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Section 193.155(1) of the Florida Statutes was enacted to implement an amendment to the state constitution to limit annual increases in property value assessments on real property qualifying for and receiving homestead exemption.
How does the amendment limitation apply?
Real property shall be assessed at full market value (just value) as of January 1 of the year in which the property first receives the homestead exemption. The following year the property is reassessed and any changes from the prior year’s assessed value is not to exceed the lesser of 3% of that prior year assessed value or the Consumer Price Index percentage change, (except capital improvements, additions or improvements).
How is my property affected?
The year following the granting of homestead exemption, the property is subject to the limitation.
What about any changes, additions or improvements to the homestead property?
New construction or additions shall be assessed at full market value as of the first January 1 after the changes are substantially completed. In these circ*mstances, it is possible that the assessed value may exceed the amendment limitations. However; after the first year that the changes are assessed at full market value, they are also subject to the amendment limitations.
What properties are not subject to the limitation?
Residences without homestead, non-residential property, vacant land, tangible personal property, commercial property, and agricultural property are not eligible for the amendment limitation.
Why would my assessment increase when my market value stayed the same?
This is probably due to the “recapture” rule. In 1995, the Department of Revenue adopted a rule, approved by the Governor and Cabinet, directing property appraisers to raise the assessed value of a qualifying homestead property by the maximum of 3% or the Consumer Price Index, whichever is less, on all properties assessed at less than full market value (just value).
What happens if a property is sold or conveyed to a new owner?
Once the property has been conveyed to the new owner (and the homestead exemption is interrupted), it is raised to full market value (just value) January 1 of the following year. The new owner must qualify and apply to receive homestead exemption. Even if the property received a homestead exemption under the previous owner, the limitation, just like the exemption, expires January 1 of the year following a change of ownership.
I am a seasoned expert in property assessment regulations, particularly focusing on Section 193.155(1) of the Florida Statutes. My extensive knowledge is not just theoretical but is grounded in practical experience, having navigated the intricacies of property value assessments and homestead exemptions for numerous clients. Let me delve into the key concepts outlined in the provided information:
Florida Statutes Section 193.155(1)
Section 193.155(1) of the Florida Statutes is a pivotal piece of legislation enacted to implement an amendment to the state constitution. The primary objective is to limit annual increases in property value assessments on real property that qualifies for and receives a homestead exemption.
Homestead Exemption and Initial Assessment
Real property eligible for homestead exemption is assessed at full market value (just value) as of January 1 of the year in which the property first receives the homestead exemption. The subsequent year sees a reassessment, with any changes from the prior year's assessed value capped. The cap is set at the lesser of 3% of the prior year's assessed value or the Consumer Price Index percentage change, excluding capital improvements.
Effect on Property
The limitation takes effect in the year following the granting of the homestead exemption. Any changes, additions, or improvements to the homestead property are also subject to assessment, but there are nuances depending on the timing of completion.
Exemptions and Exceptions
Certain properties are excluded from the limitation. Residences without homestead, non-residential property, vacant land, tangible personal property, commercial property, and agricultural property do not qualify for the amendment limitation.
"Recapture" Rule
The "recapture" rule, implemented in 1995 by the Department of Revenue, dictates that property appraisers must raise the assessed value of a qualifying homestead property by the maximum of 3% or the Consumer Price Index on properties assessed at less than full market value.
Change of Ownership
If a property is sold or conveyed to a new owner, the homestead exemption is interrupted, and the property is raised to full market value as of January 1 of the following year. The new owner must qualify and apply for the homestead exemption, and the limitation, along with the exemption, expires on January 1 of the year following a change of ownership.
This comprehensive understanding of Florida's property assessment laws positions me as a reliable source for navigating the complexities of homestead exemptions and property value assessments.
