Save Our Homes, also known as the 3% Cap
Q. What does the 3% cap mean to Florida residents?
A.The cap limits the increase in the annual assessment of homesteaded properties in Florida to 3%, or to the percentage change in the Consumer Price Index, whichever is less.
Q. Who qualifies for this benefit?
A. You must own and live in a residential property that already qualifies for Florida’s Homestead Exemption benefit. Approximately 50% of residential properties in Palm Beach County do not qualify for Homestead Exemption and are not entitled to the 3% assessment cap.
Q. Does the 3% cap limit property taxes?
A. No, it is a cap on the assessed value of a homesteaded property, not on the taxes paid. Florida also allows a 10% cap on non-homesteaded properties, such as second homes or Commercial properties.
Q. Does the 3% cap change the way property values are estimated by the Property Appraiser?
A. No, the responsibility of the Property Appraiser’s Office is to determine a property’s market value to annually produce a fair and equitable tax roll.
Q. What happens to the cap when I sell my homesteaded property and buy a new house?
A. The cap is removed and the value is increased to market value as of Jan. 1 of the following year. If the home you purchased was subject to the cap, the cap is removed and the value is increased to market value the following Jan. 1. In certain cases, a homesteaded property may benefit from Portability which allows you to transfer part of the 3% savings from your old homesteaded property to your new residence.
For more information, please call (561) 355-2866.
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