Homestead Exemption

Homestead exemption is a constitutional benefit of a $25,000 exemption from the property's assessed value. It is granted to those applicants with legal or beneficial title in equity to real property as recorded in official records who are bona fide Florida residents living in a dwelling and making it their permanent home on January 1 of the taxable year. The exemption results in approximately a $500 savings to Florida residents on their property tax.

When you purchase a home and want to qualify for an exemption, you must file your application in person at one of our offices. You may file anytime during the year, but before the state's deadline of March 1 for the tax year in which you wish to qualify. However, you are urged to file AS SOON AS POSSIBLE once you own, occupy and make that home your legal residence!

If you purchased your property after January 1, and your TRIM Notice reflects a homestead exemption, this is an exemption which was granted to the prior owner. This exemption ceases on December 31. If you wish to qualify for an exemption for the following year, you must file an original application in one of our offices by March 1.

If you received your homestead exemption for the previous year and still occupy, own, and make that residence your permanent home, a receipt will be mailed to you early in January. You need to notify the Property Appraiser's office if you no longer qualify for these exemptions or you wish additional exemptions.

YOU NO LONGER QUALIFY FOR YOUR EXEMPTION IF: Property granted an exemption is sold or otherwise disposed of, when ownership changes in any manner, when the applicant for homestead exemption ceases to use the property as his or her homestead, or when the status of the owner changes so as to change the exempt status of the property. 196.011 (9) (a) F.S.

• FILING DEADLINE IS MARCH 1st, 2007

If you missed this deadline, you are ineligible for Homestead Exemption for 2007, and you would have to apply for 2008 before March 1st, 2008 to be eligible for exemption for that year.

When a house is sold, the cap and exemption are removed at the end of the calendar year, and taxes are calculated on the full market value, also called the Just/Market Value.

The property will fall under the limitations of the Save Our Homes Cap the second (2nd) year of the new owner's Homestead Exemption. (Therefore, if a property owner applies for and receives Homestead Exemption for 2006, the Assessed Value will be capped in 2007).

To determine taxable value, any exemptions are subtracted from the Assessed Value to reach a Taxable Value, which is then multiplied by the yearly Millage Rate set by the taxing authorities to reach the amount of tax due.

Because a change in property ownership will effectively "reset" the Capped Value, it is important to be aware when purchasing a new home that is benefiting from the cap, it can be expected that property taxes will increase the next year because the assessed value must be adjusted to equal current market value.

The increase due to the removal of the Cap may double or even triple taxes, depending on how long the previous owner had homestead exemption. The table below illustrates this. (For example, if the Millage rate for this fictitious property was 23.000 mills, then the previous owner would have paid $736, whereas one year later the new owner would pay $1,725 - a substantial increase.)

How the Cap Works when a Property Sells:

	Previous Owner's CAP	1st Year of New SOH:	2nd Year of SOH:
Just/Value (Increases with Market):	$90,000	$100,000	$120,000
Assessed (Capped) Value:	$57,000*	$100,000	$103,000**
Less Exemptions:	-$25,000	- $25,000	- $ 25,000
Taxable Value	$32,000	$ 75,000	$ 78,000

*(For this example, the previous owner's Assessed Value has been capped for several years and is therefore significantly lower than the current Just/Market Value.)

**(For this example, Property is Capped at 3% , Cap Rate for 2006 - actual cap rate will vary yearly.)

If additions or improvements are made to the property, the value of those improvements will be added to the roll regardless of the cap. For example, if a pool is added to a property, the value can increase no more than the cap rate, plus the value of the pool. If we correct such items as size, number of bathroom fixtures, installation of heat and/or air conditioning, the value of those corrections will also be added to the roll above the cap.

To help you to clarify just what the taxes for a property will be, go to the Search Our Database page and find the property via owner's name, address or parcel number. The resulting page will display: 1) taxes the current homeowner is responsible for, 2) the amount taxes would be without the SOH cap, and 3) the amount taxes would be without an exemption. You can also call our Information Services Division at 727-464-3207 for this and other valuable information.

The fine print...

The cap remains in effect upon the change of title due to divorce or death of a spouse as long as the remaining owner continues to live on the property as their permanent address.

