Exemptions

What is a Homestead Exemption? 

There are a number of state and local laws providing exemptions that can result in a lower taxable value on certain properties. The homestead exemption is the most common and can provide up to $50,000 off the assessed value of a property used as the owner’s primary residence. This includes an initial $25,000 exemption and an additional exemption (up to $25,000) off the assessed value over $50,000. The additional $25,000 exemption does not apply to the school tax levy, and does not require an application.

Another benefit of the homestead exemption is the establishment of the “Save Our Homes” cap on annual increases in the assessed value. The assessed value of homesteaded property cannot increase more than 3% each year unless there are changes made to the property or the homestead removed.

What is the additional $25,000 Homestead Exemption?

As mentioned above, Property Owners who qualify for the $25,000 homestead exemption also qualify for the additional $25,000 exemption. The additional $25,000 exemption applies to properties with assessed values greater than $50,000. For example:

• If you have a homestead exemption on a parcel that has an assessed value of $67,455 then you would receive a homestead exemption amount of $25,000 and an additional homestead exemption amount of $17,455.
• If you have a homestead exemption on a parcel that has an assessed value of $204,429 then you would receive a homestead exemption amount of $25,000 and an additional homestead exemption amount of $25,000.
• If you have a homestead exemption on a parcel that has an assessed value of $44,885 then you would receive a homestead exemption amount of $25,000 and the additional homestead exemption would not apply.

Can I receive a homestead exemption on a mobile home?

Yes, if you own both the land and the mobile home and they are titled identically. You must declare your mobile home to be a permanent structure, and you make a one-time purchase of an RP tag for your home. Once you meet these requirements, your home will be included on the real estate tax roll and no further license tag fee will be required.

Do I qualify for the Homestead Exemption?

You are entitled to a Homestead Exemption if, as of January 1:

• You have legal title to the home (If filing for a Trust, provide a copy of the Trust document);
• You have established Monroe County as your legal domicile;
• You reside on the property; and
• You are a US Citizen or Permanent Resident

What documents do I need to apply?

Each applicant may consider bringing the following documents/information to establish ownership and residency in Monroe County.

a. Deed as recorded in the Official Records of Monroe County
b. Florida driver’s license or Identification Card reflecting the property address
c. Vehicle registration reflecting the property address
d. Social Security Number
e. You will need to supply proof that you or your spouse are not receiving any residency based exemptions on any other properties owned
f. Address of any co-owner(s) not residing on the property
g. Mobile home owners must bring the title(s) or registration(s) for the mobile home and deed to the real estate
h. Voter Registration Card or Declaration of Domicile. If in possession of a U.S. Permanent Resident Alien Card, you must also file a Declaration of Domicile

(** Note: These documents must be dated prior to January 1 of the year in which you plan to file.)

We will also need the address on your last income tax return; the name of your current employer; the date of each owner’s permanent Florida residence; the date of occupancy, and information about exemptions filed last year.

In some circumstances, we may also request:

a. Proof of payment for utilities at the property
b. Name and address of banking institutions
c. Evidence of the location where your dependent children are registered for school

Do I have to be a citizen to qualify?

Citizenship is not required to file for homestead exemption. An applicant who is not a U.S. citizen must present a Permanent Resident Card when they apply.

What is the deadline to file for exemptions?

All exemption and classification applications are due by March 1st for the following Tax Roll year. Applications received after the deadline will be considered as “pre-files” for the subsequent Tax Roll Year.

Where do I apply?

You can apply at any of our three offices. Since original signatures are required, we cannot accept faxed or e-mailed applications.

Do I need to re-apply for my Homestead Exemption every year?

If there is NO change of residency or ownership on the property which is currently receiving exemptions, this office will automatically renew the exemptions for the upcoming year. However, the homeowner has a responsibility under the law to notify the Property Appraiser if the ownership status of the property has changed or if it is no longer the permanent residence of the owner.

Can I rent my home and still keep the homestead exemption on it?

