Per Florida Statute, the Property Appraiser values parcels each year based, in part, on condition and ownership status as of January 1. When a property is conveyed to a new owner, the previous owner's exemptions and Save-Our-Homes Cap will be removed at the end of the calendar year, which can cause a dramatic increase in taxes. The new owner must apply for his or her own homestead exemption. Do not rely on the current owner's tax amount when estimating your taxes. More important information on the removal of the Save-Our-Homes Cap can be found here.
A property's value is not based solely on the specific purchase price of that property. Value is a reflection of the market. When sale prices decline, so do values, and conversely when sale prices increase, so do values. An arms-length sale price is one component used, along with other market information, such as comparable sales, to help establish values.