Homestead & Other Exemptions

DID YOU KNOW YOU COULD SAVE $$ MONEY $$
OFF YOUR ANNUAL PROPERTY TAXES?

If you own property that you will be using as your permanent and primary residence on January 1, 2011, you could reduce the Assessed Value of your homestead property by up to $50,000, resulting in a tax savings of approximately $600 annually. Click here for other exemptions.

Our office is accepting exemption applications for the
2011 Tax Year until March 1, 2011.
** Applications submitted after this date will be for the
2012 Tax Year **

We offer 2 easy ways to file for the exemption,
in person or apply by mail

What Is Homestead Exemption?

A Constitutional benefit of up to $50,000, available to bona fide Florida residents who live in, and claim a residence as their permanent and primary home on January 1, and file an application with the Property Appraiser's Office prior to March 1. It exempts the first $25,000 and applies to the Assessed Value of all taxing levies. The second $25,000 applies to the Assessed Value beginning at $50,000 up to $75,000, of all taxing levies with the exception of the School District.

The exemption amount is incremental, depending on the Assessed Value of the property.

• If your Homestead property has an Assessed Value of up to $50,000, you will keep the current exemption of $25,000.

• If your Homestead property has an Assessed Value of $50,001 through $74,999, the additional homestead exemption will increase up to $24,999. 
• If your Homestead property has an Assessed Value of $75,000 or more, you will receive the full additional $25,000 Homestead Exemption.

The additional exemption applies to all taxing levies with the exception of the School District.

How Does the Additional Homestead Relate To My Value?

	HOME #1	HOME #2	HOME #3
ASSESSED VALUE	$45,000	$55,000	$75,000
MINUS CURRENT EXEMPTION	-25,000	-25,000	-25,000
MINUS ADDITIONAL EXEMPTION	0	-5,000	-25,000
EQUALS TAXABLE VALUE	$20,000	$25,000	$25,000

Who Qualifies for the Homestead Exemption?

Residents who have legal or equitable title to property, occupy, and make it their permanent and primary residence as of January 1 and are not receiving a residency based tax benefit or exemption on any other property in any other state or jurisdiction. A husband and wife are considered a Family Unit and can only claim one home as their permanent and primary residence.

How Do I Apply for the Homestead Exemption?

Come in person or apply by mail before March 1st to apply for an exemption for the current year. Application for the following year will be accepted after March 1st.

What Do I Need To Bring?

• Valid Florida Driver License (You cannot have a Driver License in another state.) The address must be the same as your Homestead Property Address. If you do not drive, a Florida Identification Card is acceptable
   
• Driver License or Identification Card for Spouse
   
• Hernando County Voter Registration Card (If you are a registered voter, your voter registration address must be the same as your Homestead Property address). If you are not a registered voter, a Declaration of Domicile recorded with the Clerk of Circuit Court is required
   
• Vehicle Registrations owned or leased by you and your Spouse
   
• Social Security Number for all Homestead applicants and Spouse
   
• It is very important for you to know....that Social Security Numbers will remain confidential pursuant to FS 193.114(6) and FS 193.074
   
• Complete Previous Address and Addresses of all other property you or your Spouse resided at within the past three years
   
• Settlement Statement if previous residence was recently sold
   
• If Homestead applicant or Spouse receives an exemption benefit from another state, a letter is required from that State or Country Assessment Office verifying the cancellation of the exemption
   
• If you or your Spouse are employed in another state, a copy of your prior year’s State and Federal Income Tax Return
   
• If you are not a U.S. Citizen, an I.N.S. Permanent Resident Card, a Release Form Affidavit, and a Declaration of Domicile recorded with the Clerk of Circuit Court are required
   
• If the Homestead property is owned by a Trust, see your attorney for specific verbiage required on the deed conveying “equitable title to real estate”.
   
• Mobile Home Title or Registration (Real Property decals required)
   

WHAT IS "SAVE OUR HOMES" AND “PORTABILITY”?  

