$25,000 TPP Exemption
SOH PORTABILITY
What
is
“portability”?
The ability to transfer the savings benefit of the homestead property assessment
limitation (defined in FS
193.155), known as “Save Our Homes” (SOH) and described as the dollar value difference between
market value and assessed value, or the percentage thereof from one existing
homestead to another new homestead
property.
How and
when do I apply for “portability”?
You apply for portability when you
are applying for homestead exemption using Form DR-501T (Transfer of Homestead Assessment
Difference). This application is in addition to the homestead exemption
application.
If
you have already applied for the homestead exemption, you can download the
application from our website, or request a copy from our office, and submit the
completed application to the Property Appraiser.
If
porting your savings from another county:
upon submission, the form will be sent to the Property Appraiser of your
previous homestead for verification. Your previous Property Appraiser will issue
a “Certificate of Portability” (DR-501R) and return the form to your new
Property Appraiser for calculation of your portability benefit.
What is
the formula used to determine the
amount available for “portability”?
If you are upsizing
(buying home with higher
just market value than previous home) please refer to the following
example:
·
Previous Home Valued @ $400,000
and Assessed @ $200,000 (SOH Value) $400,000 - $200,000 = $200,000 (Portable
Amount)
·
New
Home Valued @ $500,000 - $200,000 (Portable Amount) = $300,000 (New Assessed
Value for New Home)
If you are downsizing
(buying home with lower just
market value than previous home) please refer to the following
example:
·
Existing
Home Valued @ $400,000 and Assessed @ $200,000 (SOH Value); $200,000 divided by
$400,000 = .50% (% eligible to “port” to new property)
·
New
Home Valued @ $300,000 X .50% (% eligible to “port”) = $150,000 (Assessed Value
of New Homestead)
What are the effective dates
of
“portability”, the new additional homestead exemption and $25,000 Tangible
Personal Property exemption?
The 2008 tax year - beginning January 1, 2008 - will be the
first year taxpayers are eligible to apply for the new changes listed above.
If I sold
my property in 2006 can I qualify for “portability”?
Unfortunately not, the law only allows portability
for any property with a homestead in 2007 moving forward -
and allows up to 2 years to use
the portability beginning with tax year 2007.
If I owned
property with another owner and they still live in my previous home can I apply
for “portability”?
The law requires the previous
exemption be forfeited before you can “port” any portion of the assessment cap
benefit. Meaning, the remaining owner may not receive the full benefit and must
re-apply. The “port” would be a portion
of the savings dependent on how many owners were on the deed.
Do I have
to purchase a new property to be eligible for the portability benefit?
No, if you already own another property
(2nd home, beach house, etc.) and establish your homestead at that address with
required documentation for the 2008 tax year - you can remove the homestead from
the old property and apply for the portability benefit on the newly established
homestead.
Can I also
apply for additional exemptions such as widows/widowers, disability or senior’s
exemption if I use “portability”?
Yes, “portability” refers to
adjusting the assessed value of the new homestead property; you may still apply
for any additional exemptions that you may be eligible.
What is the maximum SOH savings
benefit I can “port” to my new property?
The maximum amount you can port is $500,000.
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ADDITIONAL $25,000 HOMESTEAD
EXEMPTION
Will I
save as much on the additional $25,000 homestead exemption as I did on my
existing $25,000 homestead exemption?
No, due to the school tax levy not being part of this
additional exemption you will not; the additional exemption is calculated using
the millage rates minus the school tax levy which
makes up a large portion of the total millage or taxes
that you pay.
How is
this additional exemption calculated?
If
your property is assessed at $50,000 or less your homestead exemption will remain
the same amount as your current homestead exemption; however, properties assessed from $50,001 –
$74,999 will receive an increase proportionately up to $24,999 and any property
assessed over $75,000 will receive the full additional $25,000 homestead.
Must I
file another application to qualify for the additional $25,000 homestead
exemption?
No, the additional $25,000 homestead exemption is
automatic and will be calculated based on your assessment if you already have a
homestead exemption.
How does
this calculation affect my other additional exemptions such as widow/widowers,
disability, or senior exemption?
It
will not affect your other exemptions in any way; however regarding
calculation, the additional exemption will not be
applied to the school tax levy portion of the millage
rate.
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10% CAP FOR NON-HOMESTEAD
PROPERTIES
When will
the 10% cap for non-homestead properties become effective?
The 10 % Cap on non-homestead assessments will not
become effective until the 2009 tax
roll; the first date the property owner will be eligible to apply will be January
1, 2009.
How to do
I apply for the 10% cap for non-homestead assessment on my properties?
At
this point the law states that applications must be made with the Property
Appraiser’s Office by March 1, 2009. Legislation may be filed this year to make the
cap automatic on non-homestead properties.
This information will be listed on our website and on the application if
the legislation is passed.
May I
apply for this exemption on my homestead property?
No, this exemption is only available for
“non-homestead” properties.
What does
“non-homestead property” mean?
At
this time the Property Appraiser is awaiting clarification from the Florida
Department of Revenue, however it is our current
understanding that it will include all properties not receiving a homestead
exemption such as vacant land, commercial properties and rental properties.
Will the
10% cap reduce my taxes after I apply?
No, the 10% cap will cap the assessment from
increasing more than 10% the year following application for the
exemption.
Does the
10% cap apply to all taxing authority millage rates?
The 10% cap will apply to all millage rates except for school tax levies.
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$25,000
TPP EXEMPTION
When must I file my return to receive the
$25,000 Tangible Personal Property exemption?
The return must be filed by April
1st - of the tax year - in order to receive the exemption (or
within the applicable application deadline extension
period).
Since my
Tangible Personal Property value was less than $25,000 in 2007, do I have to
continue to file a Tangible Personal Property return?
Yes, your 2008 Tangible Personal Property return
serves as an application and must be filed in order to qualify for this new
exemption.
What if I don’t file a
return?
Failure to file a return constitutes a
failure to apply for the exemption.
Will there be changes on the most
recent Tangible Personal Property return?
There will be no changes on the return
mailed in January 2008; and no separate application is
required.
If I have multiple locations for my
business, am I required to file separately?
Yes, a return must be filed for each
location within the county where the owner transacts business.
Freestanding property placed at
multiple sites, other than where the owner transacts business, must have a
single return filed and will receive one $25,000 exemption (examples: vending
and amusement machines, LP/propane tanks, utility and cable company property,
billboards, and leased equipment.)
Does this exemption apply to mobile
homes that are assessed as Tangible Personal Property?
This new exemption does not apply to mobile homes assessed
as Tangible Personal Property.
Will I be required in future years to
file?
If
in subsequent years the taxable value on the Tangible Personal Property exceeds
the $25,000 exemption, then the property owner would be required to file a
return.
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