Assessment Caps

Florida provides tax savings benefits on assessed values of certain real properties. These are not caps on property taxes. Assessed value on residential property is the value placed on a homesteaded property before any exemptions are deducted but after the property tax cap is factored. Assessed value minus exemptions equals Taxable Value. Assessed value on non-homesteaded property, such as commercial or second homes, is the value placed on a property after a 10% cap is factored.

Q. What is the 3% Cap?
A. This cap applies to the assessed value of residential properties with a qualified Homestead Exemption. The annual increase is limited to no more than 3%, or the National Consumer Price Index, whichever is less. The assessment cap, also known as Save Our Homes, went into effect in 1995.

Q. Is there a similar cap for non-homesteaded properties?
A. Yes, The annual increase in the value of non-homesteaded properties, such as Commercial or second homes, cannot exceed 10%. The 10% cap went into effect in 2009. Unlike the 3% cap on homesteaded properties, the 10% cap on non-homesteaded properties is not tied to the National Consumer Price Index. The 10% cap on non-homesteaded property applies only to non-school tax levies.

Q. If my property’s market value goes down in any given year, does its assessed value also drop?
A. Yes, unless a property’s market value is greater than its assessed value. By law, property appraisers are required to increase the property’s assessed value by the 3% cap provision. Known as the “Recapture Rule,” the rule applies only to those homesteaded properties where their market value is greater than their assessed value in any given year.

Q. Do I have to apply for these assessment caps?
A. No, neither the 3% cap nor the 10% cap requires the property owner to apply for the tax savings benefit. Our office automatically calculates the caps on the qualified property.