Frequently Asked Questions About Adding Owners to your Homestead Property

Will I Lose My Homestead Exemption if I add someone to my deed?

Adding names to the ownership of your home normally does not change your $25,000 Homestead Exemption, BUT you may lose all or part of the protection your property receives from the Save Our Homes (SOH) assessment limitation or "cap". The SOH cap keeps the assessed value of your home from increasing more than 3% per year as long as you maintain your Homestead Exemption. A loss of protection from the SOH cap will increase the amount of property taxes you pay.

Will I lose my Save Our Homes Cap if I add someone to my deed?

Maybe, depending on how you own the property (the "tenancy"), and if the new owner files for Homestead Exemption on your property. "Tenancy" is the term used to describe the way property is owned, the relationship between the owners, and what happens to the property when an owner dies. The most common forms of tenancy are: tenancy by the entireties, joint tenants with right of survivorship, and tenants in common. If two or more people own property with a homestead exemption, the type of tenancy that appears on the deed can have an effect on the "Save Our Homes" provision, and ultimately the amount of taxes that are owed.

If the new owner is your spouse, or someone who is legally or naturally dependent on you, he or she must apply for homestead exemption. Your current Save Our Homes cap will not be adjusted.

Joint Tenants with Right of Survivorship:

If the new owner is a joint tenant with right of survivorship, and he or she DOES NOT apply for Homestead Exemption, your SOH cap WILL NOT be adjusted.

If the new owner is a joint tenant with right of survivorship and DOES apply for Homestead Exemption, your SOH cap WILL be adjusted to market value and start anew the following year. In future years, the SOH Cap will protect 100% of the property.

One Important Note! If the new owner is living with you and intends to make the property his or her permanent residence, it may make more sense to apply for the new Homestead Exemption now rather than waiting until a later date. Your Homestead Exemption and SOH cap protects only you, and not the new owner. In the future if you no longer reside in this home, the new owner will have to apply at that time, and the property value and taxes will most certainly be much higher than they are now.

Tenants in Common

If the new owner is a tenant in common and DOES NOT apply for homestead exemption, your SOH cap WILL BE adjusted to protect only your proportionate or "percent" interest in the property. The "percent" interest of any owner who does not have homestead exemption will be assessed at market value each year.

If the new owner DOES apply for Homestead Exemption, your SOH cap WILL BE adjusted to market value and start anew the following year.

Can I "undo" or cancel a deed that is already recorded?

If the wording of your current deed has consequences that you did not intend, you may want to consider a corrective deed. Please consult an attorney, title company or other real estate professional to help you prepare your corrective deed. The Property Appraiser's office cannot advise you, since there are many serious considerations that go beyond how homestead exemption is calculated, including income and estate tax consequences. We recommend that you never attempt to change your deed without the help of a professional.

Are there other ways of transferring my property for estate planning that will not disturb my Homestead Exemption or SOH Cap?

Two methods of transferring your property will, in most cases, keep your Homestead Exemption and SOH intact: reserve a Life Estate for yourself or transfer your property to your trust. Please consult your attorney or estate planning professional before attempting either option.

If you transfer your property to a trust, your attorney should know that three criteria are required in order for your Homestead Exemption and SOH cap to remain intact:

• You as the homestead owner must have beneficial or equitable title to real property. In other words you must be the trustee or beneficiary of the trust. If you are the beneficiary but not the trustee, your interest must be in REAL property, not PERSONAL property.
• You must have the present possessory interest in the property. Simply, you must have the right to live there.
• The deed that transfers the property into the trust must be recorded.

Widow/Widower Exemption - $500

Any widow or widower who is a permanent Florida resident may claim this exemption. If the widow or widower remarries they are no longer eligible. If the husband and wife were divorced before the death, the person is not considered a widow or widower. You will be asked to provide a death certificate when filing.

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Disability Exemptions

NEW PROPERTY TAX BENEFIT FOR 2007

You may qualify if you can answer YES to ALL of the questions below:

• Were you a Florida resident when you entered the military?
• Do you currently receive a Homestead Exemption?
• Were you at least 65 years of age on January 1st?
• Do you have a partial or total permanent COMBAT RELATED disability?
• Were you honorably discharged upon separation from military service?

