In 1994 the State of Florida established a 3% Save Our Homes Cap (SOH) assessment limit on all residential properties that receive a homestead exemption. The 3% SOH Cap limits any increase to the assessed value of a homestead exempt property for tax purposes to a maximum of 3% each year or the amount of the change in the Consumer Price Index, whichever is lower.
Properties are assessed at the Fair Market Value when a change of ownership occurs and in the first year it receives the homestead exemption. Once the exemption is applied for, the cap or base year is established, each year thereafter, the SOH cap applies. The 3% SOH Cap remains in effect as long as the property is homestead exempt or until the property is sold.
When the Fair Market Value of a property assessed under the 3% SOH Cap drops below the 3% value the property is assessed at the lower of the two.
The Taxable Value for a homestead exempt property is the assessed value minus the amount of the exemption or exemptions granted the property owner.
For more information, please call Exemption Services at 561.355.2866.