City of Pensacola Florida

Florida homes appreciated in value substantially during the years 2002–2006. Because the "Save Our Homes" (SOH) provision capped increases in taxable value by the lower of the consumer price index or three percent annually, many homeowners were greatly benefited by the provision. For example, a $400,000 home that appreciated in market value by 50 percent over a three-year period would worth $600,000 today. The assessed value, capped at a maximum of 3 percent annually would have gone up maybe by $36,000 to $436,000. The homeowner would have a benefit, therefore, of $164,000. Assuming a 25 mill tax rate, the tax savings from the benefit would be about $4,100 annually. If the homeowner moved the benefit was lost, so many owners were economically locked into their home. Portability eliminated that result.

Portability is available for homeowners who had homestead exemption on their old home after 2006 and who purchase a new homestead. If the new homestead is purchased during 2008, homeowners have until March 1, 2009, to apply for the 2009 homestead exemption and the transfer of the SOH benefit. In future years, home-owners can transfer their SOH benefit to a new home if they had the homestead exemption on the old home in either of the previous two years.

The maximum benefit a homeowner can transfer is $500,000. A person who moves to a more expensive home will transfer the dollar amount. A person moving to a less expensive home transfers the percentage value.

Each applicant for the transfer will have to complete Form DR-501T "Transfer of Homestead Assessment Difference" and submit it to the office of the property appraiser in the county where the new homestead is located.