In September 1995, the Governor and Cabinet approved a rule directing property appraisers to raise the assessed value of a qualifying Homestead property by the maximum of 3% or the annual change in the Consumer Price Index, whichever is less, on all properties assessed at less than full market value whether or not that property's market value increased during that calendar year.
For example, a property's market value did not change. However, since its assessed value remains below market value, the Property Appraiser must increase the assessed value by the annual limit to bring its value closer to full market value.
|Roll Year||Market Value||Assessed Value With Cap||CPI from Prior Year or 3% Cap||Factor (%/100)||Assessed Value Change*||Assessed Value Change*|
|2007||$110,000||$103,000||3.0||0.030||$100,000 x 0.030 = $3,000||$3,000|
|2008||$110,000||$105,575||2.5||0.025||$103,000 x 0.025 = $2,575||$2,575|
|2009||$115,000||$108,742||3.0||0.030||$105,575 x 0.030 = $3,167||$3,167|
|2010||$125,000||$108,851||0.1||0.001||$108,742 x 0.001 = $109||$109|
|2011||$120,000||$111,790||2.7||0.027||$108,851 x 0.027 = $2,939||$2,939|
|2012||$125,000||$113,467||1.5||0.015||$111,790 x 0.015 = $1,677||$1,677|
|2013||$135,000||$116,871||3.0||0.030||$113,467 x 0.030 = $3,404||$3,404|
|2014||$160,000||$118,858||1.7||0.017||$116,871 x 0.017 = $1,987||$1,987|
In the preceding example, the Base Year will always be either the first year the program started (1994) or the first year that the Homestead exemption was filed and approved. The assessed value will always equal the market value in the base year since no caps have been applied yet. In the example above, the assessed value stayed at $100,000 in 2006 because there was no increase in market value from 2005. In 2008, since the market value increased, the Consumer Price Index (CPI) of 2.5% was applied, as it was lower than the Amendment 10 cap of 3%. In other words, applying a 2.5% increase to the previous year’s assessed value results in an increase in assessed value of $2,575 in this particular case. In the example, this same procedure has been applied for each calendar year thereafter to show how it works on a year-to-year basis with different CPIs. The assessed value is either full market value or less, and assessed value cannot exceed market value. This limitation applies until the Homestead property is sold and the market value becomes the assessed value in a new base year, at which time the process starts over.
The application deadline for transferring your Save Our Homes cap is March 1st.
You will apply for Portability when you apply for Homestead Exemption by using form DR-501T (Transfer of Homestead Assessment Difference). This application is required in addition to the Homestead Exemption application.
Once completed please submit the form to our office in person or by mail. If you mail the application, be sure to make a copy of the application for your records, and send the form Certified Mail - Return Receipt Requested.
If you are porting your savings from another county to Brevard, please advise us of this. Your application form will be sent to the Property Appraiser's office in the county where your prior Homestead was located for verification and qualification. Your prior Property Appraiser will issue a Certificate of Portability form DR-501RVSH and return the form to our office for processing.
EXAMPLE 1: When moving to a home with equal or higher market value than your prior home, the statute allows for the following:
" . . . the assessed value of the new Homestead shall be the just [market] value of the new Homestead minus an amount equal to the lesser of $500,000 or the difference between the just [market] value and assessed value of the immediate prior Homestead . . ."
If your new home's market value is higher than your previous home's market value:
EXAMPLE 2: When moving to a home with a lower market value than your prior Homestead, the statute allows for the following:
" . . . the assessed value of the new Homestead shall be equal to the just [market] value of the new Homestead divided by the just [market] value of the immediate prior Homestead and multiplied by the assessed value of the immediate prior Homestead . . ."
If your new home's market value is lower than your previous home's market value:
In both examples above, the portable cap is less than $500,000, so no further adjustment required.