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WHAT ARE THE BENEFITS OF SAVE OUR HOMES?
The main benefit is it limits the increase of assessed
value of homesteaded properties to a 3% cap per year. This has been a valuable asset to all homesteaded owners since
1996. It has protected homesteaders
from the unprecedented market fluctuation in recent years.
WHAT WOULD AMENDMENT 1 DO FOR FLORIDA HOMESTEADED
It would allow homesteaded owners to carry their Save
Our Homes cap to their new homesteaded
Key points to remember:
It is retroactive for new 2008 homestead application.
Allows portability of homestead exemption from 2007.
It allows up to $500,000 of cap to carry to new
Portability is state wide.
If AMENDMENT 1 passes, “portability” provides for the
transfer of accumulated Save-Our-Homes benefits. Homestead property owners will be able to transfer their
Save-Our-Homes benefits to a new homestead; except, if this revision is
approved by the electors on January 29, 2008 and if the new homestead is
established on January 1, 2008, the previous homestead must have been
relinquished in 2007. If the new homestead has a higher just value than
the previous one, the accumulated benefit can be transferred; if the new
homestead has a lower just value, the amount of benefit transferred will be
reduced. The transferred benefit may
not exceed $500,000. This
provision applies to all taxes.
PORTABILITY - If the market value of your
homestead property is greater than its assessed value, this proposal would
permit you to transfer that difference in value to your new property under the
If the property you are moving to has a greater just value than the
property you are moving from, you will be able to transfer your actual cap
savings to your new property. The maximum amount of cap savings you can
transfer is limited to $500,000.
If the property you are moving to is less expensive than the property
you are moving from, you will be able to transfer a percentage of your actual
cap savings to your new property.
The amount of cap savings you can take with you to your new property is
determined by dividing the market value of your new property by the market
value of your current homestead property. You then take that amount and
multiply it by the assessed value of your current homestead property.
There are no changes planned to the existing Save Our Homes assessment cap
benefits. Portability will be an added benefit.
Portability is applicable
throughout the State of Florida.
It is effective back to January 1,
2007, and come January 2009, will be retroactive for up to two (2) years.
are additional rules for portability when more than one person has established
If two or more people own multiple homesteads and are moving
into only one new homestead, they can only transfer a benefit from
one of the former homesteads. So if a newly married couple is selling two
former homesteads to move into one new homestead, they will choose to transfer
whichever of their SOH benefits is largest. The size of the transferable
benefit is capped at $500,000.
If two or more people jointly own a homestead and are moving
into more than one new homestead, they must divide the value of their SOH
benefit among the new homesteads based on the number of owners of the prior
homestead. The total amount of transferable benefits is capped at $500,000. So,
if a couple is moving out of their jointly owned homestead with a $100,000 SOH
benefit into two new homesteads, they will divide the benefit in half and apply
a $50,000 benefit to each of their new homesteads.
PORTABILITY OF YOUR HOMESTEAD EXEMPTION ONLY APPLIES
TO QUALIFIED FLORIDA RESIDENTS AND WILL APPLY TO ALL AD VALOREM TAX LEVIES.