There is an often forgotten benefit that is available to property owners and could save you thousands of dollars in property taxes. The benefit is portability, which is the ability to carry accrued property tax savings from one homestead residence to another.
“Everyone who is thinking about purchasing a larger home or downsizing to a smaller one should consider the potential tax savings portability may give them,” said Berkshire Hathaway HomeServices Florida Network Realty Vice President Kevin Waugaman. “Portability of homestead tax savings in Florida is designed to allow homeowners to move from one home to another without having their new property taxes deter the move.”
(Kevin Waugaman, Vice President Core Services)
Portability in Florida refers to the ability of a property owner to transfer some or all of the ‘Save Our Homes’ benefit on a previous homestead to a new established homestead. The law was passed as a constitutional amendment in January 2008. The ‘Save Our Homes’ benefit is the difference between the assessed value and the market value of an existing home. Homeowners can use the benefit to reduce the assessed value of their new home which in turn will lower the taxable value after the appropriate exemptions are applied. The portability benefit is limited to $500,000.
“The portability benefit was put into place back in 2008 because homeowners were being dissuaded from moving since the tax bill on their new home would be significantly more than what they currently paid,” said C. Dennis Luettich Jr., Associate Counsel, Gibraltar Title Services, LLC, a partner of Berkshire Hathaway HomeServices Florida Network Realty. “At the time, many homeowners stayed put and didn’t move for fear of paying taxes. Portability works for homeowners who either are purchasing a larger property or who are downsizing to a smaller property.”
(Dennis Luettich, Associate Counsel, Gibraltar Title Services, LLC)
Here is how it works: If the new home is more expensive than the previous home, the homeowner is permitted to “port” 100 percent of that benefit to the new home’s market value. If the new home is less expensive than the previous home, the homeowner is permitted to “port” a percentage of the benefit to the new home’s market value.
All Floridians who have had homestead on a Florida property are permitted to “port” their homestead to another property within two years of selling. Homeowners must submit a Portability form in addition to filing for the Homestead Exemption. If you sold and purchased a new property last year, it’s not too late. The deadline to file is March 1.
If you would like to find out how portability impacts your property, contact your local property appraiser’s office or the professionals at Berkshire Hathaway HomeServices Florida Network Realty. The real estate firm’s dedicated and knowledgeable Realtors can provide expert consultation and guidance.
Berkshire Hathaway HomeServices offers a core services approach, featuring a team of knowledgeable and valued partners to assist clients in every aspect of the transaction. Whether you are buying or selling, Berkshire Hathaway HomeServices Florida Network Realty can help you take advantage of the best opportunities in the market. For more information, visit FloridaNetworkRealty.com.
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