Generally, No Florida Statute 196.061 states the rental of all or substantially all of a dwelling previously claimed to be a homestead for tax purposes shall constitute the abandonment of such dwelling as a homestead, and the abandonment continues until the dwelling is physically occupied by the owner. However, such abandonment of the homestead after January 1 of any year does not affect the homestead exemption for tax purposes for that particular year unless the property is rented for more than 30 days per calendar year for 2 consecutive years.

This section does not apply to a member of the Armed Forces of the United States whose service is the result of a mandatory obligation imposed by the federal Selective Service Act or who volunteers for service as a member of the Armed Forces of the United States. Moreover, valid military orders transferring such member are sufficient to maintain permanent residence for the purpose of s. 196.015 for the member and his or her spouse.

Will I lose my homestead exemption and Save Our Homes assessment limitation if:

• I put my home in a life estate for me with a remainder to my children? No. Both your Homestead Exemption and any existing Save Our Home value will remain intact if you transfer a future interest to your children and retain a life estate for yourself. Please note that upon your death, any exemptions you may have obtained will expire and the property will be reassessed the following year. Any persons as remainder heirs would need to apply for and qualify for a new homestead exemption in order to receive the benefit of the exemption
• I put my home in a trust? No. Both your Homestead Exemption and any existing Save Our Home value will remain intact if, after placing the property in a trust, you are entitled to the use and occupancy of such property under the terms of the trust. Once your property is placed in a trust, please submit to the Property Appraiser’s Office a copy of the trust so that we may ensure you remain qualified to receive the benefit of the Homestead Exemption. (Ref. 196.041, F.S.)
• I give title to my spouse? No. Both your Homestead Exemption and any existing Save Our Home value will remain intact if title is changed or transferred between you and your spouse, including a change or transfer to a surviving spouse or a transfer due to a dissolution of marriage.
• I add someone to the title on my property? No. Both your Homestead Exemption and any existing Save Our Home value will remain intact as long as you remain on title and the person who is added to title does not apply for a Homestead Exemption.

What happens if I make improvements to my home?

Additions or improvements are valued at market value as of the first of January after the changes, additions, or improvements are substantially completed. In future years, annual increases will be capped as part of the “Save Our Homes” law.

What are the qualifications for the Senior Exemption?

• Applicant must have homestead exemption
• Be 65 or older as of January 1
• And the Adjusted Gross Income for all persons living in the house (even those not an owner) must be less than statutory limits

Applications for DR-501SC are due by March 1st.

What are the qualifications for the widow/widower exemption?

• Any widow/widower who is a permanent Florida resident may claim this exemption.
• The widow/widower must be an un-remarried spouse as of January 1.
• This exemption does not require the applicant to have a homestead exemption.

To claim the widow/widower exemption you must file a DR-501 application by March 1st.

What are the qualifications for a veteran disability exemption?

There are three types of veteran disability exemptions available:

• $5,000 veteran disability exemption: have homestead exemption and have a ‘service connected disability’ of at least 10% (VA Letter 27-125)
• Total & Permanent veteran disability exemption: have homestead exemption and have a ‘Total & Permanent Service Connected Disability’ (VA Letter 27-333)
• Combat disable veterans: have homestead exemption, have a Combat related disability, be 65 or older as of January 1

What are the qualifications for the $500 civilian disability exemption?

• Every Florida resident who is permanently disabled is eligible for this exemption.
• This exemption does not require the applicant to have a homestead exemption.

To apply, the applicant must complete the DR-501 form and one of the following doctor certificates completed by a Florida physician:

• Physician’s Certification of Total and Permanent Disability (DR-416) (Civilian $500)
• Doctor’s Certificates (DR-416) (Civilian only)

What are the qualifications for the $500 blind disability exemption?

