The Save Our Homes Act was initiated by Florida in 1995, its purpose to limit assessed property value to three percent or the Consumer Price Index change, whichever is lower. This act is only applied to property value, not property taxes.
So, how does this work?
Well, the exemption is removed at the end of the year if the property is sold. The Save Our Homes Act exemption will go into effect in the second year after applying. The tax due on your property is done by subtracting the assessed value to reach the taxable value. The taxable value is then multiplied by the Millage Rate which determines your taxes due.
When you buy a new home, this exemption is reset, meaning that the home is brought to current market value. The new owner will now have to apply for the exemption based on these numbers, rather than what the previous owner may have had.
Homeowners can transfer, or PORT their Home Assessment Difference (difference between assessed value and market value) from their previous homestead to another up to $500,000. Portability must be applied to, and applications close March 1 to be into effect that year. Be aware that as of 2020 this tax window has opened up to three years. So, if you sold your home in 2021, your exemption should remain with the property until December 31, 2021. After this, you have three years to qualify for a new homestead exemption and PORT the Save Our Homes Act to your new homestead.