Save Our Homes in Florida

Written by Nikki Smith Monday, 29 April 2013

To homebuyers in Florida: beware of misleading annual property tax assessments when researching homes online. 

An amendment to the state constitution known as Save Our Homes, around since 1995, caps annual increases to assessed property value at 3% or the change in the Consumer Price Index – whichever is lower. 

When the property changes ownership, the SOH property assessment value expires at the end of that calendar year. The new owner must apply for her own Homestead Exemption, and the property will receive the SOH benefit beginning the second year. I'm paraphrasing this article.

Homebuyers who are unaware of the program may view the annual property tax assessment listed on a real estate website or government database and mistakenly think their property tax assessment will be roughly the same. But in many cases the new assessment will be significantly higher than the old one, resulting in a large jump in annual property taxes that are due. 

SOH is only good for homes that are receiving the Homestead Exemption. Rental and investment properties do not qualify. In the majority of cases SOH may not be inherited. If the house is a duplex and 50% is owner-occupied principal residence, only 50% of the property assessment is shielded by SOH. 

Florida homeowners enjoy a Homestead Exemption of $50,000 for if their Florida property is their permanent residence, but they must apply for it. That amount is deducted from their property's assessed value and the taxes are based on that lower number. There are a number of other exemptions available ranging from persons with disabilities to veterans to widows and surviving spouses of service members.

About the Author

Nikki Smith

Nikki Smith

A graduate of California State University, Fullerton, where she served as executive editor of the school's award-winning Daily Titan newspaper, Nikki Smith moved to Washington D.C. in 2006 to take a job as a financial reporter. Since the demise of print, however, Ms. Smith has shifted her focus to the wonderful world of Web. At Federal Title she wears many hats including: copy writer, event planner, media liaison, graphic designer, Web developer and marketing strategist. She is the architect behind federaltitle.com and managing editor of its official blog.

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