• Every Florida resident who is blind may qualify for this exemption.
• The legal blindness standard is: “Central vision acuity 20/200 or less in the better eye with correcting glasses, or a disqualifying field defect in which the peripheral field has contracted to such an extent that the widest diameter or visual field subtends an angular distance no greater than twenty degrees.”
• This condition needs to be certified by a physician licensed to practice in Florida.
• This exemption does not require the applicant to have a homestead exemption.

To apply, the applicant must complete the DR-501 form and one of the following doctor certificates completed by a Florida physician:

• Physician’s Certification of Total and Permanent Disability (DR-416) (Civilian $500)
• Doctor’s Certificates (DR-416) (Civilian only)

What are the qualifications for the Civilian Total & Permanent Disability Exemption (paraplegic, hemiplegic, permanently confined to a wheelchair for mobility)?

A Florida resident who has been certified by two Florida licensed physicians, as being paraplegic, hemiplegic, legally blind or who uses a wheelchair for mobility, can qualify to have his/her homesteaded residence exempted from ad valorem taxes.

Applicants for the Civilian Total and Permanent Disability Exemption must meet income guidelines. The gross income of all the persons residing in the home in the year prior to application must not exceed statutory limits. These income limits are outlined in the law.

To apply, the applicant must complete the DR-501 and two Florida physicians who are not professionally affiliated, must complete one of the following certificates:

• Physician’s Certification of Total and Permanent Disability (DR-416) (Civilian $500)
  Doctor’s Certificates (DR-416) (Civilian only)
  Statement of Gross Income (DR-501A)

Can I file a late application for Homestead and other exemptions?

You can file a late property tax exemption application starting after the March deadline until the expiration on your August Notice. You must also file a petition and pay $15 to the Value Adjustment Board.

Senior Exemption

What is the Senior Exemption?

The Senior Exemption is an additional $50,000 Homestead Exemption for Persons 65 and Older reduces the assessed value of your property and can result in significant tax savings. We urge you to apply for this exemption (or re-apply if you had the exemption last year) if you meet the following requirements:

• You are 65 years of age, or older, on January 1, 2013. (Proof of age required for new applicants.)
• You qualify for, and receive, the Florida Homestead Exemption
• The total adjusted gross income for all members of your household for calendar year 2012 does not exceed an amount to be determined by the Florida Department of Revenue. This income threshold is adjusted annually by the percentage change in the average cost-of-living index. This amount is usually established in mid-January. Last year, the total was $26,203.

Note: This Exemption does not automatically renew and you will be required to submit an annual sworn statement of household income to our office not later than March 1 of each year.

I’ve Never Received This Exemption Before – How Do I Apply?

If you have never received the Senior Exemption on your property in Monroe County, you must complete and submit the Sworn Statement of Adjusted Gross Income of Household and Return (Form DR-501SC) along with proof of your age and documentation supporting the income you stated on the Sworn Statement. The application must be submitted by March 1 of each year, however, you do have until May 1 to submit the income supporting documents.

There are different application requirements based on whether or not you file a Federal Income Tax Return (Form 1040 Series) as outlined below:

If this is your INITIAL Application for the Senior Exemption and you DO NOT file an IRS Return:

•  Complete Part A of Form DR-501SC, providing all of the information requested for each person residing in your homestead.
• Check the Box in Part B.
• List your current income on Part E on the back and submit a copy of your Social Security Statement (SSA-1099) and/or all other income documents such as Form 1099 for taxable interest, dividends, capital gains, pensions and annuities for each household member.
• Submit proof of your age. Items that will be accepted as Proof of Age: Certified Copy of Birth Certificate; Florida Driver’s  License or Florida Identification Card; US Passport; Marriage Certificate; or Permanent Resident Card
• Sign and date Form DR-501SC at the bottom of Page 1. Be sure to include a telephone number.

