Quote:
Originally Posted by Bill14564
If you have the homestead exemption then you aren't missing out on anything.
The Homestead exemption is a deduction from the assessed value before calculating property taxes. The deduction is $25,000 for school taxes and $50,000 for all other taxes.
The Save Our Homes (SOH) benefit says the taxable value of a home that has a homestead exemption cannot increase more than 3% in any one year. This kicks in automatically if you have a homestead exemption. While the market value of the home can increase greatly, the taxable value can only increase by 3%.
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The OP asked what the Homestead Exemption would do for taxes on a home assessed for $350,000. The Homestead Exemption would reduce the assessed value by $25,000 for calculating school taxes and by $50,000 for calculating all other ad-valorem (property) taxes. The SOH benefit comes into play in determining the $350,000 assessed value. The home may have a market value of $450,000 but with a $100,000 SOH benefit the assessed value would be the $350,000 that the OP asked about.
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Start with a $350,000 house:
Annual assessed increase 7% (ours) without SOH exclusion
Annual assessed increase 3% with SOH exclusion.
$50,000 deduction on assessed value with SOH
1.1% property tax rate (median estimate)
Calculation is (Start Value *1.07^(YearNbr) - StartValue * 1.03^(YearNbr)-exclusion) * propertytaxrate
Savings differential yearly with and without SOH exclusion:
Year Savings
1 $700
2 $873
3 $1,059
4 $1,263
5 $1,487
6 $1,730
7 $1,997
8 $2,288
9 $2,605
10 $2,949