Homestead Portability

If you have owned your home in Florida for a while, you have probably accrued a significant “Save Our Homes” benefit value. The Save Our Homes amendment to the Florida constitution caps the increase of your home’s assessed value at 3% per year. The savings add up over time and can be transferred to your next Florida home when you move.

1. The most common misconception we hear is that the benefit only helps if you are moving to a more expensive house. It doesn’t matter if you are moving up, down, or laterally in price but the portable amount is capped at $500,000.
2. The portable amount is the difference between the original home’s Just Market Value and the Assessed Value on which you pay property tax.
3. If you are moving to an equal or greater value home, the portable amount is the same as your previous savings. It is subtracted from the new home’s Just Market Value to cap the new Assessed value.
4. If you are downsizing, the portable amount is the percentage of your previous savings. If your old home’s Just Market Value was $500K but was assessed at $400K, the assessed value of the new home would be capped at 80% of its Just Market Value.
5. If you are combining two households with separate homesteaded properties, the higher differential is the one used. This results in the most savings possible.
6. If you are separating and each previous owner is buying a separate property, the savings are divided by the number of previous owners and each can apply their portion to their new homes.
7. Each of the counties in Florida have agreed to allow residents coming from another of the counties to bring their benefit with them when they move.
8. The new home must be purchased and approved for homestead exemption within 2 years of selling or moving out of the previous homesteaded property.

For information about homestead exemption, what it is, and how to apply check out our previous blog here: http://www.jacksonvillehomes365.com/8298-2/ Savings from portability can be significant, and you don’t want to just leave money out there. The county will allow you to pay more taxes than required if you want but there is no reason to pay more than you must. If you have any questions about this benefit let us know. If we can’t answer it, we have relationships with some fantastic people who can.