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

About the author

Marine LAVAUD

Sales associate

Having worked on 3 continents : Europe, Asia and America, with a marketing and real estate background (diploma of expertise in real estate in France and own brokerage agency near Paris), I want to put the skills I acquired during my previous career to the benefit of people, who are looking to buy and sell in St Augustine area. I love this region, where a part of my family moved there 15 years ago. Fluent in French, certified Leading RE relocation specialist, I know by experience, how stressful it can be, when you're looking to buy or sell a house, especially if you don't know the area. I commit myself to provide to the customers who will contact me, an excellent level of service, honesty, availability and to assist them throughout the whole process of buying and/or selling, making it smooth and enjoyable. My goal is to advise wisely sellers and buyers and create happiness in every transaction I do.

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