Hidden Marital Asset? If you purchased your home several years ago with your spouse, most likely you have enjoyed the benefit of lower property taxes through the vehicle known as the “Save Our Homes Cap (SOH Cap)”. The Save Our Homes Cap limits increases in the annual assessment of a home to a maximum of 3% per year or the Consumer Price Index (CPI), whichever is less, regardless of the increase in market value. Prior to January 2008, homeowners lost this benefit if they sold and bought a new home. But through the introduction of Amendment 1, Florida voters amended the State constitution to provide for a transfer of a Homestead Assessment Difference from one property to another. It may be transferred to any property in Florida and is commonly referred to as “PORTABILITY” and defined as the difference between “the assessed value and the market value”. When deciding to sell, or perhaps if you are getting divorced, this “difference,” also known as “Portability” or “PORT”, can be transferred to your new Florida homesteaded property up to $500,000 based on ownership share. A couple who sells their jointly owned property may, prior to filing the portability application, designate shares of the homestead assessment difference to each other by filing a form with the Miami Dade County Property Appraiser’s office known as the “Designation of Ownership Shares of Abandoned Homestead”, form (DR-501TS). To qualify, the husband and wife must be married on the date that the jointly owned property is abandoned. Additionally, when either one establishes a new Homestead Exemption, they must have received a Homestead Exemption as of January 1 of any of the 3 immediately preceding years. For additional information and guidance, please refer to section 193.155 Florida Statutes. Transferring this “PORT” to the new homesteaded property is a great benefit to help lower property taxes. Here is a clip taken from https://www.miamidade.gov/pa/exemptions_portability.asp that demonstrates how to calculate your PORT whether upsizing or downsizing.
If you are thinking about buying or selling, I would be happy to assist you. Please call me at 305.903.8845. Christine Stiphany, BHHS EWM REALTY. May 2022.