The Amendment 10 cap on increases in assessed value on homestead property is governed by a separate statute. An owner must first qualify for the homestead tax exemption. There are circumstances in which an owner can remain eligible for the homestead tax exemption but lose the benefits of the cap.
F.S. §193.155 governs this benefit and provides rules for determining a change in ownership that can cause the loss of cap benefits. As a result of legislation in 2006, an owner can now add one or more persons to the title without losing the Amendment 10 cap, as long as they are both a grantor and a grantee in the instrument transferring ownership.
In other transactions, when there is a transfer of ownership, the cap remains if there is no change in beneficial ownership, such as a transfer from an individual to his or her revocable trust, a transfer is to the owner’s spouse or dependent. A transfer to the owner’s spouse or children at death is also exempt under art. X, §4 of the Constitution and F.S. §732.4015.13 The Save Our Homes Cap should also remain when the transfer is to correct an error in a prior deed, or the owner retains a life estate, giving only a remainder interest to the new owner (traditional life estates or Ladybird Deeds). The Save Our Homes Cap will be lost when one of two non spouse joint owners, both of whom have applied for and received the homestead exemption, is removed from title. The Save Our Homes Cap will also be lost when one of two unmarried joint owners dies, and both have received the homestead exemption, or the joint owner or life tenant who dies was the one who was eligible for the homestead exemption and the Save Our Homes Cap. Finally, the Save Our Homes Cap will apply only to the share of the owner or owners who reside in the home and qualify for the homestead exemption. The shares of those who do not qualify for the homestead exemption will be increased like any other non homestead property.
Save Our Homes Cap: Amendment 10
It is an assessment limitation, or “cap”, on increases in the assessed value of a homestead residence
What is the Save Our Homes Cap?
It is a benefit that provides homeowners protection by limiting the maximum that the assessed value of their home for tax purposes.
Who Does the Save Our Homes Cap Protect?
It can protect owners from being taxed out of their homes when the market is escalating.
What Does the Save Our Homes Cap Protect Owners From?
When there is a title change of a home with HEX. This can be when the home sells
When is Amendment 10 triggered?
First, the cap is removed from the Assessed Value. The Assessed value may increase. If the Assessed Value increased, then so does the Taxable Value. When this happens then the taxes of your home may increase.
What are then the steps when Amendment 10 is triggered?
You must first apply for HEX on or before the march 1 deadline of the next year.
What if you are a new owner and you don’t have HEX but want to receive HEX?
A base year is the first year an owner is granted homestead exemption.
What is a base year?
In the base year, the market value equals the assessed value.
How does the base year relate to the Assessed Value?