Save Our Homes Amendment
Pursuant to the 1992 "Save Our Homes" (SOH) Amendment to the Florida Constitution, the assessed value of your Homestead property can increase by no more than 3% above last year's assessed value (or the consumer price index, whichever is less). The Florida Department of Revenue certifies the annual percentage amount for each year.
To give you an example: if your Homestead property was assessed at $100,000 in last year, and its market value increased to $125,000 this year, your maximum assessment this year is $103,000. The 3% cap does not apply to the amount of taxes you pay, as the amount is based upon the millage (tax) rates set by your various taxing authorities including the School Board, County Commission, City Commission, hospital district, water management district, and other governmental entities. The Property Appraiser does not set any of your tax rates.
The only way your assessment can increase more than this is if there is a change in ownership, or you made physical improvements (build an addition, converted a garage into a new room, etc.) to your property that was not included in last year's assessment.
Important: Under Florida law, a homestead "recapture" rule may cause some taxable values to rise even when the overall market value dropped from last year. If you are Homesteaded and your "Save Our Homes" (SOH) value is less than the market value as of January 1, Florida Administrative Code Rule 12D-8.0062(5) explicitly orders our office to increase your overall assessed value each year (up to the 3% annual cap level) until it eventually reaches the same amount as the market value. The Florida Department of Revenue set this year's SOH cap rate at 1.5%. Roughly 71,000 Broward homeowners will see their taxable SOH values rise this year even though their market values dropped, due to this recapture law. The Florida Legislature has placed this issue on the November 2012 ballot as a constitutional amendment. If passed by voters next year, the amendment would allow the Legislature to change this law in 2013.