may only go only one tax year without having a homestead exemption in order to transfer your CAP.
- There are time limits that apply – you may transfer your CAP as of January 1 of either of the 2 immediately preceding years.
- Homestead Exemption Application required, along with the Transfer of Assessment Limitation Application (DR-501T “Transfer of Homestead Assessment Difference” application)
- The maximum amount of CAP transfer from a single homestead is $500,000.
- The portability benefit is based on a precentage of the difference between the just value and assessed value of the property. Thus, the benefit is maximized when a property owner “upsize” (buying a higher valued property), but still benefits from “downsize” (buying a lower valued property) too (although not as much).
- It can be used an unlimited number of times.
- The Taxable Value is multiplied by millage, which is determined by local government each year. This just shifts the tax burden to other property owners.
- Applies to all Florida counties.
Although most people think that these changes help them to reduce their real estate tax burden, it appears to be more favorable for the richest property owners with not only limits the increases of assessed values (under save our homes) and portability favoring higher priced real estate. In addition, the property appraiser has to hire more people to oversee the calculation of these changes.
In the Real Estate Market?
You should consider using a realtor. I could save you money especially with new home builders and it does not cost you anything. So why not? Let me save you money!!! If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).
As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota. My email address is email@example.com, or call me at 813.205.9280. If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.