Owners cannot rent out the property and still claim homestead. They also can’t claim residency in Florida and another state. “Only one home is your primary residence,” she says.

People who sell their primary Florida residence and buy another primary Florida residence can transfer their homestead exemption, but they must file new paperwork.

“Some people think it’s taken care of for them at closing, but it isn’t,” Ms. Ybaceta says. “We don’t know when you purchase a property that you’re making it your primary residence until you make an application.” Another misconception is why neighbors might be paying different tax amounts on houses with the same value. Ms. Ybaceta gives the example of a homeowner who filed for a homestead exemption in 2010 and a neighbor who filed in 2020. The assessed value of the first homeowner’s property was capped at an increase of 3% or less since 2010, while the second homeowner’s taxes are based on current assessed value, which is likely higher.

The values of any improvements, such as a pool, are assessed at full value the year they are made and then fall under the Save Our Homes cap. The appraiser’s office helps homeowners understand what happens in changes of ownership. For example, if one spouse passes away but the property was in a trust that says the home goes to the surviving spouse, the exemption continues. However, if the spouse must buy the house, that leads to a break in ownership and a new exemption must be filed at the current value.

In the case of a divorce, if a spouse stays in the primary residence and has been a Florida resident, the exemption can continue.

If a brother and sister own a property but only one files for the homestead exemption, only that sibling receives the tax savings equal to their ownership percentage.

Ms. Ybaceta recommends that all owners of a property file for homestead exemption to help with these types of transitions.
People can also claim a homestead exemption for years, change their residency out of Florida for a while, and reapply for a homestead exemption if they once again make Florida their primary residence. However, the new exemption is based on the current assessed value. Ms. Ybaceta says many states offer exemptions but might call them another term, such as rollbacks. She says homeowners should assess which state offers them the greater tax savings.

“Some other states have equal savings or are income-based. They have to look at the pros and cons of how much they would save in Florida versus another state. Nothing can predict next year’s home values or millage rates.”

The appraiser’s office does its best to let homeowners know about the various exemptions. Each August, when it mails the proposed notice of home value and millage rates, it includes a brochure about homestead exemptions. Every time a residential property is purchased, the office mails a brochure to the new homeowner. And from January through March, when homeowners can file for homestead exemption for that year, the office occasionally advertises. “Our goal,” Ms. Ybaceta says, “is to make sure that everyone who is entitled to the homestead exemption gets the homestead exemption.” ¦

Additional exemptions

Visit the appraiser’s office website or one of its offices for details about these additional opportunities that can range from $500 to complete exemption:

¦ Low-income senior age 65 and older with an adjusted gross income (per household) of $31,100 or less

¦ Long-time senior homeowner in the residence for more than 25 years and with a home value less than $250,000

¦ Disabled veteran

¦ Deployed military

¦ Surviving spouse of military veteran or first responder killed in the line of duty

¦ Civilian disability

¦ Widow or widower

¦ Nonprofit

Where do I file for the Homestead Exemption?
In Collier County you can file for the Homestead Exemption at any of the following locations:

Main Office
3950 Radio Rd., Naples, FL 34104 

Orange Blossom Office
2335 Orange Blossom Dr., Naples, FL 34109

Golden Gate City Office
4715 Golden Gate Pkwy., Naples, FL 34116

For  any question  about Real Estate in Naples, Bonita Springs, Estero or Marco Island Contact Mike Shoaff with REMAX.