THE AMENDMENT 10 "SAVE OUR HOMES" CAP
WHAT IS THE NEW LAW?
Section 193.155(1) of the Florida Statutes
was enacted to limit annual increases in
property tax assessments on property
qualifying for and receiving homestead
exemption.
WHAT PROPERTY IS AFFECTED?
Only homestead property that remains under
the same ownership qualifies for the cap.
WHAT PROPERTY IS NOT
AFFECTED?
Homestead property that has been sold and
non-homestead property (e.g. residences
without homestead, vacant land, commercial
property, agricultural property, and tangible
personal property) are NOT subject to the
cap.
ARE THERE ANY PORTIONS OF
HOMESTEAD PROPERTY THAT ARE
NOT SUBJECT TO THE NEW CAP?
YES. The value of physical alterations such
as changes, additions or improvements (not
including normal maintenance) will be
added to the assessment at full market value
AFTER the cap has been applied to the
qualifying homestead property.
WHAT ABOUT PARCELS NOW
RECEIVING A PARTIAL HOMESTEAD
EXEMPTION?
Only that portion of the property that
receives homestead exemption will be
affected by the cap.
HOW IS THE NEW LAW APPLIED?
The law provides that property receiving the
homestead exemption shall be assessed at
just value the year in which the property
receives the exemption. In the year
following, the property will be reassessed
annually with any change resulting from the
reassessment to not exceed the lower of
either: 1) three percent of the assessed value
of the property for the prior year; or, 2) the
percentage change in the Consumer Price
Index.
IS IT POSSIBLE THAT QUALIFYING
HOMESTEAD PROPERTY MAY
STILL RISE ABOVE THE CAP FROM
ONE YEAR TO THE NEXT?
Although the ASSESSMENT VALUE is
limited to not exceed the new cap, it is
possible that the TAXABLE VALUE may
rise above the cap percentage after
exemptions are deducted.
EXAMPLES
The following examples may clarify the
meaning of Amendment 10 in its application
to your parcel. The new assessment figure is
stated BEFORE the subtraction of
appropriate exemption amounts. For the
sake of clarity, 3% is always used as the
Amendment 10 cap in these examples.
EXAMPLE 1
Prior year assessment - $100,000
Homestead - 100 %
Market changes - 5% (i.e. $5,000)
Physical changes - None
Is 5% > 3% ? Yes, so Amendment 10 cap to
be applied will be 3%.
New assessment = $100,000 + $3,000 (i.e.
3% of 100,000)
NEW ASSESSMENT = $103,000
EXAMPLE 2
Prior year assessment - $100,000
Homestead - 100%
Market changes - 8% (i.e. $8,000)
Physical changes - $1,500 fireplace added
Is 8% > 3% ? Yes, so Amendment 10 cap to
be applied will be 3%.
New assessment = $100,000 + $3,000 (i.e.
3% of 100,000) + $1,500
NEW ASSESSMENT = $104,500
EXAMPLE 3
Prior year assessment - $100,000
Homestead - 50%
Market changes - 10% (i.e. $10,000)
Physical changes - $9,000 in-ground pool
addition
Is 10% > 3% ? Yes, so Amendment 10 cap
to be applied will be 3%.
Homestead Portion
Homestead portion
($100,000 x 50%) = $ 50,000
Homestead market change
($100,000 x 50% x 3%) = $ 1,500
Non-Homestead Portion
Non-Homestead portion
($100,000 x 50%) = $ 50,000
Non-Homestead
market change
($10,000 x 50%) = $ 5,000
Physical Change
In-ground pool addition = $ 9,000
NEW ASSESSMENT = $115,500
NOTE: Physical changes are added to the
assessment at full market value.
EXAMPLE 4
Although the ASSESSMENT VALUE is
limited by the Amendment 10 cap to be no
greater than 3%, it is possible that the
TAXABLE VALUE (after deducting
appropriate exemptions) may increase at a
greater percentage.
Prior Year
Assessment $ 30,000
Less Homestead ($ 25,000)
Taxable amount $ 5,000
New Year
Assessment $ 30,900
Less Homestead ($ 25,000)
Taxable amount $ 5,900
ASSESSMENT INCREASE = 3%
TAXABLE VALUE INCREASE = 18%
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