10% Assessment Limitation for Non-Homestead Property Frequently Asked Questions

In Florida, non-homestead residential property and most commercial properties receive the benefit of a 10% assessment limitation (cap). This Constitutional benefit helps protect property owners from significant year-to-year increases in their property taxes.

What is considered non-homestead property for 10% assessment limitation purposes?
How does it work?
Do I have to apply for it?
How does it impact my taxes?
Why did my non-homestead residential property increase more than 10%?
Why did my non-residential property increase by more than 10%?
If I purchase a property will the prior owner's assessment limitation benefit carry over to me?
Why am I receiving the 10% assessment limitation on my primary residence?
Does an unrecorded change of ownership or control trigger a reassessment?

What is considered non-homestead property for 10% assessment limitation purposes?

Residential real property that does not have homestead exemption (e.g., second homes, vacation homes), multi-family residences with less than 10 units and most non-residential property (i.e., commercial and vacant land).

Non-homestead property not subject to the 10% assessment limitation are properties receiving the homestead exemption, tangible personal property, land with agricultural classification, land used for conservation purposes, or recreational and commercial working waterfront properties.

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How does it work?

It restricts the increase in the property’s assessed value to 10% annually. The assessment limitation will remain year over year as long as there is no change in ownership, granting of the homestead exemption, splitting or combining parcels in the previous year, and the completion of qualifying improvements.

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Do I have to apply for it?

No. It is automatically applied to qualifying non-homestead property.

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How does it impact my taxes?

Property appraisers do not determine taxes and there are many factors outside of the property appraiser's control that impact your taxes, such as changes to tax rates (millage) and non-ad valorem assessments (levies for governmental services not based on property value).

The property appraiser will reassess your property annually with a maximum increase in assessed value of 10%. Taxing authorities which levy property taxes against your property set millage rates each year. The taxable value of your property is multiplied by the millage rate to determine taxes due. The taxable value takes into account the 10% assessment limitation (except for school board levies).

All properties are subject to the recapture rule which means if your market value exceeds the assessed value property appraisers must increase the assessed value by the recapture rate (10%) until the market and assessed values are equal.

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Why did my non-homestead residential property increase more than 10%?

There was action taken that caused the reset of the property to market value, such as applying for and being granted the homestead exemption.

There was a change in ownership or control of the property such as the transfer of title to an LLC, the transfer or addition of any person to the title other than a spouse.

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Why did my non-residential property increase by more than 10%?

There was action taken that caused the reset of the property to market value, such as improvements (additions or changes to land or buildings) to commercial property that increases the value by at least 25%.

Unlike the transfer of non-homestead residential property, the transfer of non-residential property between a husband and wife will trigger a reset of the property to market value and loss of the 10% assessment limitation.

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If I purchase a property will the prior owner's assessment limitation benefit carry over to me?

No. The property will be re-assessed at full market value on January 1 the year following the sale. The 10% non-homestead assessment limitation is then applied to the property the following January 1.

If you receive a TRIM (truth-in-millage) Notice that lists homestead exemption(s) the year you purchased your property, that was the benefit of the prior owner and will be removed on January 1.

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Why am I receiving the 10% assessment limitation on my primary residence?

You have either not applied for or been granted the homestead exemption which receives the maximum benefit of the 3% Save Our Homes (SOH) assessment limitation.

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Does an unrecorded change of ownership or control trigger a reassessment?

Yes. Any person or entity benefiting from the 10% non-homestead assessment limitation must notify the property appraiser promptly of any change of ownership or control if it is not recorded by deed or other instrument in the public records where the property is located. Failure to report this change may subject the property owner to a lien for back taxes, interest and penalties.

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