In a post I wrote some time ago, I talked about Amendment One or Property Tax Portability. In a time of sagging real estate prices, there continues to be some GOOD NEWS in Real Estate.
If you have lived in your home for a long time (let’s say 10 years or more), there is likely a difference between the assessed and market values of your home due to the Save Our Homes Amendment (Amendment 10) which has limited the increase in the assessed value of your home to 3% or the CPI (whichever is less) since it was passed in 1992.
If you are one of the lucky people who has benefitted from this difference in value (referred to as deferred value), when you SELL, you can carry or “port” this difference with you to a new homestead in the state of Florida.
Effective as of January 2008, Amendment One was intended to “unlock” the real estate market and enable people who had been in their homes a long time and who had accumulated substantial property tax savings to take it with them or “port” it to a new homestead so they could sell but continue to enjoy lower property taxes.
I recently had the pleasure of working with a customer who had accumulated the maximum allowable port ($500K) who was able to apply that amount to a new residence and realize SUBSTANTIAL savings on their property tax bill. The customer did not know about Property tax portability and was, of course, DELIGHTED to learn about this amazing benefit! Click here for a table with examples of how Portability works.
It pays to work with realtors who know not only the latest statistics of the market but also other facets of the market that can save you money!