Gibraltar Title Services: Everything You Need to Know About Homestead Exemptions (Florida, 2021)

EVERYTHING you need to know about

GTS

GIBRALTAR TITLE SERVICES, LLC

HOMESTEAD EXEMPTIONS

Gibraltar Title Services, LLC / 4190 Belfort Road, Suite 475, Jacksonville, FL 32216 / 904.296.3100

PROPERTY TAX SAVINGS Ad valorem taxation is a tax based on the value of your property and is governed by Florida Law. These taxes are levied by cities, counties, school districts, and independent special districts and are used to support government and public services. In order to determine how much tax is owed you need to know (1) the taxable value of the property, and (2) the millage rate charged by the applicable local government.

Taxable value is defined as the market value of the property less any limitation or exemption available through the local government. Millage Rate is effectively the property tax rate and is set by local governments every year during their budgeting process. A mill is defined as $1 per $1000 of property value. As a result, a millage rate of 15 mills would mean you would pay $1500 per $100,000 of a property’s taxable value. This article will discuss the property exemptions and limitations available which Floridians can use to lower their taxable value.

PROPERTY TAX EXEMPTIONS The first Florida Homestead Exemption passed into law in 1934 as a direct response to the economic damage caused by The Great Depression. Many Florida homeowners were in serious danger of losing their homes because they found themselves unable to pay their property taxes. In response, State Representative Dwight Rogers of Fort Lauderdale proposed, and successfully passed, legislation to place the $5,000 Homestead Exemption Amendment on the state ballot and, in 1934, Florida’s voters overwhelmingly approved the Homestead Exemption Amendment.

Florida Homestead Exemption ($50,000): Since then, the Florida Homestead Exemption has been increased at least three times in order to better meet the needs of Florida homeowners. All legal Florida residents are eligible for a Homestead Exemption on their homes, condominiums, co-op apartments and certain mobile home lots. The exemption removes $25,000 off the assessed value of an owner-occupied residence and could provide up to another $25,000 additional exemption off assessed value over $50,000. Homeowners are entitled to a Homestead Exemption if, as of January 1, they have made the property their permanent home or the permanent home of a person who is legally or naturally dependent on them. To be eligible for a homestead exemption, a homeowner must own and occupy their home as their permanent residence on January 1.

The Homestead Exemption does not automatically transfer to a new residence if the homeowner moves. In accordance with State law, a new application is required if the homeowner moves, or if they change title on the deed in any way, including deeding the property into a trust.

Chapter 196, Florida Statutes, specifies that when homestead property is sold or there is a change in title to homestead property, a new application is required regardless of the reason (divorce, transfers to avoid probate, transfers to trusts, etc.). Furthermore, property transfers to family members in order to avoid probate of an estate may result in loss of all or part of the homestead exemption. Consultation with an attorney is recommended prior to proceeding with these types of changes.

To ease the burden on taxpayers, the local property appraiser automatically renews homestead exemptions. If there have been no changes to the property or changes in ownership or use and the homesteaded property is still the primary residence, then the Homestead Exemption will be automatically renewed each year on January 1st. In January, the homeowner will be mailed a renewal card identifying the property and owner possessing the exemption. Homeowners are encouraged to keep the card as their receipt.

The Homestead Exemption does not transfer from property to property. If the homeowner had the exemption last year on another property and moved, then they must file a new application for the new residence. They must also notify the property appraiser to cancel the exemptions on their former home. Property purchased during last year may show qualified exemptions of the seller. The sellers’ exemptions will not carry over to the next year and the new homeowner must apply for their own exemptions.

Blindness Exemption ($500): Every Florida resident who is blind qualifies for this exemption. If claiming exemption based on blindness, then a certificate, from the Division of Blind Services of the Department of Education or the United States Department of Veterans Affairs certifying the applicant to be blind, is required. ‘Blind person’ is defined as an individual having 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.

Deployed Servicemembers: Servicemembers who were deployed during the preceding calendar year on active duty outside of the continental U.S., Alaska, or Hawaii in support of a qualified military operation may be eligible to receive an additional exemption based on the number of days deployed.

Disability Exemption ($500): Florida residents who are totally and permanently disabled may qualify for this exemption. A certificate from a licensed Florida physician or a certificate from the United States Department of Veterans Affairs is needed to claim this exemption.

Disabled Exemption for First Responder and Their Surviving Spouse (100%): Any real estate that is owned and used as a homestead by a person who has a total and permanent disability as a result of an injury or injuries sustained in the line of duty while serving as a first responder in this state, or during an operation in another state or country authorized by this state, or a political subdivision of this state is exempt from taxation if the first responder is a permanent resident of this state on January 1 of the year for which the exemption is being claimed.