If you answered yes to all of the above, you must apply on or before March 1st and supply:

• A copy of your most current rating decision from the VA, including evidence that your disability is combat related, AND
• A copy of your DD-214

If you do not have your DD-214, please contact the Pinellas County Veteran's Service Office at

(727) 464-8460 for assistance in obtaining a duplicate copy. If you are unable to provide a DD-214, you must supply the following:

• A copy of your most current rating decision from the VA, AND
• Proof of Florida residency at the time of entering military service, AND
• Evidence that your disability is combat related, AND
• Proof of your date of birth

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$5000 Veteran's Disability

A $5000 exemption is available on property owned by an honorably discharged veteran with a service connected disability of 10% or greater. This is in addition to the $25,000 homestead exemption, resulting in a total exempt amount of $30,000. The applicant is required to be a permanent and legal resident of Florida.

To qualify, the applicant must present a letter or certificate of disability from the United States Government or the United States Veteran’s Affairs that indicates that the person is an honorably discharged veteran with a service connected disability of 10% or greater as of January 1st of the year of application.

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Surviving Spouse of a Disabled Veteran

Can you answer YES to ALL of these questions?

• Did your spouse have a service-connected disability of 10% or greater?
• Was your spouse honorably discharged?
• Was your spouse a permanent resident of Florida at the time of death?
• Were you married to the Veteran for at least 5 years at the time of death?

If you have NOT remarried, and answered yes to all of the above, you may be eligible to receive an exemption of $5000 from the assessed value of your property. You must apply on or before March 1st and supply:

• A copy of the veteran's death certificate or obituary, AND
• Evidence of your marriage for at least the 5 years prior to the veteran's death, AND
• Evidence that the veteran was a permanent Florida resident at the time of death, AND
• A copy of the veteran's most current rating decision from the VA

Questions? Please call our Exemptions Department at (727) 464-3294.

You must apply ON OR BEFORE MARCH 1st!

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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 1 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 his or her death. Consult the Personal Exemption Division at (727) 464-3294 for more details.

If filing for the first time, please bring proof of your service-connected disability, such as a letter from the U.S. Government or the United States Veterans' Administration.

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Exemption for Totally and Permanently Disabled Persons -

Any real estate used and owned as a homestead less any portion thereof used for commercial purposes by any quadriplegic shall be exempt from taxation.

Any real estate used and owned as a homestead less any portion thereof used for commercial purposes by a paraplegic, hemiplegic or other totally and permanently disabled person, as defined in Section 196.012(10), F.S., who must use a wheelchair for mobility or who is legally blind, shall be exempt from taxation. A person entitled to the Exemption for Totally and Permanently Disabled Persons must be a permanent resident of the State of Florida as of January 1 of the year of assessment. Also, the prior year gross income of all persons residing in or upon the homestead shall not exceed a specified amount. Contact the Property Appraiser's office for the current year's amount. Gross income shall include Veterans Administration and any social security benefits paid to the persons. A statement of gross income must accompany the application. If filing for the first time, please bring a certificate from a licensed Florida physician or the Veterans Administration, stating the disability is total and permanent with mobility by wheelchair.

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Exemption for Disability ($500)

A $500 exemption is available on property owned by a 100% totally and permanently disabled person who does not use a wheelchair for mobility and/or whose income is over the statutory limit for total tax exemption. This is in addition to the $25,000 homestead exemption, resulting in a total exempt amount of $25,500. The exemption is available on any or all property owned by the applicant, and also applies to tangible personal property, such as mobile home attachments. The property owner is required to be a permanent and legal resident of Florida.

To qualify, the applicant must present a letter from his or her licensed Florida physician or the Social Security Administration stating that he or she has a 100% total and permanent disability. A letter from the Veteran's Administration is also acceptable if the letter states that the disability is non-service connected (A service connected disability is another type of exemption. See Veteran's Disability following). If needed the Department of Revenue form is available for the applicant to have signed by his or her doctor.