”Save Our Homes”

In 1994, the Florida voters approved Constitutional Amendment 10, which included Save Our Homes for Homestead property owners. It automatically places a limitation on the annual assessment increases to 3% or the Consumer Price Index (CPI), whichever is less, as long as the property maintains a current and valid Homestead exemption. The annual assessment will increase every year until the Assessed Value reaches the current fair Market Value.

It is very important for you to know....
if the owner of record was entitled to a Homestead Exemption on January 1^st and the property sells during that same tax year, the Homestead Exemption and the “Save Our Homes” Assessment Limitation will be removed on January 1^st of the following year and the property returns to the Market Value. The Market Value becomes the Base Value for “Save Our Homes” purposes for the new owner who must apply for their own Homestead Exemption to be eligible for the limitation in future years.

“portability”

In 2008, the Florida voters approved Constitutional Amendment 1, which included Portability.  Homestead property owners will be allowed to transfer their “Save Our Homes” (SOH) benefit (up to $500,000 of the difference between the Market Value and the Assessed Value) to a new Homestead property.  A Portability Application is required at the time of filing a Homestead exemption

If Homestead property owners moved prior to January 1, 2007, they are not eligible for Portability. 

Starting from January 1, 2007, property owners who sell their Homestead, have up to 2 years to transfer the Assessment Limitation to a new Homestead.

• If the new Homestead’s Just Value is more than the old Homestead, this is “Upsizing.”

 ~ Example of Portability Calculation if “Upsizing” ~

Old Homestead			New Homestead
Just Value:	$250,000		Just Value:	$400,000
Assessed Value:	-150,000		SOH Cap (Deferral):	-100,000
SOH Cap (Deferral):	$100,000		Assessed Value:	$300,000

• If the new Homestead’s Just Value is less than the old Homestead, this is “Downsizing” and the percentage of the accumulated benefit may be transferred to the new Homestead.

~ Example of Portability Calculation if “Downsizing” ~

New Assessed Value is calculated using a
Ratio between the Old Homestead Assessed Value and the Just Value

$150,000 ÷ $250,000 ═ 60%

New Homestead
Just Value: $200,000 X Ratio: 60 % ═ Assessed Value: $120,000

What If My Property Is In A Trust?

If title to the property on which you are applying is held in a trust, see your attorney for specific verbiage granting a beneficial interest for life, such interest being declared to be "equitable title to real estate" .

Per Florida Statute 196.041 (2) A person who otherwise qualifies by the required residence for the homestead tax exemption provided in s. 196.031 shall be entitled to such exemption where the person's possessory right in such real property is based upon an instrument granting to him or her a beneficial interest for life, such interest being hereby declared to be "equitable title to real estate," as that term is employed in s. 6, Art. VII of the State Constitution; and such person shall be entitled to the homestead tax exemption irrespective of whether such interest was created prior or subsequent to the effective date of this act.
 

What If I Own a Mobile Home?

If you are filing on a Mobile Home, proof of ownership is required for both the Mobile Home and the property. An application declaring the Mobile Home as Real Property is also required. Please contact the office for this form.

Is My Homestead Exemption Automatically Renewed or Do I Need To Apply Every Year?

If you received a Homestead Exemption last year and still own the same residence, your permanent home, you will receive a Annual Automatic Renewal Receipt card by mail in January. If you are no longer eligible for the exemption, you must sign and return the card.

What Happens After the Application is made?

Once the application is made, the office begins the process of verifying exemption eligibility of the applicant to insure compliance with State law. If the exemption is granted, it will be reflected on the Notice of Proposed Taxes (TRIM) that is mailed every year in August, as the difference between the Assessed Value and Taxable Value. Each January thereafter the applicant will receive an Annual Automatic Exemption Renewal Receipt Card to be kept if the applicant remains eligible.

If the application for the exemption is denied, you will receive a Certified Letter from the office on or about July1 notifying you of the reason for denial. Florida law provides for an administrative hearing to consider exemption denials. For more information, please click on Trim Notices.