Disabled Veterans Exemption ($5,000): Any ex-service member disabled at least 10% in war or by service-connected misfortune is entitled to a $5,000 exemption. A certificate from the U.S. Government or U.S. Department of Veterans Affairs confirming the disability will be needed to claim this exemption.

“Granny Flat” Exemption: Property owners who construct or reconstruct their property for the purpose of providing living quarters for one or more natural or adoptive parents or grandparents may be eligible for a reduction in their property’s assessed value based on the increase in value due to the construction. To qualify for this reduction, at least one of the parents or grandparents must be 62 years of age or older. The reduction may not exceed the lesser of: (1) the increase in assessed value resulting from construction or reconstruction or (2) twenty percent (20%) of the total assessed value of the property as improved. This reduction requires annual approval and is not applicable if the parent or grandparent no longer lives on the property.

Seniors Combat Related Disabled Veterans: Veterans who are 65 or older as of January 1, were honorably discharged, and have a combat-related disability may apply for this exemption. The exemption is equal to the percentage of the veteran’s disability rating.

Senior Exemption: Florida residents that are 65 years of age or older, are legally in possession of and living on the homestead property as their primary residence as of January 1 of the year of application, and have a total household adjusted income less than the amount set by the Florida Department of Revenue may be eligible for this exemption. Residents who meet these criteria and who have owned and maintained their permanent residency on the homestead property for at least 25 years and have a just value of less than $250,000, may be eligible for additional benefits. (Note: Applies only to certain counties including Duval, St. Johns, Clay, Nassau, and Flagler) Service-Connected Total and Permanent Disability Exemption: Any honorably discharged veteran with service connected total and permanent disabilities is entitled to exemption on real estate used and owned as a homestead, less any portion thereof used for commercial purposes. Persons entitled to this exemption must have been a permanent resident of this state as of January 1st of the year of assessment. Under certain circumstances the benefit of this exemption can carry over to the veteran’s spouse in the event of their death.

Surviving Spouse of Military Veteran or First Responder Exemption (100%): Un-remarried surviving spouses of first responders who have died while in the line of duty may be exempt from taxation. In order to apply for this exemption, the surviving spouse and first responder must have been permanent residents of the state of Florida on January 1st of the year the first responder died.

Widow/Widower Exemption ($500): Any widow/widower who is a permanent Florida resident may claim this exemption. If the widow/ widower remarries, she/he is no longer eligible. If the husband and wife were divorced before the death, the woman/man is not considered a widow/ widower. You must provide a photocopy of the spouse’s death certificate, newspaper clipping, or a memorial card.

PROPERTY TAX LIMITATIONS Save Our Homes Assessment Limitation: In 1992, the Florida Constitution was amended to limit the annual increases in the assessed value of property receiving the homestead exemption to 3% or the percentage change in the Consumer Price Index, whichever is lower. This assessment limitation is commonly referred to as the “Save Our Homes” or “SOH” Cap. Exceptions to that limitation include new additions or construction that escaped taxation in the past. Another exception would occur when a homestead property sells: the assessed value returns to fair market value in the year following the sale. That fair market value assessment then becomes the base value for “Save Our Homes” purpose for the new owner/homestead applicant. Florida property tax homestead exemption reduces the value of a home for assessment of property taxes by $50,000, so a home that was actually worth $100,000 would be taxed as though it was worth only $50,000. However, the second $25,000 of homestead coverage does not apply to the school portion of property taxes -- and only applies to the third $25,000 of a property’s total just value (i.e., that portion of a property’s value between $50,000 and $75,000).

Save Our Homes Portability Transfer: Florida voters overwhelmingly approved a new constitutional amendment in January 2008 which grants added tax relief to property owners. If a homeowner is moving from a previous Florida homestead to a new homestead in Florida, they may be able to transfer, or “port,” all or part of their homestead assessment difference. If they 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 much of the difference between assessed and market value (“Save Our Homes difference”) can be applied depends on how the value of your new home compared to the value of your old home. Portability provides for the transfer of accumulated Save Our Homes benefit (up to $500,000) to a new homestead.

To transfer the SOH benefit, the homeowner must establish a homestead exemption for the new home within three years of January 1 of the year that they abandoned the old homestead (not three years after the sale). The homeowner must file the Transfer of Homestead Assessment Difference (Form A) with the homestead exemption application before March 1.

HOW TO APPLY FOR EXEMPTIONS AND LIMITATIONS In order to qualify for the homestead exemption, the property owner must be a Florida resident and own and occupy the property as their permanent residence on January 1st of the year that they claim the exemption. They will also need to apply for the exemption with the county property appraiser

by March 1st of the year for which they are claiming the exemption. Using form DR-501 (Form B) supplied by the Florida Department of Revenue or the local property appraiser, the applicant will submit the completed form along with (1) Evidence of ownership (deed), (2) Evidence of permanent Florida residence (FL Driver’s License), (3) Social Security number, and (4) Additional documentation of occupancy (vehicle registration, voter registration, etc.).

