What is the “Save Our Homes” Assessment Limitation?
The Save Our Homes (SOH) assessment limitation in Florida is a significant property tax relief measure for homeowners. Here’s a breakdown of how it works and its benefits:
The Save Our Homes (SOH) assessment limitation is a Florida constitutional amendment that helps homeowners by limiting annual increases in the assessed value of their homesteaded properties. This limit is set at the lesser of 3% or the Consumer Price Index (CPI). It’s important to note that this is a limit on the assessed value increase, not a cap on the taxes paid!
Once a homestead exemption is granted, the property is initially assessed at its market value. In subsequent years, the assessed value increases by the SOH limitation unless improvements are made. The SOH benefit is the difference between the market value and the assessed value.
THIS IS REALLY IMPORTANT: Florida law allows homeowners to transfer their accumulated SOH benefit when moving to a new homestead within the state of Florida. This “portability” can lower the tax assessment and taxes on the new home. In order to ‘port’ the benefit, a homestead exemption for the new home must be established within three years of leaving the old home, and the Transfer of Homestead Assessment Difference form must be filed by the March 1 deadline.
To receive the SOH benefit, homeowners must apply for a homestead exemption. Once approved, the SOH limit is applied automatically. The application for both the homestead exemption and the portability (if applicable) is typically due by March 1 and can usually be submitted online or in person. *Late applications may be possible under certain conditions.
The SOH limitation applies exclusively to homesteaded residential properties. New construction or additions can cause the assessed value to exceed the SOH limit initially. When a homesteaded property is sold, the assessed value resets to market value for the new owner, who must then qualify and apply for the homestead exemption. Additionally, a “recapture” rule exists, allowing the assessed value to increase by up to 3% annually even if the market value declines, until it matches the market value.
When applying be prepared to provide the following evidence of ownership and proof of your permanent Florida residency:
Your recorded deed or tax bill.
A valid driver’s license or state ID card reflecting the property address.
At least one of the following: 1. Florida vehicle registration. 2. Florida voter registration card. 3. Formal declaration of domicile recorded in public records of the Florida county of the home being homesteaded.
Social security numbers of the applicant and spouse when they are both on the deed.
The deadline to file is each calendar year by March 1st.
I would suggest you always confirm the specific application requirements with your local county property appraisers office as some may have variations. The website in Collier County is http://www.CollierAppraiser.com
Their main office phone number is: 1-239-252-8141
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