Florida Constitution
The Florida constitution provides for a $25,000 exemption, which is deducted from a property's assessed value if the owner qualifies. Applicants who timely file by March 1, possess title to the real property, and are bona fide Florida residents living in the dwelling and making it their permanent home as of January 1, qualify for the exemption.
Properties granted Homestead Exemption also automatically receive the "Save Our Homes", Amendment 10, benefit.
So if you purchased a House/Condo in 2021 as your permanent residence, you will want to file for your Homestead Exemption between
JAN 1 AND MARCH 1
OR
If you sold your house/condo that was Homestead, you will want to transfer your Homestead assessment to the new house/condo.
How to file for a Property Tax Exemption
New applications for all exemptions may be filed by mail or in person, at the Property Appraiser's office between January 1 and March 1, with one exception. Florida law allows new homestead applications, only, to be filed prior to January 1 of the year the exemption is to be effective.
Additional $25,000 Homestead Exemption
All persons receiving the standard homestead exemption who continue to qualify for that exemption automatically qualify to receive the additional homestead exemption. No further application is necessary. The additional $25,000 exemption applies to taxable values greater than $50,000 and up to $75,000, for all tax levies except school district levies.
Save Our Homes
"Save Our Homes" limits any increase in assessed value of properties with the Homestead Exemption to 3%, or the Consumer Price Index change, whichever is less, in the second consecutive year the exemption is received, no matter how much the market value of the home increases. This is why someone who has lived in a home in Florida for a long time will have a tax bill far lower than the market value of their home would otherwise dictate.
Another exception occurs when ownership of a homestead property is changed in any way, affecting the homestead. Assessed value then returns to fair market (just) value in the year following the change.
Save Our Homes Portability
The difference in the assessed value of a home (what the taxes are based on) and the market value of a home (what it would sell for in a free and open market) is what we call portability. Before portability came along, some homeowners wouldn’t consider a move because they didn’t want to lose their low tax bills. With portability, they can take the savings with them, up to a maximum of $500,000. Given that Florida has around a 2% average tax rate, that means a homeowner with $500,000 in portability will see a tax bill about $10,000 a year lower than it would be without it.
Every Florida resident receiving homestead exemption in Florida who gives up that homestead and wishes to transfer a Save Our Home assessment difference from the previous homestead, must re-establish a homestead exemption within three (3) years of January 1 of the year in which the person left the prior homestead. Portability requires a separate filing that many homeowners don’t realize they have to complete. In addition to the Homestead Exemption Form, Form DR501T must be completed and submitted to the property appraiser in the county where the new homestead is located.
Homestead and Rental
Renting out a homesteaded property could result in losing the homestead exemption. According to Section 196.061, Florida Statutes, states in part, “The rental of all or substantially all of a dwelling previously claimed to be a homestead for tax purposes shall constitute the abandonment of such dwelling as a homestead, and the abandonment continues until the dwelling is physically occupied by the owner. However, such abandonment of the homestead after January 1 of any year does not affect the homestead exemption for tax purposes for that particular year unless the property is rented for more than 30 days per calendar year for 2 consecutive years.”
Section 196.011(9)(a) states in part, “The owner of any property granted an exemption who is not required to file an annual application or statement shall notify the property appraiser promptly whenever the use of the property or the status or condition of the owner changes so as to change the exempt status of the property. If any property owner fails to so notify the property appraiser and the property appraiser determines that for any year within the prior 10 years the owner was not entitled to receive such exemption, the owner of the property is subject to the taxes exempted as a result of such failure plus 15 percent interest per annum and a penalty of 50 percent of the taxes exempted.”
The deadline due date for this form and new applications is March 1
(CLICK THE LINK BELOW TO BE TAKEN TO THE PROPERTY APPRAISER PAGE FOR EACH COUNTY)
