Frequently Asked Questions




NON-HOMESTEAD 10% CAP

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1. What is Non-Homestead?

Non-Homestead property refers to real property that is not eligible for a homestead exemption. It can be residential or non-residential.

2. What is the Non-Homestead Cap?

The Non-Homestead cap provides a method for limiting the assessed value increase of any real property that does not benefit from a homestead exemption.

3. How does the Non-Homestead Cap Work?

Increases in real property assessed value are limited to no more than 10%, as compared to the previous year, regardless of the market value increase. However, the assessed value may increase up to 10% per year, even if the market value remains the same (commonly referred to as "recapture"); unlike Homesteaded property, which can only go up by 3% or the CPI, whichever is lower.

Note: The Non-Homestead 10% cap does not apply to the School Board portion of the millage. The School Board portion of the taxes is bases on 100% of the Just (Market) Value.

4. What happens to my Save Our Homes cap if there is a change or transfer of ownership?

The Assessed Value of a property can never be greater than the Just (Market) value.

5. Do you have to apply for Non-Homestead "exemption"?

The Non-Homestead cap is automatically applied to all Non-Homestead property by the Property Appraiser's Office. There is no application to complete.

6. When does Non-Homestead exemption reset?

There are two instances when this would apply:

a. Non-homestead resets when there is a cumulative transfer of greater than 50% ownership since the property's last reassessment or
b. On non-residential type properties when there are improvements made to the property which contributes to 25 percent or greater to the overall just value. An improvement can either be a new building, building addition, renovation, extra-feature improvements or parcel join.

6. When does Non-Homestead exemption reset?

A transfer between legal and equitable title is not subject to a reset of the Assessed Value.

Another exclusion to the transfer reassessment is when it occurs between a husband and wife. This includes when the transfer is the result of a divorce or to a surviving spouse. However, this is only applicable to residential class properties and not to non-residential class properties.

It should also be stated that a re-recording of a deed to correct an error is not cause for resetting the assessment. This is not a transfer, but a correction to a previous transfer.

8. What happens when I have owned a property for many years as a Non-Homestead property and I decide to apply for the Homestead exemption?

When a property goes from a Non-Homestead Property to a Homestead property, the Non-Homestead cap will be lost. The year in which you apply for the Homestead exemption will become your new "base year" and the Assessed Value will reset to the current Just (Market) Value. The same will apply when a property goes from a Homestead property to a Non-Homestead property.

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