If this is your INITIAL Application for the Senior Exemption and you DO File an IRS Return:

• Complete Part A of Form DR-501SC, providing all of the information requested for each person residing in your homestead. Check the Box in Part C.
•  Submit a copy of your current Federal Income Tax Return(s) and wage and income statement(s) (W-2 form) for each person residing in your household.
• Submit proof of your age. Items that will be accepted as Proof of Age: Certified Copy of Birth Certificate; Florida Driver’s  License or Florida Identification Card; US Passport; Marriage Certificate; or Permanent Resident Card
• Sign and date Form DR-501SC at the bottom of Page 1. Be sure to include a telephone number.

What is Adjusted Gross Income?

In general, Adjusted Gross Income (AGI) includes every type of income that is required to be reported to the Internal Revenue Service (IRS). This typically does not include Social Security income, however, you should review your Federal Income Tax Return and look for the AGI line to determine the actual AGI you reported to the IRS.

How do I know my Adjusted Gross Income when I haven’t filed my return yet?

You have until June 1st to file a copy of your IRS 1040 with the Property Appraiser’s Office.

Can two homeowners who are seniors both apply?

Only one needs to apply, but all members of the household must include their income and social security numbers.

Do both (or all) owners on the property have to be 65 in order to receive the exemption?

Only one owner has to be 65 by January 1st.

I am 65 years of age and my income is less than the limit, but my daughter lives with me. Do I have to include her income? 

You must include the income for all the members of your household.

I’m going to be 65 years old on January 2nd. Do I qualify?

You must be 65 years of age on or before January 1st in order to qualify for the Senior Exemption.

Will I lose my widow’s or disability exemption after I receive the senior citizen exemption?

The senior citizen’s exemption is an additional exemption and is not related to the widow’s or disability exemption.

Save Our Homes

What is “Save Our Homes?”

In 1992, the voters of Florida approved Constitutional Amendment 10 which limits the increase in Assessed Value of a home which has been homesteaded. This is known as Save Our Homes (SOH)”. This first year the Save Our Homes limitation was applied occurred in 1995.

What is the Save Our Homes Cap?

After the first year a home receives a homestead exemption and the property appraiser assesses it at just (market) value, the assessment for each of the following years cannot increase more than three (3) percent or the percent change in the Consumer Price Index (CPI), whichever is less. This is called the “Save our Homes” (SOH) assessment limitation. The accumulated difference between the assessed value and the just (market) value is the SOH benefit or cap. (See section 193.155, Florida Statutes.)

How is the annual save our homes percentage rate calculated?

The Consumer Price Index or the CPI limit is determined by the Bureau of Labor Statistics of the U.S. Department of Labor each year.

What happens to my Save Our Homes cap if there is a change or transfer of ownership?

If a change in ownership occurs for a homestead property protected by the SOH cap, the property will lose the SOH benefit and will be subject to assessment at just value on the following January 1. Florida law defines a change of ownership as any sale, foreclosure, or transfer of legal title or beneficial title in equity to any person. (Section 193.155(3), F.S.)

Also, a loss or removal of homestead will trigger a reassessment and removal of the SOH benefit. To avoid any penalties, please notify your county property appraiser if your homestead status has changed. Some changes that will not trigger a reassessment are:

• a change or transfer between spouses
• certain transfers upon death
• certain transfers when the same persons are entitled to the homestead exemption both before and after the transfer

For all exceptions, see section 193.155, Florida Statutes.

When inheriting a family-owned property, can someone continue the Save Our Homes (SOH) limit?

The Save Our Homes limitation can only be transferred to another owner in the following instances (F.S. 193.155)

• Transfer between husbands and wives (including dissolution of marriage)
• Transfer to legal or natural dependents of the previous owner who held the exemption

Why did my taxes go up even though my Just (Market) Value went down?

This is likely due to the Recapture Rule. The “recapture rule,” as prescribed by Florida Law, may cause some taxable values to rise even when the overall market value went down from the previous year. Even if the value of your homes decreases, your Assessed Value may increase, but only by the SOH amount. As long as the yearly increase in your Assessed Value does not surpass the Just (Market) Value, your taxes may go up. Your Assessed Value will never be more than the just value of your home.

