Portability of Homestead Savings is available to Floridians
In 2008, Florida voters adopted a constitutional amendment (i.e., Amendment 1 aka “Portability Amendment”) which granted added tax relief to homesteaded property owners. The amendment gives homesteaded owners the ability to transfer some or all of their SOH benefits to a new homesteaded property. The accumulated difference between your assessed value and the just market value is your “SOH benefit”. Although the initial intent of the SOH Amendment was to allow homeowners the ability to stay in their homes when values were rising it also had a side effect – it discouraged homeowners from moving to a new residence for fear of giving up all their accumulated property tax savings.
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|Year||CPI Change *||Cap *|
*The Save Our Homes (SOH) cap was established in 1995 according to section 193.155(1), of the Florida Statutes.The SOH cap is placed on the Assessed Value the year after the property receives a Homestead Exemption and is based on the lower of the following:
Three percent of the Assessed Value of the property for the prior year, or the percentage change in the Consumer Price Index (CPI) as reported by the U.S. Department of Labor, Bureau of Labor Statistics.
Example: You sell your current Florida Homestead Property that has a Just (Market) Value of $400,000 and an Assessed Value of $300,000 ($400,000 – $300,000 = $100,000 in SOH benefit). You buy a new home for $400,000. The $100,000 SOH benefit is applied to the new homes Just (Market) Value to create a lower Assessed Value.
The rules regarding portability are set forth in Section 193.155(8), Florida Statutes. Essentially, a homeowner may “port” their SOH benefit to their new home as long as they establish their new homestead within two (2) years of abandoning their previous homestead. Note there are different limitations and restrictions on your ability to port. As always, if you have any questions concerning the foregoing, we urge you to consult with your real estate attorney.