Can an Exemption be Transferred?

No, exemptions are not transferable. You must make a new application if you received an exemption last year but established a new residence as of January 1.

What If I Rent My Homestead Property?

Rental of your Homestead property constitutes abandonment of the residence and loss of the Homestead Exemption based on Florida Law and you must notify this office. Please contact the office to obtain a Homestead Exemptions Removal form.

What If I Have A Homestead Exemption I’m Not Entitled To?

Florida Statute 196.161 (1)(a)(b) & 196.131 (2) provides that in the event of discovery of any Homeowner improperly claiming Homestead Exemption in the State of Florida who otherwise is ineligible for said exemption, a lien may be imposed and the property shall be subject to the payment of all taxes exempt thereunder, together with a penalty of 50 percent of the unpaid taxes for each year, plus 15 percent interest per year. Click here for the Homestead Violation Hot Link.

LOW INCOME SENIOR EXEMPTION

WHAT IS THE LOW INCOME SENIOR EXEMPTION?

The Low Income Senior Exemption will provide an additional Homestead Exemption of up to $50,000. This exemption applies at this time only to the property taxes levied by the Board of County Commissioners.

WHAT ARE THE ELIGIBILITY REQUIREMENTS?

• Homeowners must have a current Homestead Exemption.

• At least one owner must be 65 years of age or older as of January 1st of the year filing.

• Provide proof of age (one of the following listed below)

  • If you drive, a Florida Driver License or

  • If you do not drive, a Florida Identification Card or

  • A copy of your Birth Certificate or other official and/or certified record of document that demonstrates the applicant’s true age.

• Total Household Adjusted Gross Income must not exceed $25,780 last year (2009). (Subsequent years income limitation will be adjusted annually.)

WHAT DOES HOUSEHOLD AND TOTAL HOUSEHOLD ADJUSTED GROSS INCOME MEAN?

Definitions: Section 196.075, Florida Statutes. Additional Homestead Exemption of persons 65 and older.

“Household” means a person or group of persons living together in a room or group of rooms as a housing unit, but the term does not include persons boarding in or renting a portion of the dwelling.

“Household income” means the adjusted gross income, as defined in Section 62 of the United States Internal Revenue Code, of all members of a household. (This is the “Adjusted Gross Income” amount reported on IRS Form 1040.)

WHEN DO I APPLY?

• File your application in person or by mail on or before March 1st.

• All documentation required to verify Total Household Adjusted Gross Income must be submitted on or before June 1st.

Note: If all the required documentation is available, please submit with your initial application.


WHAT KIND OF DOCUMENTATION IS REQUIRED?

If a Tax Return is filed:

1. Complete the Sworn Statement of Adjusted Gross Income of Household and Return (Form 501SC) – Part A, Part C, Part D and sign the application.

2. Provide a copy of the Federal Income Tax return for the preceding year for each household member, including but not limited to Form 1040, 1040A, 1040EZ, or 4868. Please submit with the copy of the Federal Income Tax return all supporting documentation including 1099 (i.e., 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-R, 1099-SSA, etc.).

If a Tax Return is not filed:

1. Complete the Sworn Statement of Adjusted Gross Income of Household and Return (Form DR 501SC) – Part A, Part B, Part D, and Part E and sign the application.

2. Complete the Request for Transcript of Tax Return (Form 4506-T) – lines 1 – 4 and sign the form.

3. Provide copies of the preceding calendar year wage earnings statements for each member of the household, including but not limited to W-2, RRB-1042S, SSA-1042S, 1099, (i.e., 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-R, 1099-SSA, etc.) 1999A.

CLICK HERE TO VIEW AND PRINT THE LOW INCOME SENIOR EXEMPTION APPLICATION PACKET THAT INCLUDES THE INSTRUCTION LETTER AND THE REQUIRED FORMS LISTED ABOVE.

WHERE CAN I FILE?