Non-Homestead 10% Cap

What is Non-Homestead?

Non-Homestead property refers to real property that is not eligible for a homestead exemption. It can be residential or non-residential.

What is the Non-Homestead Cap?

The Non-Homestead cap provides a method for limiting the assessed value increase of any real property that does not benefit from a homestead exemption.

How does the Non-Homestead Cap work?

Increases in real property assessed value are limited to no more than 10%, as compared to the previous year, regardless of the market value increase. However, the assessed value may increase up to 10% per year, even if the market value remains the same (commonly referred to as “recapture”); unlike Homesteaded property, which can only go up by 3% or the CPI, whichever is lower.

Note: The Non-Homestead 10% cap does not apply to the School Board portion of the millage. The School Board portion of the taxes is bases on 100% of the Just (Market) Value.

What happens to my Save Our Homes cap if there is a change or transfer of ownership?

The Assessed Value of a property can never be greater than the Just (Market) value.

Do you have to apply for Non-Homestead “exemption”?

The Non-Homestead cap is automatically applied to all Non-Homestead property by the Property Appraiser’s Office. There is no application to complete

When does Non-Homestead exemption reset?

There are two instances when this would apply:

• Non-homestead resets when there is a cumulative transfer of greater than 50% ownership since the property’s last reassessment or
• On non-residential type properties when there are improvements made to the property which contributes to 25 percent or greater to the overall just value. An improvement can either be a new building, building addition, renovation, extra-feature improvements or parcel join.

What happens when I have owned a property for many years as a Non-Homestead property and I decide to apply for the Homestead exemption?

When a property goes from a Non-Homestead Property to a Homestead property, the Non-Homestead cap will be lost. The year in which you apply for the Homestead exemption will become your new “base year” and the Assessed Value will reset to the current Just (Market) Value. The same will apply when a property goes from a Homestead property to a Non-Homestead property.

Portability

What is Portability?

In 2008, the voters of Florida established a mechanism which allows homeowners to “port” or transfer all or part of the homestead assessment difference they have gained since they established their homestead exemption. Save our Homes provided protection to homeowners from drastic fluctuations in the market by limiting the increase in the Assessed Value to 3% or the CPI, whichever is less. However, if the homeowner purchased a new home, this capped savings was lost. Amendment 1 solved this problem by allowing the transfer of this Save Our Homes benefit to another property purchased.

If you are eligible, portability allows most Florida homestead owners to transfer their SOH benefit from their old homestead to a new homestead, lowering the tax assessment and, consequently, the taxes for the new homestead.

How do I “qualify” for portability?

In order to qualify for portability in a given tax year, the homeowner must have received a homestead exemption on their previous homestead in one of the last two years.

How much of my Port Amount can I transfer?

Port is limited to a person’s ownership share and cannot exceed $500,000.

If your new home’s market value is higher than your old home’s market value, you may transfer the entire “Save our Homes” benefit (difference between the market and assessed values of your old home) to your new home up to $500,000. This amount would be subtracted from the market value of your new home to create a new assessed value.

If your new home’s market value is lower than your old home, you may transfer the benefit as a percentage (the difference as a percentage of the old market value) and apply that to your new home’s market value.

How long do I have to apply for Portability?

You have up to three years to transfer the previous assessment difference to a new homesteaded property.

• To transfer the SOH benefit, you must establish a homestead exemption for the new home within two years of January 1 of the year you abandoned the old homestead (not two years after the sale). For example: the previous homestead exemption is abandoned March 2015, the applicant must establish the new homestead exemption by January 1 of 2017.
• If the applicant is granted a homestead exemption, but does not apply for portability within two consecutive years, he/she may apply at a future date. The assessment difference (Save Our Homes Cap Savings), from the year in which the homestead exemption was abandoned, will be applied to the assessed value of the new homesteaded property in the year that the portability is first approved. However, property taxes will not be subject to refunds for previous years (Section 193.155 (8)(k), Florida Statues).

How do I get my portability?