Clay County: Applicants must file for all exemptions in person at the Property Appraiser’s office in either Green Cove Springs or Orange Park. More information can be found at www.ccpao.com Duval County: Homeowners can file either online at http://www.coj.net/departments/property-appraiser or in person at 231 E. Forsyth Street, Suite 260, Jacksonville, Florida 32202. Applications cannot be filed at any other office of the tax collector.

Flagler County: Property owners must file for all exemptions in person at the Property Appraiser’s office located at 1769 E. Moody Boulevard, Building 2 Suite 201, Bunnell, Florida 32110. More information can be found at http://flaglerpa.com Nassau County: Applicants can file either online at http://www.nassauflpa.com or in person at either the Yulee, Fernandina Beach, or Callahan offices.

St. Johns County: Homeowners can file either online at https://www.sjcpa.us or in person at 4030 Lewis Speedway, Suite 203 Saint Augustine, Florida 32084. Applications cannot be filed at any other office of the tax collector.

ORIGINAL APPLICATION FOR HOMESTEAD AND RELATED TAX EXEMPTIONS

DR-501 R. 01/21

Rule 12D-16.002, F.A.C. Page 1 of 4 Provisional

Permanent Florida residency required on January 1.

Application due to property appraiser by March 1.

County Select County

Tax Year

Parcel ID

I am applying for homestead exemption, $25,000 to $50,000

New

Do you claim residency in another county or state?

Yes

Applicant?

Change No

Applicant

Co-applicant?

Yes

No

Co-applicant/Spouse

Name *Social Security # Immigration # Date of birth % of ownership Date of permanent residency Marital status Homestead address

Single

Married

Divorced

Widowed Mailing address, if different

Parcel identification number or legal description Type of deed Recorded: Book

Phone

Date of deed Page

Date

or Instrument Number

Did any applicant receive or file for exemptions last year?

Yes

No

Previous address: Please provide as much information as possible. Your county property appraiser will make the final determination.

Proof of Residence

Applicant

Previous residency outside Florida and date terminated FL driver license or ID card number Evidence of relinquishing driver license from other state Florida vehicle tag number Florida voter registration number (if US citizen) Declaration of domicile, enter date Current employer Address on your last IRS return School location of dependent children Bank statement and checking account mailing address Proof of payment of utilities at homestead address

Yes

Co-applicant/Spouse

date

date

date

date

date

date

date

date

No

Yes

No

Name and address of any owners not residing on the property *Disclosure of your social security number is mandatory. It is required by section 196.011(1)(b), Florida Statutes. The social security number will be used to verify taxpayer identity and homestead exemption information submitted to property appraisers.

Continued on page 2

DR-501 Page 2 of 4 Provisional

In addition to homestead exemption, I am applying for the following benefits.

See page 3 for qualification and required documents.

By local ordinance only: Age 65 and older with limited income (amount determined by ordinance) Age 65 and older with limited income and permanent residency for 25 years or more $500 widowed

$500 blind

$500 totally and permanently disabled

Total and permanent disability - quadriplegic Certain total and permanent disabilities - limited income and hemiplegic, paraplegic, wheelchair required, or legally blind Disabled veteran discount, 65 or older which carries over to the surviving spouse Veteran disabled 10% or more Disabled veteran confined to wheelchair, service-connected Service-connected totally and permanently disabled veteran or surviving spouse If including proration of prior year tax on this parcel I am a veteran or surviving spouse who received an exemption for service-connected totally and permanently disabled veteran or surviving spouse under section 196.081, F.S., on another property for the previous tax year in this county or, if another county, list the address, county and parcel number.

Previous Previous County Select County Address Previous Parcel Number Surviving spouse of veteran who died while on active duty First responder totally and permanently disabled in the line of duty or surviving spouse Surviving spouse of first responder who died in the line of duty Other, specify: I authorize this agency to obtain information to determine my eligibility for the exemptions applied for. I qualify for these exemptions under Florida Statutes. I own the property above and it is my permanent residence or the permanent residence of my legal or natural dependent(s). (See s. 196.031, Florida Statutes.)

I understand that under section 196.131(2), F.S., any person who knowingly and willfully gives false information to claim homestead exemption is guilty of a misdemeanor of the first degree, punishable by imprisonment up to one year, a fine up to $5,000, or both.

I have read, or have had someone read to me, the contents of this form.

I certify all information on this form and any attachments is true, correct, and in effect on January 1 of this year.

Signature, applicant Date Signature, co-applicant Contact your local property appraiser if you have questions about your exemption.

