One of the most underrated aspects of the homestead exemption is that it doesn’t just reduce the taxable assessment of your home, it also caps its annual valuation. The Save Our Homes Cap limits any increase to the assessed value of a homestead exempt property to a maximum of 3% each year or the change in the Consumer Price Index (CPI), whichever is lower. Over time, the cap can provide substantial tax bill savings.

For 2025, the maximum increase will be 2.9%, as that was the change in CPI from December 2023 to December 2024. This slowed increase in CPI reflects plateauing inflation over the past year across dozens of consumer categories including shelter, food, transportation, and energy. 

While the change in the CPI follows many markets, Florida law requires my office to value property based on the status of the real estate market in Palm Beach County. My office will determine a total market value for every home as of January 1, taking into consideration the price fluctuations reflected in the sales of residential properties. But if your property is homesteaded, the taxable assessed value will not increase more than 2.9%.

If you already have a homestead exemption on your property, you do NOT need to reapply. There are several additional property tax exemptions, including those for widows/widowers, veterans, and those with disabilities. For more information, visit pbcpao.gov or call Exemption Services at 561.355.2866.

In this month’s newsletter, a reminder to all business owners in Palm Beach County about filing for a Tangible Personal Property Tax Return for 2025 and my office’s annual college scholarship application process is now open. Enjoy reading and enjoy your spring.

Tangible personal property is equipment used in a business and includes furniture, fixtures, machinery, tools, appliances, signs, leasehold improvements, supplies, leased equipment, and other assets. It is taxed at the same rate as real property.

All tangible personal property must be reported. Florida law allows an exemption up to $25,000 for business tangible assets. Businesses with tangible personal property assets valued at more than $25,000 are subject to ad valorem taxes, and those with less than $25,000 in assets are exempt from ad valorem taxes. 

All businesses must file an initial Tangible Personal Property Tax Return (DR-405) their first year of operation. Afterwards, all businesses are required to file a Tangible Personal Property Tax Return (E File or Form DR-405) annually unless the value of the personal property was under $25,000 AND they received a yellow postcard from our office that the requirement to file has been waived. If a business purchases additional assets that increase the total value of the assets over $25,000, they are required to file a return.

The statutory deadline to file a return without an extension is April 1. All extension requests must be received by 5 p.m. on March 31 to be considered for approval. Failure to file will result in the loss of the exemption and the assessment of penalties per Florida Statutes, Sections 193.072 and 193.073. Our office will not waive penalties for any returns filed after the extended deadline of May 15.

Save time, paper, and postage by E filing. If you need a paper form, you can download the DR-405 on our website. If you have any questions about reporting personal property, tangible E filing, or the $25,000 tangible exemption, please call our office at 561.355.2896 or email mytpp@pbcpao.gov.

The 2024 scholarship awardees with the PAO Scholarship Committee