If you are permanent Florida resident and want to transform a property into your homestead residence, don’t forget to apply for :
- Homestead exemption by March 1st, (form DR 501)
If you qualify for the homestead exemption, you can reduce the assessed value of your homestead up to $50 000. There are also additional exemptions, for senior citizens, members of the military or other categories of the population.
To check if you qualify, you can go on the St Johns county’s property appraiser website : https://www.sjcpa.us/exemptions/
Property taxes may be affected by change in ownership. But as property taxes are paid in arrear, buyers won’t see the change before January of the next year. Properties will be reassessed at that time with the new market value updated.
- The portability (form 501 T)
If you have an amount to port ( difference between the market value and the assessed value of your home)
What is the portability ?
Since 1995, when a property begins receiving a Homestead Exemption, the assessed value on the tax roll cannot increase more than 3% or the Consumer Price Index, whichever less = Save Our Home Amendment.
However, this benefit was lost when owners bought a new home. Through the introduction of Amendment 1 on January 29, 2008, Florida voters amended the State constitution to provide for transfer of a Homestead Assessment Difference from one property to another = PORTABILITY CONCEPT
What is the amount limitation ?
Port is limited to a person’s ownership share and cannot exceed $500,000.
How do I calculate the transfer of homestead assessment from one property to another?
It will depend if the home you purchase has a higher value than your previous home.
If you are up-sizing, you will transfer the same amount of SOH
|Prior home||New home|
|Market value||$ 300 000||$ 400 000|
|SOH difference||-$ 100 000||-$100 000|
|Assessed value||$ 200 000||$ 300 000|
If you downsize, you will need to apply this formula :
New home market value/prior home market value)*prior assessed value = new assessed value.
Then SOH = Market value – assessed value.
|Prior home||New home|
|Market value||$ 300 000||$ 250 000|
|SOH||-$ 100 000||$ 83 334|
|Assessed value||$ 200 000||(250 000/300 000)*200000=166 666|