File the signed application for exemption with the county property appraiser.

Signature, property appraiser or deputy

Date

Entered by

Date

Date

Penalties

The property appraiser has a duty to put a tax lien on your property if you received a homestead exemption during the past 10 years that you were not entitled to. The property appraiser will notify you that taxes with penalties and interest are due. You will have 30 days to pay before a lien is recorded. If this was not an error by the property appraiser, you will be subject to a penalty of 50 percent of the unpaid taxes and 15 percent interest each year (see s. 196.011(9)(a), F.S.). For special requirements for estates probated or administered outside Florida, see s. 196.161(1), F.S. The information in this application will be given to the Department of Revenue. Under s. 196.121, F.S., the Department and property appraisers can give this information to any state where the applicant has resided.

Social security numbers will remain confidential under s.193.114(5), F.S.

EXEMPTION AND DISCOUNT REQUIREMENTS

DR-501 Page 3 of 4 Provisional

Homestead Every person who owns real property in Florida on January 1, makes the property his or her permanent residence or the permanent residence of a legal or natural dependent, and files an application may receive a property tax exemption up to $50,000. The first $25,000 applies to all property taxes. The added $25,000 applies to assessed value over $50,000 and only to non-school taxes.

Your local property appraiser will determine whether you are eligible. The appraiser may consider information such as the items requested on the bottom of page 1.

Save our Homes (SOH) Beginning the year after you receive homestead exemption, the assessment on your home cannot increase by more than the lesser of the change in the Consumer Price Index or 3 percent each year, no matter how much the just value increases. If you have moved from one Florida homestead to another within the last three years, you may be eligible to take some of your SOH savings with you. See your property appraiser for more information.

This page does not contain all the requirements that determine your eligibility for an exemption.

Consult your local property appraiser and Chapter 196, Florida Statutes, for details.

Added Benefits Available for Qualified Homestead Properties Amount

Exemptions Local option, age 65 and older

Widowed Blind

Determined by local ordinance

Qualifications Local ordinance, limited income

Forms and Documents* Proof of age DR-501SC, household income

Local ordinance, just value The amount of the under $250,000, permanent DR-501SC, household income assessed value residency for 25 years or more. $500 Death certificate of spouse $500 $500

Florida physician, DVA*, or SSA**

Statute

196.075

196.202 196.202

Disabled

Florida physician, DVA*, or SSA**

196.202

All taxes

Quadriplegic

2 Florida physicians or DVA*

196.101

All taxes

Hemiplegic, paraplegic, wheelchair required for mobility, or legally blind Limited income

DR-416, DR-416B, or letters from 2 FL physicians (For the legally blind, one can be an optometrist.)

Letter from DVA*, and DR-501A, household income

196.101

Totally and Permanently Disabled

Veterans and First Responders Exemptions and Discount Disabled veteran discount, age 65 and older which carries over to the surviving spouse

% of disability

Combat-related disability

Proof of age, DR-501DV Proof of disability, DVA*, or US government

196.082

Veteran, disabled 10% or more by misfortune or during wartime service

Up to $5,000

Veteran or surviving spouse

Proof of disability, DVA*, or US government

196.24

All taxes

Veteran or surviving spouse

Proof of disability, DVA*, or US government

196.091

Veteran confined to wheelchair, service-connected, totally disabled Service-connected, totally and permanently disabled veteran or surviving spouse

All taxes

Veteran or surviving spouse

Proof of disability, DVA*, or US government

196.081

Surviving spouse of veteran who died while on active duty

All taxes

Surviving spouse

Letter attesting to the veteran’s death while on active duty

196.081

First responder totally and permanently disabled in the line of duty or surviving spouse

All Taxes

First responder or surviving spouse

Proof of Disability, employer certificate, physician’s certificate and SSA** (or additional physician certificate)

196.102

Surviving spouse of first responder who died in the line of duty

All taxes

Surviving spouse

Letter attesting to the first responder’s death in the line of duty

196.081

*DVA is the US Department of Veterans Affairs or its predecessor. **SSA is the Social Security Administration.

DR-501 Page 4 of 4 Provisional

References

This form mentions the following documents, which are incorporated by reference in Rule 12D-16.002, F.A.C. The forms may be available on your county property appraiser’s website or the Department of Revenue’s website at http://floridarevenue.com/property/Pages/Forms.aspx.

Form

Form Title

DR-416

Physician’s Certification of Total and Permanent Disability

DR-416B

Optometrist’s Certification of Total and Permanent Disability

DR-501A

Statement of Gross Income

DR-501DV

Application and Return for Homestead Tax Discount, Veterans Age 65 and Older with a Combat-Related Disability and Surviving Spouse

DR-501SC

Adjusted Gross Household Income, Sworn Statement and Return