Portability:  You are now free to move anywhere in Florida!

In November 1992, Amendment 10 to the Florida Constitution commonly known as the Save Our Homes Amendment was approved by the people of Florida to prevent homeowners from being forced out of their homes due to rapidly rising real estate values. It works on the premise of limiting annual increases in the assessed value of homestead property to keep real estate taxes relatively constant from year to year. The benefits of this provision begin on the year after a homestead exemption is first granted; starting that year the property’s assessed value increase is limited to no more than 3% or the annual change in the Consumer Price Index (CPI) whichever is lower.

Homesteaders began to realize this benefit in 1995 and since then the Assessed Value increase has been 3% five times and as low as 0.1% in 2009.The Save Our Homes Cap for 2010 is 2.7%

During the real estate boom, many homesteaders saw the market value of their home increase significantly each year while their home’s assessed value experienced modest increases. The difference between their home’s market value and assessed value, the so called Save Our Homes Cap, remained sheltered from taxation and kept growing for as long as the homesteaders remained in their home. Unfortunately, this kept many homesteaders from moving to another home for fear of losing their tax sheltered value.

That changed on January 28, 2008 when Florida voters passed Amendment 1 to the State Constitution.

Beginning in 2008, homesteaders were no longer trapped in their homes for fear of losing their Save Our Homes Cap. They could now transfer up to $500,000 to another home anywhere in Florida; what we call PORTABILITY. To take advantage of this benefit you must be approved for a new Homestead exemption on another property within two years of your last homestead.

Keep in mind Homestead exemptions are granted as of January 1 of each year, thus the two year window does not start on the day you sell or abandon your former home. For example, if you had a homestead exemption granted as of January 1, 2008 and subsequently moved, in order to qualify to transfer your Save Our Homes Cap you must have a new homestead exemption approved as of January 1, 2009 or January 1, 2010. If you had a homestead as of January 1, 2009 you must have a new homestead exemption approved as of January 1, 2010 or January 1, 2011.

 

Last Update 04/25/10

 

 

To see your accumulated value resulting from the Save Our Homes Cap, (it changes every year), click on Property Record Search. Locate your property by:

  1. Entering your Property ID number or your name or home address,
  2. Clicking Submit,
  3. Selecting Click Here for Prior Year’s Values,
  4. Clicking on the “Save Our Homes” Cap button will bring up a screen that looks like this:

 
Valuation Date: 1/1/08
                       
Just (Market) Value:   $xxx,xxx  Assessed Value:             - $ xx,xxx
Save Our Homes Cap:       $     
Assessed/Market Ratio: xx%                         
If your Market and Assessed values are the same, the Save Our Homes Cap would be zero and you have no value to transfer to a new homestead.

If the Market Value of your new homestead is the same as or greater than the Market Value of your previous homestead you can transfer all your Save Our Homes Cap, up to $500,000. This is often referred to as “upsizing”.

If the Market Value of your new homestead is less than the Market Value of your previous homestead you are “downsizing”. In that case you can multiply the Market Value of your new homestead by the Assessed/Market Ratio, (XX%), to determine your new homestead’s Assessed Value.  The difference between your new home’s Market and Assessed values is your new Save Our Homes Cap.