10% Assessed Value Cap Available for Non-Homestead Property Owners

Beginning with the 2009 tax roll the assessed value of non-homestead property, for all tax levies with the exception of school taxes, cannot be increased by more than 10% each year. The value basis will always be the assessed value of the previous year – for 2009 the basis is the property’s 2008 assessed value. (See example)

The Legislature adopted three statutes to implement the 10% cap on non-homestead residential and non-residential properties, explaining the conditions requiring the reassessment and resetting of the cap and the notification process when a change of ownership or control of more than 50% occurs.

Section 193.1554 applies to non-homestead residential property with no more than 9 dwelling units and to vacant property zoned for residential uses. A change of ownership or control would result in the removal of the 10% cap on the January 1 such change. The value of new construction is added as of the January 1 after the construction is complete.

Section 193.1555 applies to all non-residential properties. It provides for the reassessment of the property and resetting of the 10% cap when a qualifying improvement increases the market value of the property by at least 25%. The ownership and control provisions are the same.

Section 193.1556 explains the notification process when a change of ownership or control of more than 50% occurs. The Department of Revenue has created a notification form, Form DR-430, available at http://dor.mydlorida.com/dor/property/sb4d.html.

 THIS FORM IS ONLY REQUIRED WHEN A DEED IS NOT RECORDED IN THE COUNTY’S PUBLIC RECORD.