Exemption for Blind Persons - $500

A $500 exemption is available on property owned by a blind person whose income is over the statutory limit to qualify for total tax exemption. This is in addition to the $25,000 homestead exemption, resulting in a total exempt amount of $25,500. The property owner is required to be a permanent and legal resident of Florida. The applicant must present a letter from his or her licensed Florida Physician, the Veteran’s Administration, the Social Security Administration or the Division of Blind Services that he or she is legally blind. A blind person is defined as a person who is “certified by the Division of Blind Services of the Department of Education or the Federal Social Security Administration or United States Department of Veterans Affairs to be blind. As used herein "blind person" shall mean 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.”

Senior Exemption

An Additional Senior Exemption will be available to qualified residents in seventeen municipalities plus Unincorporated Pinellas for 2007.

QUALIFICATIONS:

• At least one property owner is 65 years of age or older on January 1, 2007;
• The applicant qualifies for or is already receiving Homestead Exemption;
• Total household income is $24,214 or less. Social Security Income is not included in that amount if a resident is NOT REQUIRED to file an income tax return;
• Applicant lives in a tax district offering the exemption.

FIRST-TIME APPLICANTS! WHEN YOU APPLY, BRING:

• Proof of age (Driver License, Voter ID, Birth Certificate, or Medicare card)
• If required to file a Federal Income Tax Return: bring Form 1040 or 1040A for 2006.
• If not required to file a Federal Income Tax Return: bring documentation such as SSA 1099, or any 1099, bank statements or other documents that will show your total income for the year 2006.

INCOME DOCUMENTATION FOR ANY YEAR OTHER THAN 2006 CANNOT BE ACCEPTED.

RENEWALS:

This exemption does not automatically renew like the homestead exemption does. If you received the exemption last year, you will be able to renew by mail this year. A renewal form will be sent to you by the end of January.

APPLICATION DEADLINE MARCH 1.

This exemption is based on income received in 2006. Since applicants must show proof of income, wait until at least the third week of January to apply when most or all income information is received. If you do not have all of your income information and the March 1 deadline is near, apply anyway! The deadline to supply income information is JUNE 1.

The following taxing districts have adopted the additional exemption for 2007:

TAX DISTRICT	AMOUNT	APPROX SAVINGS		TAX DISTRICT	AMOUNT	APPROX SAVINGS
Belleair Beach	$25,000	$ 58.00		Pinellas Park	$25.000	$124.00
Clearwater	$25,000	$ 130.00		Redington Shores	$20,000	$34.00
Dunedin	$25,000	$102.00		Safety Harbor	$25,000	$68.00
Indian Rocks Beach	$25,000	$38.00		St. Pete Beach	$20,000	$52.00
Kenneth City	$25,000	$94.00		St. Petersburg	$15,000	$99.00
Largo	$15,000	$64.00		Seminole	$25,000	$69.00
Madeira Beach	$25,000	$48.00		Tarpon Springs	$25,000	$120.00
N Redington Beach	$25,000	$ 21.00		Treasure Island	$25,000	$ 66.00
Oldsmar	$25,000	$115.00		Pinellas County Unincorporated Only	$25,000	$59.00

Please call our office at 727-464-3294 for more information.

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Housing for Parents/Grandparents

THIS IS NOT YET AN ACTIVE EXEMPTION.

In November, 2002, Florida voters approved an amendment to provide a local option reduction in the assessed value of homesteaded property for the purpose of providing living quarters for parents or grandparents of the property owner. The 2002 Legislature enacted an implementing bill effective January 7, 2003 (F.S. 193.703).

The exemption will only cover additions (or separate structures on the same property) built specifically for the purpose of housing parents or grandparents, after the exemption has been adopted. There will be no retroactive provision.

This exemption must be adopted by the Pinellas County Commission in order to be operative in Pinellas County. Pinellas County has not adopted this exemption.

For more information, about the Legislature's progress on this and other laws, visit the Florida Senate website.

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Institutional Exemptions

In Pinellas County, property tax exemption can be granted only if an organization meets the specified criteria under Florida law.

Property must be owned by an exempt entity and used exclusively or predominantly for an exempt purpose as of January 1 of the year the organization requests an exemption. The organization must file an original application for exemption between January 1 and March 1, and must qualify according to the statutory definition under the exempt categories: religious, charitable, educational, literary, or scientific. Please contact the Institutional Exemption Division at 727-464-4349 for more information.

