Unlocking the Power of Portability and Homestead: Navigating Property Taxes and Unveiling Hidden Protections

Homestead Presentation

There are 3 benefits of Florida Homestead:

• Protection from judgment creditors
• The $50k deduction from the value
• A 3% cap on the increase in taxable value, Save Our Homes Constitutional Amendment 
  • This is where portability comes from
  • The cap can be less than 3% also, it can be the CPI if its less than 3%

3 elements to qualify for Florida Homestead protection

• Live there on January 1
• Primary residence 
• Apply before March 31

What defines primary residence and residency 

• Reside with the intent to permanently live there
• FL driver’s license, or if no license, evidence you relinquished your license
• FL vehicle registration 
• Voter ID card 
• Address on your US Tax Return
• Must be a US citizen or qualified permanent resident
• Where your employer is located (obviously thought up pre-covid)
• Declaration of domicile
• Address of school children attend 
• Bank statement addresses
• Utility bill addresses 

Can only have one primary home.

• Spouses can’t have separate primary homes
• You can’t have a primary in another state and Florida

There are a ton of other Homestead Exemptions besides the 3 above

• Older than 65 on limited income
• Widowed, blind, disabled
• Line of duty disabled first responder, or surviving spouse of same
• Disabled vet, or surviving spouse of the same

How is market value determined?

• Typically Market value is 85% of the purchase price 
• Appraiser assumes average condition, arm’s length
• Many realtors tell their clients the purchase price is the taxable value.  This is not the case.  
• The comps for the year the property is purchased shall be the measure of value.  
• Why 85%, so taxes are not paid on commissions and closing costs 
• Values are accessed as of Dec 31 on the year you apply 

Homestead Portability  

Basics

• Portability came into being in 2008, part of Save Our Homes Constitutional Amendment. 
• Portability is separate filing from the homestead.
• Some get it automatically, many do not.  I get the calls from the “don nots”.  
• Unlike homestead, there are no filing deadlines, a homeowner can apply at any time.  But, you can never get back missed portability from prior years.
• Applies to a move anywhere in the state.  
• Before you sell, make sure the market value is as high as possible.  This maximizes the amount that can be taken to the new property
• Best portability explainer I’ve found. Please note it’s for Pinellas County. https://www.pcpao.org/SOH.html
• Super easy to apply for.  Portability application form DR-501T  https://www.pbcgov.org/papa/pdf/HXAssessmentDiff.pdf 

“Apportionment”, the little-known secret