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AMENDMENT ONE

WHAT ARE THE BENEFITS OF SAVE OUR HOMES?

(PART 2)

The main benefit is it limits the increase of assessed value of homesteaded properties to a 3% cap per year.  This has been a valuable asset to all homesteaded owners since 1996.  It has protected homesteaders from the unprecedented market fluctuation in recent years.

WHAT WOULD AMENDMENT 1 DO FOR FLORIDA HOMESTEADED PROPERTY OWNERS?

It would allow homesteaded owners to carry their Save Our Homes cap  to their new homesteaded property (Portability).

Key points to remember:

·        It is retroactive for new 2008 homestead application. Allows portability of homestead exemption from 2007.

·        It allows up to $500,000 of cap to carry to new property

·        Portability is state wide.

If AMENDMENT 1 passes, “portability” provides for the transfer of accumulated Save-Our-Homes benefits.  Homestead property owners will be able to transfer their Save-Our-Homes benefits to a new homestead; except, if this revision is approved by the electors on January 29, 2008 and if the new homestead is established on January 1, 2008, the previous homestead must have been relinquished in 2007.   If the new homestead has a higher just value than the previous one, the accumulated benefit can be transferred; if the new homestead has a lower just value, the amount of benefit transferred will be reduced.  The transferred benefit may not exceed $500,000.  This provision applies to all taxes.

PORTABILITY - If the market value of your homestead property is greater than its assessed value, this proposal would permit you to transfer that difference in value to your new property under the following scenarios:

If the property you are moving to has a greater just value than the property you are moving from, you will be able to transfer your actual cap savings to your new property. The maximum amount of cap savings you can transfer is limited to $500,000.

If the property you are moving to is less expensive than the property you are moving from, you will be able to transfer a percentage of your actual cap savings to your new property.

The amount of cap savings you can take with you to your new property is determined by dividing the market value of your new property by the market value of your current homestead property. You then take that amount and multiply it by the assessed value of your current homestead property.

There are no changes planned to the existing Save Our Homes assessment cap benefits. Portability will be an added benefit.

Portability is applicable throughout the State of Florida.

It is effective back to January 1, 2007, and come January 2009, will be retroactive for up to two (2) years.

There are additional rules for portability when more than one person has established the homestead:

If two or more people own multiple homesteads and are moving into only one new homestead, they can only transfer a benefit from one of the former homesteads. So if a newly married couple is selling two former homesteads to move into one new homestead, they will choose to transfer whichever of their SOH benefits is largest. The size of the transferable benefit is capped at $500,000.

If two or more people jointly own a homestead and are moving into more than one new homestead, they must divide the value of their SOH benefit among the new homesteads based on the number of owners of the prior homestead. The total amount of transferable benefits is capped at $500,000. So, if a couple is moving out of their jointly owned homestead with a $100,000 SOH benefit into two new homesteads, they will divide the benefit in half and apply a $50,000 benefit to each of their new homesteads.