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Agricultural Classification of Lands

No land shall be classified as agriculture land unless an application is filed on or before March 1 of each year (F.S. 193.461(3)(a). Only lands which are used primarily for bona fide agriculture purposes shall be classified agricultural. "Bona fide agricultural purposes" means good faith COMMERCIAL agricultural use of land.

The statutory assessment for property is January 1. Therefore the property must be in use on this date.

The approval or denial of a particular application for agricultural exemption is a decision made after analyzing the entirety of circumstances surrounding the viability of the particular agricultural operation as a commercial entity, rather than on a specific point. Please contact the Institutional Exemption Division at 727-464-4349 for more information

Denial of Exemptions

When a new application for exemptions made by March 1st cannot be granted due to the failure of the property owner to meet the requirements, a notice of denial is sent to the applicant on or before July 1st. This notice describes the exemption being denied, and is sent via registered mail or hand delivered. In cases where a person has applied for more than one exemption, the letter includes an approval of any exemptions that have been granted, along with the exemption being denied, e.g.: homestead is approved, but a disability exemption is denied due to lack of documentation.

When an existing exemption is found to be undeserved for any reason, including fraud, oversight or lack of knowledge, the exemption is immediately denied. A notice of intent to deny is mailed via certified mail to the person claiming the exemption, which states the reason for the denial and an explanation of any liens that may be placed on the property. If the notice of intent to deny is mailed after February 1st, the property owner is allowed 28 days during which to file a new exemption application for that same year without being considered a late application.

Appeal of Exemption Denials & VAB

When a person has been notified by registered mail sent on July 1st, he or she has 30 days to file a petition for appeal with the Value Adjustment Board. There is NO filing fee for applicants who have been denied an exemption UNLESS the denial is for a late file. If the petitioner is appealing a denial of an application that was filed late (after March 1st ), a $15 filing fee is due.

Applicants whose exemptions have been properly denied by July 1st must file their appeals within the 30 day filing period. They are not permitted to file an appeal based on notification by the Notice of Proposed Property Tax (TRIM). If a properly denied applicant misses his or her VAB filing deadline, their only recourse is to file suit in the circuit court.

When the Notice of Proposed Property Tax (TRIM) is mailed, this may alert a property owner that he or she has failed to file for exemptions. An exemption application may be filed at that time, but a petition for appeal to the Value Adjustment Board must also be filed, since the application is late and is automatically denied. A petitioner who has not previously been denied by certified mail has until 25 days after the mailing date of the TRIM to file a petition with the VAB. This deadline is printed on the TRIM notice itself.

A petitioner is given an appointment for a VAB hearing before a Special Magistrate who is an attorney not affiliated with either the Board of County Commissioners or the Property Appraiser. This person is an independent hearing officer, hired to hear appeals of exemption denials. At the hearings of the Value Adjustment Board, the petitioner or his or her representative must appear in person at the appointed time and place, and present evidence that demonstrates that he or she is entitled to the denied exemption. An exemption specialist from the Property Appraiser’s office is also in attendance to present the documentation and statutory references upon which the denial was based. The Special Magistrate will consider all evidence presented and make a ruling to either grant or deny the exemption. The decision of the VAB is final, unless the petitioner files suit in the circuit court within 15 days of the ruling, or the Property Appraiser files suit within the appropriate time frame.

In the case of an exemption application that is filed late, the petitioner must present evidence and documentation that demonstrates extenuating circumstances beyond his or her control that precluded the applicant from filing by the March 1st deadline. Most of the late filed applications are due to the property owner simply not knowing about the March 1st deadline. Unfortunately, Special Magistrates will not usually accept this as an extenuating circumstance.

Rules of evidence for the Value Adjustment Board apply to petitions for exemption denials as well as petitions for valuation issues. At least 10 calendar days before the petitioner’s scheduled hearing, he or she must provide a list, summary of and copies of any evidence to be presented at the hearing. In turn, the Property Appraiser must provide the same information to the petitioner no later than 5 days after receiving the petitioner’s evidence. According to VAB procedures, any such evidence not submitted by the petitioner by these deadlines cannot be presented at the hearing.

Fraudulent or Undeserved Homestead Exemptions

Homestead exemption is a valuable benefit that can save a homeowner a minimum of abo