TAX PORTABILITY

Amendment One, voted in Jan 2008, permits homeowners to transfer a tax savings when they buy a new property.

If the market value of your homestead property is greater than its assessed value, tax portability offers the possibility to transfer that difference in value to your new property under the following scenarios:

If the property you are moving to is more expensive 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.
Example: If the market value of your current homestead property is $400,000 and its assessed value is $250,000, the amount of cap savings you have (the difference between the market and assessed values) is $150,000. If your new property has a market value of say, $500,000, you can move the $150,000 cap savings to your new property when you file for your homestead exemption. With portability the assessed value drops to $350,000. Based on a tax rate of 20 mills, portability would give you a $3,000 ad valorem tax break on your new property.

Assessed value of the new homesteaded property = Number * Assessed value of current homesteaded property

Example:

Market value of your current homesteaded property – $400,000.00

Assessed value of current homesteaded property – $250,000.00

Market value of the new property – $500,000.00

Cap savings – 150,000.00

Calculation:

$400,000.00 - $250,000.00 = $150,000.00

$500,000.00 - $150,000.00 = $350,000.00 Assessed value of the new homesteaded property

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.
Example: If the market value of your current homestead property is $400,000 and its assessed value is $250,000, the amount of cap savings you have (the difference between the market and assessed values) is $150,000. If your new property has a market value of say $300,000, you can move a percentage of your cap to your new property when you file for your homestead exemption.
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. In the above example, the result would be $187,500. The market value of your new property, $300,000, is divided by the market value of your current homestead property, $400,000. The result is 0.75. You then take the assessed value of your current property, which is $250,000, and multiply that amount by .75. That will give you $187,500, which will be the assessed value for your new homestead property.
While this may sound confusing, it is really basic math and our computer systems are programmed to automatically handle the calculations. Our Portability Calculator is similar to the tax calculator already located on our Web site. The Portability Calculator will help you estimate your property tax savings should you think about moving and transferring your assessment cap.
There are no changes planned to the existing Save Our Homes assessment cap benefits. Portability is an added benefit

Market value of your current homesteaded property – Assessed value of current homesteaded property = Cap savings

Market value of the new property/ current homesteaded property=Number

Assessed value of the new homesteaded property = Number * Assessed value of current homesteaded property

Example:

Market value of your current homesteaded property – 400,000.00

Assessed value of current homesteaded property – 250,000.00

Market value of the new property – 300,000.00

Calculation:

300000/400000= .75

250000*.75 = 187,500 - Assessed value of the new homesteaded property