The
SOHD deduction is an acronym for Save-Our-Homes-Differential.
In 1992, the voters of this state passed Amendment 10 to the State
Constitution that provided for limiting increases in homestead property
valuations for ad valorem tax purposes. The ballot title was ''Homestead
Valuation Limitation'', but the grassroots initiative was known as
''Save-Our-Homes''.
All persons entitled to a homestead exemption under Section 6 of Article 7 of the Florida Constitution shall have their
homesteaded property assessed at just value as of January 1 of the year
following the effective date of this amendment. The assessed value shall
change only as follows, whichever is lower:
1)
3% of the assessment for the prior year.
2)
The percentage change in the
consumer price
index.
Of course this limitation does not include any changes,
additions, reductions or improvements to the homesteaded property. The
limitation addressed those value increases attributable to supply and
demand, increased replacement cost, inflation, etc.
The county
property appraiser must still assess your homesteaded property based on
its market or just value. Therefore, since all increases except those
considered to be new construction or improvements to the property are
limited to no more than 3%, a differential is created. The value limited
by this constitutional amendment is labeled on our system as ''assessed
value''.
However, once the homesteaded property sells, the
limitation is removed and the assessed value is automatically adjusted up
to the market or just value. The new owner can file for homestead
exemption and be eligible for the Save-Our-Homes limitation in future
years.
