[KEVIN & JOSIE]

I read the following in a Kiplinger publication report in reference to Homestead exemption taxes:

A homeowner who is new to the state may qualify for a homestead exemption within one year of residence in Florida if he has not owned property in the state for the previous three years. This homestead exemption, which is equal to 50 percent of the homestead property’s market value, is for all levies other than school district levies. This exemption applies for five years or until the year the property is sold, whichever occurs first. The amount of the additional exemption is reduced in each subsequent year by 20% or by an amount equal to the difference between the market value of the property and the assessed value of the property, whichever is greater.

Does this mean after five years you lose the exemption, or am I misunderstanding this? Thank You