Florida Homestead, Portability & PCPAO
For those of you not fortunate enough to be Florida residents, 😊 we have homesteading which gives full-time residents a discount on property taxes for their primary residence. Florida residents are granted a $50,000 exemption from the property’s ASSESSED value. Some residents are given additional exemptions for statuses such as widow, senior, disabled and veteran. Homeowners must apply for homestead status which can be done online on the Pinellas County Property Appraiser’s Office (PCPAO) website. New homeowners must file for homestead by March 31. Filing can be done online.
Save Our Homes is a 1995 Florida Constitution amendment that limits annual increases on the assessed value of property with a homestead exemption to 3% or the change in the Consumer Price Index, whichever is lower. The CPI is usually lower.
Part of the Save Our Homes amendment allows homestead property owners to port (or transfer) the accumulated difference between assessed value and the just/market value. This allows the homestead value to be transferred to a new home. If a homeowner sells their homesteaded property, they have 2 tax years from January 1st of the last qualified homestead exemption (not from the sale date) to purchase a new home and port their exemption.
Sometimes new home buyers get a big shock after purchasing a home when they find out that the property tax on their new home is going way up. This can happen when the seller owned the home for a long time and was homesteaded. After the home is sold, the prior cap on the assessed value is lifted and the taxes are calculated for the new owner. This shouldn’t be a surprise. The PCPAO’s website has a page for entering a property and calculating what the new taxes may be.
For more information on Homestead, please refer to this document: https://www.pcpao.org/Homestead%20%26%20Other%20Personal%20Exemptions.pdf
My RE/MAX Metro office recently had the Pinellas Cty Property Appraiser, Mike Twitty speak at our monthly office meeting (which is currently a Zoom call). One of this things Mr. Twitty talked about is a new website that is about to be launched. If you are a homeowner and you haven’t looked up your property on the PCPAO website, I recommend that you do. On the site you can see permit history, sales history, tax information, a property layout, square footage and more. Mr. Twitty also shared the graph below which shows the trends in assessed value.