The following example is a history of an actual tax bill for a homeowner in the unincorporated area. The homeowner is homesteaded and the recapture rule is in effect. It shows the run-up in just value (also known as market value), assessed value, homestead exemption (and doubling of the exemption in FY 08-09), and the recapture as market value declined.
The recapture is best described as follows:
Florida law requires that the just value (market value), assessed value, and taxable value (assessed value less exemptions) of all property be determined each year.
Save Our Homes, also known as Amendment 10, places a limitation on the amount of increase that can occur to the assessed value of homestead property. The increase in assessed value cannot be greater than the lesser of the Consumer Price Index or 3%.
In instances where the property's just value exceeds the assessed value, the assessed value will increase within the above limits until the just value and assessed value are equal. This is termed the "Recapture Rule" (see Florida Administrative Code 12D-8.0062).
Being in the unincorporated area, this homeowner paid all of the tax rates;
General Fund
Capital (Conservation 20/20 and CIP, until FY 06-07)
Library
Unincorporated MSTU
All Hazards
As well as these other taxing districts:
Public Schools – Local
Public Schools – State
South Florida Water Management District – Okeechobee Levy
South Florida Water Management District – District Levy
South Florida Water Management District – Everglade Construction
Iona McGregor Fire
Hyacinth Control
Mosquito Control
West Coast Inland Waterway
Solid Waste Assessment
Here is the history:
FY 04-05 (tax base increased 16.4%)
Market Value $186,570
Assessed Value $186,570 (home purchased prior year)
Homestead Exemption 25,000
Taxable Value $161,570
% change in tax value from prior year N/A
Total county taxes paid $ 1,157
Total tax bill 3,230
FY 05-06 (tax base increased 27.5%)
Market Value $210,630 (increase of 12.9% from prior year)
Assessed Value $192,170
Homestead Exemption 25,000
Taxable Value $167,170
% change in tax value from prior year 3.5% increase
Total county taxes paid $ 1,108
Total tax bill 3,233
FY 06-07 (tax base increased 40%)
Market Value $308,200 (increase of 46.3% from prior year)
Assessed Value $197,930
Homestead Exemption 25,000
Taxable Value $172,930
% change in tax value from prior year 3.4% increase
Total county taxes paid $ 1,018
Total tax bill 3,055
FY 07-08 (tax base increase 7.6%)
Market Value $333,960 (increase of 8.4% from prior year)
Assessed Value $202,880
Homestead Exemption 25,000
Taxable Value $177,880
% change in tax value from prior year 2.9% increase
Total county taxes paid $ 967
Total tax bill 2,994
FY 08-09 (tax base decreased 12.4%)
Market Value $295,400 (decrease of 11.5% from prior year)
Assessed Value $208,970
Homestead Exemption 50,000 (homestead exemption doubled per legislation)
Taxable Value $158,970
% change in tax value from prior year (10.6)% decrease (3.4% increase net of additional exemption, representing the recapture)
Total county taxes paid $ 850
Total tax bill 2,902
FY 09-10 (tax base decreased 23.2%)
Market Value $208,210 (decrease of 29.5% from prior year)
Assessed Value $208,210
Homestead Exemption 50,000
Taxable Value $158,210
% change in tax value from prior year (0.5)% decrease (recapture in effect)
Total county taxes paid $ 845
Total tax bill 3,075 (increase primarily due to school district and fire district)