BCPAO - Assessment Caps

Save Our Homes Cap |

In 1992, the Florida Constitution was amended to limit the annual increases in the assessed value of property receiving Homestead Exemption to 3% or the percentage change in the Consumer Price Index, whichever is lower. This assessment limitation is commonly referred to as the 'Save Our Homes' or 'SOH' cap.

Save Our Homes Annual Caps

If you own and occupy your home as your permanent residence and receive the $25,000 Homestead Exemption, you will automatically qualify for the cap.

No, the cap limits the increase of the assessed value of your property. A property's assessment could go down, but property taxes could go up if the local taxing authorities increase their tax (millage) rate.

If both the Homestead property and vacant lot are owned by the person receiving the Homestead Exemption, the SOH cap can be extended to the vacant lot if requested by the owner.

The full value of any improvements (not including normal maintenance) or additions to the property will be added to the capped assessed value.

If property receives a partial Homestead Exemption, either because of the type of ownership (i.e., two owners with only one receiving Homestead) or because of the type of property (i.e., a duplex that has one side used as Homestead and the other side rented), the cap applies only to that portion receiving Homestead Exemption and the remainder is assessed at full market value.

In September 1995, the Governor and Cabinet approved a rule directing property appraisers to raise the assessed value of a qualifying Homestead property by the maximum of 3% or the annual change in the Consumer Price Index, whichever is less, on all properties assessed at less than full market value whether or not that property's market value increased during that calendar year.

For example, a property's market value did not change. However, since its assessed value remains below market value, the Property Appraiser must increase the assessed value by the annual limit to bring its value closer to full market value.

Roll Year	Market Value	Assessed Value With Cap	CPI from Prior Year or 3% Cap	Factor (%/100)	Assessed Value Change*	Assessed Value Change*
2005 Base Year	$100,000	$100,000	N/A	N/A	N/A	N/A
2006	$100,000	$100,000	3.0	0.030	-0-	-0-
2007	$110,000	$103,000	3.0	0.030	$100,000 x 0.030 = $3,000	$3,000
2008	$110,000	$105,575	2.5	0.025	$103,000 x 0.025 = $2,575	$2,575
2009	$115,000	$108,742	3.0	0.030	$105,575 x 0.030 = $3,167	$3,167
2010	$125,000	$108,851	0.1	0.001	$108,742 x 0.001 = $109	$109
2011	$120,000	$111,790	2.7	0.027	$108,851 x 0.027 = $2,939	$2,939
2012	$125,000	$113,467	1.5	0.015	$111,790 x 0.015 = $1,677	$1,677
2013	$135,000	$116,871	3.0	0.030	$113,467 x 0.030 = $3,404	$3,404
2014	$160,000	$118,858	1.7	0.017	$116,871 x 0.017 = $1,987	$1,987

In the preceding example, the Base Year will always be either the first year the program started (1994) or the first year that the Homestead exemption was filed and approved. The assessed value will always equal the market value in the base year since no caps have been applied yet. In the example above, the assessed value stayed at $100,000 in 2006 because there was no increase in market value from 2005. In 2008, since the market value increased, the Consumer Price Index (CPI) of 2.5% was applied, as it was lower than the Amendment 10 cap of 3%. In other words, applying a 2.5% increase to the previous year’s assessed value results in an increase in assessed value of $2,575 in this particular case. In the example, this same procedure has been applied for each calendar year thereafter to show how it works on a year-to-year basis with different CPIs. The assessed value is either full market value or less, and assessed value cannot exceed market value. This limitation applies until the Homestead property is sold and the market value becomes the assessed value in a new base year, at which time the process starts over.

On January 1st following the sale of the property, the Homestead Exemption and the SOH cap are removed, and the assessed value, if lower than market value, will be increased to equal the market value. The new owner can apply for Homestead Exemption and will be entitled to a new SOH cap. If the new owner has never owned a home in Florida, the cap will be applied to the assessed value the year after Homestead Exemption is first granted. If the new owner had a Homestead Exemption on a previous Florida home, they may be able to transfer their SOH differential to the new home (see Portability section below).

Homestead Portability |

The 'Save Our Homes Portability' benefit became available in 2008, and is your opportunity to transfer the dollar value difference between the assessed value and market value of your prior Homestead property to a new Homestead property anywhere in the State of Florida. The maximum amount that can be transferred to your new Homestead is $500,000.

The application deadline for transferring your Save Our Homes cap is March 1st.

You will apply for Portability when you apply for Homestead Exemption by using form DR-501T (Transfer of Homestead Assessment Difference). This application is required in addition to the Homestead Exemption application.

Once completed please submit the form to our office in person or by mail. If you mail the application, be sure to make a copy of the application for your records, and send the form Certified Mail - Return Receipt Requested.

If you are porting your savings from another county to Brevard, please advise us of this. Your application form will be sent to the Property Appraiser's office in the county where your prior Homestead was located for verification and qualification. Your prior Property Appraiser will issue a Certificate of Portability form DR-501RVSH and return the form to our office for processing.

To transfer your Save Our Homes cap, you must establish a new Homestead on or before January 1st of the third tax year after you abandoned your prior Homestead.

No, if you already own another property such as a second home, beach house, condominium, or a rental and you establish your Homestead at that property with required application and documentation, you can abandon the old Homestead and apply for the Portability benefit on the newly established Homestead.

Yes. Portability moves an assessment limitation to a new Homestead and the other exemptions available are not affected by this change. You may file for any other exemptions for which you qualify.

EXAMPLE 1: When moving to a home with equal or higher market value than your prior home, the statute allows for the following:

" . . . the assessed value of the new Homestead shall be the just [market] value of the new Homestead minus an amount equal to the lesser of $500,000 or the difference between the just [market] value and assessed value of the immediate prior Homestead . . ."

If your new home's market value is higher than your previous home's market value:

Prior Home
Market Value	$ 400,000
Assessed Value	$ 250,000
$ 400,000 - $ 250,000 = Portable Cap	$ 150,000

New Home
Market Value	$ 600,000
Minus Portable Cap	- $ 150,000
Assessed Value	$ 450,000

EXAMPLE 2: When moving to a home with a lower market value than your prior Homestead, the statute allows for the following:

" . . . the assessed value of the new Homestead shall be equal to the just [market] value of the new Homestead divided by the just [market] value of the immediate prior Homestead and multiplied by the assessed value of the immediate prior Homestead . . ."

If your new home's market value is lower than your previous home's market value:

Prior Home
Market Value	$ 400,000
Assessed Value	$ 250,000

New Home
Market Value	$ 275,000
$ 275,000 / $ 400,000 = 68.7%. $ 250,000 x 68.7% = Assessed Value	$ 171,750

In both examples above, the portable cap is less than $500,000, so no further adjustment required.

Non-Homestead 10% Cap |

Beginning in 2009, the assessed value of non-Homestead real property cannot be increased more than 10% over the prior year's assessed value.

If the property is sold, the cap is removed and the new owner establishes a new base-year for the cap to be applied. When there is a change of ownership but no deed or other instrument showing the conveyance has been recorded with the Clerk of Court, the owner must complete form DR-430 and file it with the Property Appraiser's office. Failure to properly notify the Property Appraiser of a change in ownership could result in a tax lien on any property receiving an unqualified cap.

No, the 10% cap does not apply to school tax levies.