You must file form DR- 501T for the Transfer of Homestead Assessment Difference (AKA Portability) with your homestead application. The deadline to file these forms is March 1.

What happens after I apply?

After receiving your application for portability, we will send it to the Property Appraiser in the county of your previous homestead if other than Monroe County. Then, your previous Property Appraiser will issue a “Certificate of Portability” (DR-501R) which will be mailed back to us. We then calculate your portability benefit and apply it to your new homesteaded property.

How will I know if I qualified for Portability?

If you do not qualify based on the DR-501R we receive from your previous Property Appraiser, we will notify you by July 1st of the applicable tax year. No formal notice is mailed if you qualify until the TRIM notice which will be sent to you in August.

Do I have to sell my property before I can qualify for Portability?

No. However, all the recipients of the homestead exemption must abandon the previous homestead exemption before the assessment limit is ported.

Do I have to purchase a new property to get the portability benefit?

No, if you already own another property (2nd home, beach house, etc.) you can abandon the homestead from the old property and apply for homestead and the portability benefit on the new property.

If I had a homestead exemption with other persons at my previous property can I Port my assessment difference?

Yes. However, all recipients of the homestead exemption of the previous property must abandon the previous homestead before the assessment limitation can be ported and the portability is distributed according to the ownership share of the previous property.

What happens when two people who previously owned separate homestead properties move in together and establish a new homestead?

If two people who each have their own homestead decide to acquire a new homestead together, the Property Appraiser will use whichever prior homestead would result in the highest cap differential, and thus the highest tax savings. However, once again, the cap differential may not exceed $500,000.

What happens when joint owners abandon homestead property and acquire new, separate homestead properties?

The cap differential they are allowed to port is calculated as described in the above situation. However, the cap differential is then divided by either the number of owners of the prior homestead or, in the case of property owned as tenants in common, by each owner’s proportionate interest in the prior homestead.

For example, if two joint owners would be allowed to port a $100,000 cap differential to the same new residence, if they move to separate new residences, they would each be permitted to port $50,000.

What happens if I get divorced?

Can I transfer my portability savings outside of Monroe County? 

Yes, you can port to any county within the state of Florida (same rules of upsize, downsize, split, and combine apply).

Can I “port” a savings from another state?

No, portability applies only if you had a State of Florida homestead exemption within the past 2 years.

Mailing Address Change

How do I change my mailing address?

You must fill out a Request for Mailing Address Change and return it to our office either in person or by mail. The form must be signed and dated in order for the change to be processed.

Taxes

How can I estimate my taxes?

Use the online Tax Estimator to estimate taxes.

How can I compare my taxes to last year’s taxes?

Your Notice of Proposed Property Taxes(TRIM Notice) lists last year’s taxes and current proposed taxes by each taxing authority.

How are my taxes calculated?

The Property Appraiser’s Office does not set taxes. The millage rates (also called tax rates) and taxes are determined by each of the taxing authorities such as Monroe County, the School Board, Municipalities and Regional authorities.

Valuation

What is “Just Value”?

It is another way of saying Market Value.

Why does my property value change every year?

One of the duties of the Property Appraiser is to determine the value of all properties as of January 1 each year. These values are based on market information such as sales and income data.

How did you determine the value of my property?

Each assessment year the Property Appraiser’s Office analyzes the sales and income data from the prior year to establish values. Nationally accepted valuation methods are utilized which are the sales comparison approach, the cost approach and income valuation. Mass appraisal techniques are used to apply the values to each property equitably.

My house is just like my neighbor’s, why are my taxes higher?

This is most likely due to the difference in benefits applied to each of the properties. Remember, taxes are paid on the Assessed Value of a property, and each year that Assessed Value can only rise 3% or the Consumer Price Index, whichever is lower. Therefore, it your neighbor has been homesteaded since 1994 and you have owned your home since 2005, the 1994 home will have been “locked in” at a lower starting Assessed Value than the home purchased in 2005.