Quote:
Originally Posted by ton80
Bill. with all due respect. The OP asked what is the value of getting the Homestead exemption. There are two parts of the value of applying for and getting approval for the Homestead Exemption.
1.Getting the Homestead exemption itself gets to save you up to 50,000$ (for 2 owners) in taxable value and also makes you eligible for the Save Our Homes limits on Home Appraisal increases.
2. In my case save our homes reduces my taxable value by more than 400k$..a much bigger savings. Since the tax budget is a zero sum exercise, the tax rate would change somewhat if there was no SOH program, so the actual savings would not be quite as large as 42% but would be more than the effect of the Homestead Exemption reduction of reducing taxable value by 50,000$.
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This explanation is the correct financial explanation.
The average assessment increase is 7% per year without the exemption.
The difference in assessed value roughly 4-5% per year reduction in assessed value with the exemption, which multiplied by the tax rate is the significant savings.
So, yes, the homestead exemption is very valuable, especially when inflation is higher than 3%, and the longer you own the home, the more money you save as the differential adds over time.