Solutions to potential puzzles of portability

By Bill Varian, Times Staff Writer
Published February 18, 2008

Nearly three weeks after voters overwhelmingly approved Amendment 1, deadlines are looming for those hoping to take full advantage of the property tax cut plan in 2008.

An increase to your homestead exemption is automatic and will require no further action by property owners.

But if you're hoping to benefit from portability - the provision that will allow homesteaded homeowners to transfer their Save Our Homes benefit to a new home - the new measure can be tricky to understand.

To benefit from portability, you will need to file an application to your county property appraiser's office. So, too, will applications be needed for a new exemption for some business equipment and mobile home property.

Some of the lingering questions over Amendment 1:

So, why hasn't my tax bill gone down yet?

The increase in the homestead exemption will apply to the tax bills homeowners receive this fall. The average benefit statewide is estimated at $240.

The savings come from an additional $25,000 homestead exemption on local government taxes. The new exemption does not apply to school taxes. To fully enjoy the new exemption, your home must be assessed at $75,000 at least. Those whose homes are between $50,000 and $75,000 will see a prorated benefit.

How do I take advantage of the new property exemption for business equipment or mobile home property?

You have until April 1 to submit documentation of tangible personal property, a deadline that existed previously. The annual filing will serve as application for a tax break on desks, computers and other equipment, worth up to $25,000.It's also available for property, such as garages and sheds, that mobile home owners have added to their property.

How do I sign up for portability? How much will I save?

If you qualify, you must apply by March 1 to your county property appraiser. Who qualifies: Property owners who moved from one homesteaded property to another in 2007. The owner must claim a homestead on the new home this year. Savings will vary and depend on how much the Save Our Homes annual 3 percent cap on property assessment increases has suppressed the old home's assessed value.

What if I plan to move this year? How do I apply for portability going forward?

When you seek a homestead exemption on the new property, you also must fill out a separate application for portability. Do not assume that your title company will do this.

How long do I have to transfer my benefits?

Going forward, you will be allowed to transfer tax benefits to a new home as long as you held a homestead sometime in the previous two years.

Do I have to sell my house to take advantage of portability, or could I transfer that savings to my second home?

You may transfer the savings.

I'm getting a divorce. We're selling the homesteaded house we shared together and each buying new ones. What happens?

You both get to transfer half of your tax benefits under Save Our Homes to your new individual homesteaded properties.

What happens if my spouse stays in the house that we shared?

That's a tricky one that the Department of Revenue says it will seek to clarify with the Legislature when it meets in March.In theory, you will be able to take half of the value of your tax shelter with you to your new solo digs. But the spouse who stays behind would have toagree to abandon the homestead exemption on the house you shared.

But it's unclear if the spouse can obtain a new homestead exemption on the former marital home and enjoy half of the Save Our Homes benefit.

What happens when two people, both with homesteads, decide to move into a new house together? Can they apply their combined tax savings to the new house?

No. They will be able to transfer only one Save Our Homes benefit - the most generous of the two they held before.

How about if someone with a homestead moves in with someone who already has a homestead. Can the mover's tax savings apply to their new joint home?

Yes, with some work. The homeowner would have to abandon his or her homestead and then the mover would apply for a new homestead with portability.

How do I figure out my portability savings?

For the easy answer, visit our Web site at www.tampabay.com/taxes and use our portability calculator.

If you want to try it yourself, first look up your home through a records search on your respective property appraiser's Web site. Links are available at the Web address above.

Find the "just market value" of your home. Then find the "assessed value," which is the amount on which your tax bill is determined.

Subtract the assessed value from the market value, and the difference is your Save Our Homes tax benefit. Remember, however, you can only transfer up to $500,000 in tax benefit to a new home.

[Last modified February 17, 2008, 20:09:19]