You may have heard it. Tax notices just went out and some folks are saying, "My assessed value went up! In this market? What's going on?"

I sent an email to the state for a simple explanation. Guess what. Nothing is simple. They referred me back to our Pasco County Property Appraiser Mike Wells. So I asked Mike, "Can you briefly explain the Save Our Homes recapture rule so I can post it in my real estate blog?"

Here's the answer:

In response to your recent e-mail, 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 assessd value are equal.  This is termed the "Recapture Rule"  (see Florida Administrative Code 12D-8.0062).

Mike Wells
Pasco County Property Appraiser

What this means is, you were saving on taxes while property appreciated in the boom years. Now that's over, the state has the right to get back a little bit. Seems fair. Not fun, but fair.