Dear Taxpayer:
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 2024, the maximum increase will be 3%, as the change in CPI increased 3.4% from December 2022 to December 2023. This increase in CPI reflects continued but slowing 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. 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 3%.
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 2024 and my office’s annual college scholarship application process is now open. Enjoy reading and enjoy your spring.
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