Please bring all your documentation to either of the office locations at:

Other Exemptions

Widow/Widower Exemption ~ $500

This exemption is available to any Widow/Widower who owns property in Hernando County and is a permanent resident of the State of Florida. If the recipient of this exemption remarries, they are no longer entitled to this benefit. The applicant must have been legally married to the deceased prior to their death. An application must be filed for this exemption and a copy of the Death Certificate must also be submitted. Property owners in a Mobile Home Park may also be entitled to this exemption on their Tangible Tax bill in the event that they meet all of the required residency requirements. To file by mail, click here for the form letter.

Disability Exemption ~ $500

The applicant must submit a statement of disability from one licensed, Florida physician on the Florida state DR-416 form, provide a letter from the U.S. Department of Veterans Affairs, or the Social Security Administration which states that the applicant is legally blind, or totally and permanently disabled and the disability date. To file by mail, click here for the form letter.

Service Connected Disability EXEMPTION ~ $5,000

Veterans entitled to this exemption must submit a letter from the Veterans Administration (Letter # 27-125) stating that they have a permanent disability to a degree of 10% or more. The spouse of a deceased honorably discharged Veteran who was married for a minimum of 5 years is also eligible for this exemption. This letter can be obtained by contacting the Department of Veterans Affairs at (800) 827-1000 and requesting the form letter listed above. To file by mail, click here for the form letter.


TOTAL & PERMANENT DISABILITY EXEMPTION ~ SERVICE CONNECTED

This exemption is available to any honorably discharged veteran deemed totally and permanently disabled, surviving spouses of the disabled veteran as well as spouses of veterans who died from service connected causes while on active duty. To qualify for this exemption, the veteran must be a permanent resident of the State of Florida or have been so at the time of death, and the veteran or surviving spouse must own and occupy the property as their permanent residence as of January 1 of the year for which the exemption is being filed for.

It is very important for you to know....
that at the time of application, the Veteran or surviving spouse must provide a letter from the Veterans Administration (Letter # 27-333) stating that he/she has been deemed totally and permanently disabled due to a service connected disability or in the case of a surviving spouse, that the Veteran was totally and permanently disabled at the time of their death or the Veteran’s death was a result of active duty. This letter can be obtained by contacting the Department of Veterans Affairs at (800) 827-1000.

Disabled Veterans' Property Tax Discount

This exemption is available to any honorably discharged veteran who is at least 65 years old and is deemed to be totally and permanently disabled to a degree of 10% or more. All or a portion of such disability must have been combat related and the Veteran must have been a resident of Florida at the time of entering the military.

Veterans who qualify may receive a percentage discount on Homestead property taxes equal to the percentage of the Veteran's permanent service connected disability as determined by the Department of Veteran’s Affairs at 1-800-827- 1000.

Total & Permanent Disability Exemption ~ Non Service Connected

This exemption may be applied to any real estate owned and occupied as a permanent residence, less any portion used for commercial purposes for any individual who has been deemed Quadriplegic, Paraplegic, Hemiplegic, or other Total and Permanent disability requiring use of a wheelchair for mobility or who is Legally Blind.

Any person entitled to this exemption must be a permanent resident of the State of Florida as of January 1 of the year for which the exemption is being claimed. Applicant(s) must also submit a  Statement Of Gross Income Form (DR-501A) including income with supporting documentation e.g. IRS return, W-2 forms, Social Security Statements, etc., for all persons residing in the home and such income shall not exceed the set income as provided in Florida Statute 196.101(4). Since this income limitation is adjusted on an annual basis, an income statement has to be submitted to the Property Appraiser for review annually to ensure eligibility for the exemption. If you are a Quadriplegic, you do not have to submit a Statement Of Gross Income.

All applicants filing for this exemption for the first time must submit certifications (DR-416 form) from two unrelated, licensed Florida physicians certifying that the applicant is Totally and Permanently disabled or from one licensed Florida physician and one licensed Florida optometrist certifying that the applicant is Legally Blind. These certifications must be dated within 2 years of the application.