Portability Example

Former Homestead
Formula:

Save Our Homes (SOH) Cap Value =
Just/Market Value - Assessed Value

Taxable Value = Assessed Value - 50,000*

Taxes = Taxable Value x Millage rate (for this example we use 20 mills)

*The additional $25,000 exemption is applied to the assessed value between $50,000 and $75,000. It does not apply to school taxes, so those taxes ($25,000 x .007009 = $175) would be added back in to the final tax amount.

$162,000
$104,000
$ 54,000
Taxes (Avg 20 mills and
$50,000 homestead exemption)
$1,175*
Cap Value $58,000
($162,000 - $104,000)

If you move to a higher valued home:
(Keep the Value of the Cap)

New Assessed Value =
(Just Value of new home - Save Our Homes Benefit of old home) - $50,000

New Taxable Value = New Assessed Value - Exemption

New Estimated Taxes = (New Taxable Value x Millage Rate) + School Taxes*

UPSIZING
to a home with a Just Value of $300,000
(New Assessed Value)
$300,000 - ($162,000 - $104,000)
=
$242,000
$242,000 - $50,000 Exemption*
=
$192,000
(Taxable Value)
Taxes (Avg 20 Mills)
=
$ 4,015*
Cap Value $58,000
(previous home's just value - previous home's assessed value)

DOWNSIZING
to a home with a Just Value of $125,000
If you move to a lower valued home:
(Take Cap Percentage)

New Assessed Value =
(Just Value of New Home / Just Value of Old Home) x Assessed Value of Old Home

New Taxable Value =
(New Assessed Value - Exemptions)

New Estimated Taxes =
(New Taxable Value x Millage Rate) + School Taxes*

(125,000 / $162,000) x Old Assessed Value
$ 80,247
=
$80,247 - $50,000 Exemption*
=
$ 30,247
Taxable Value
$ 780*
=
Taxes (Avg 20 mills)
Cap Value $44,753 ($125,000 - $80,247)
* Homestead exemption amounts based on an original $25,000 homestead exemption plus the additional $25,000 exemption on the assessed value between $50,000 and $75,000. The additional exemption would not apply to school taxes, so those taxes ($25,000 x .007009 = $175) have been added back in to the final tax amount.